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Daily Digest - Dec 21

Sunday, December 21, 2008, 7:37 AM

Second wave of foreclosures makes prime time news, "How did we get here?", Mortgage fraud allowed to flourish, Americans staying put, Athens still burning, FSN broadcast (juggling dynamite).

Economy

The 2nd Wave of Foreclosures has finally made it to the mainstream Media (Hat Tip, Post By Professor Samuel D. Bornstein Professor of Accounting & Taxation Kean University, School of Business, Union, NJ)

The 2nd Wave of Foreclosures has finally made it to the mainstream Media. CBS's 60 Minutes had a segment on 12/14/08, but they missed a very important point. Here is a post which may have merit for your blog....... I would like to bring a very important bit of information to your attention that relates to this economic crisis that was overlooked until now.

On Sunday, 12/14/08, CBS 60 Minutes aired a segment "The Mortgage Meltdown". Scott Pelley's piece on the 2nd Wave of Foreclosures overlooked a critical fact. The segment missed the fact that this next wave of Foreclosures in 2009 Will Take Self-Employed and Smaller Businesses who have these TOXIC mortgages. In fact, ALT-A, Option ARMS, Interest-Only, the TOXIC Mortgages that are considered the "Troubled" assets in TARP were specifically marketed to the self-employed who fell prey to them. The upcoming defaults on these risky "Toxic Mortgages" will result in an increase in foreclosures. But worse, once these small businesses fail, the resulting loss of jobs will cause millions to add to the ranks of the unemployed. Note that self-employed business owners (16.2 million according to the SBA) employ between 1-10 employees.

An NASE survey at www.nase.org , was the first to provide compelling evidence of small business involvement in the upcoming toxic mortgage crisis. The survey was created by Prof. Samuel D. Bornstein and Jung I. Song, CPA of BornsteinSong Consultants in Oakhurst,NJ,and was conducted by the National Association for the Self-Employed (NASE) which issued a Press Release on November 21, 2008.

In case you missed the posts on the second wave of the coming housing meltdown, they are Housing PDF and 60 Minutes Video

White House philosophy stoked mortgage bonfire

Bush, according to several people in the room, paused for a single, stunned moment to take it all in.

"How," he wondered aloud, "did we get here?"

 

Talking Heads, (Not the CNBC Kind) How Did I Get Here?

 

Yeah, How Did We Get Here, Audit Interview: Jack Dolan

State regulators allowed thousands of ex-convicts to enter a profession that gave them access to the most sensitive and personal financial information: credit cards, bank accounts and Social Security numbers.

Those criminals went on to commit nearly $85 million in mortgage fraud, the newspaper found. They stole their customers' identities. They stole their money. They even stole their homes...

Beyond the licensing, regulators routinely overlooked or ignored complaints, allowing rogue brokers to flourish amid one of the biggest housing booms in state history.

Americans less likely to roam :study

WASHINGTON (AFP) - Once celebrated for their ability to pack up and move around the country on a whim, Americans are increasingly opting to stay put, according to a report published by the Pew Research Center.

Using polling data and government statistics, Pew found only 13 percent of Americans moved house between 2006-2007, the lowest rate since records began in the 1940s.

Athens see more violent clashes

FSN Broadcast December 20 (Part 1 Economy, Mention of Athens, Energy, Part II Juggling Dynamite, Part III Year End Review

 

 

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14 Comments

jrf29's picture
jrf29
Status: Gold Member (Offline)
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Posts: 453
Re: Daily Digest - Dec 21

Hi Davos,

Did I mention how great your daily digest is?  I read it every day and I find it to be an excellent summary of the news.  In the spirit of improving what is already good, may I very humbly suggest that you go a little easier on bold, underlined, italics which are added to the articles? 

First, it is a little bit distracting when trying to read.  Second, technically you are misrepresenting copyrighted material, which is a no-no (properly there should be brackets saying [bold, underlined, italics added]).  Third, your readers are intelligent adults who are perfectly capable of reading and understanding the implications of what is written, without it having been pre-highlighted for them, in any case.

Just a very small thought relating to a very excellent daily article.  Although you should seriously consider using editorial brackets which say [bold, unlderlined added] otherwise you can properly be accused of altering and intentionally misrepresenting the original form of copyrighted work by another author.

Davos's picture
Davos
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Re: Daily Digest - Dec 21

Hello Jrf29:

Point well taken! I skim a lot of material. A lot. I try to speed read it. Your comment to make this a better place made me stop and think that it is safe to say I'm not the norm - most readers don't need a bulls-eye painted on the work so they can focus on the meat and potatoes of it to skim it faster.

Thanks! Take care, 

jerry_lee's picture
jerry_lee
Status: Martenson Brigade Member (Offline)
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Posts: 126
Re: Daily Digest - Dec 21

Thanks Davos for some incredible 'stuff'!

The 2nd wave of foreclosures and the hit to small businesses means all of us are going to know a LOT of people thrown out of work and a LOT of people losing their businesses.

As we are challenged by Dr CM, community is our most important investment right now....not just for our own sakes. I'm struggling to come up with a new term to replace 'safety net' because I can see a lot of shredding and breaking of support systems ahead. The word 'community' is a good starting place.

What can Community be? How much help can we give our neighbors? How much help will we need from our neighbors?

Damnthematrix's picture
Damnthematrix
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Posts: 3998
Re: Daily Digest - Dec 21

  http://www.informationclearinghouse.info/article21503.htm

How to Deflate the Superpower of Toilet Papers

By Matthias Chang

It Is So Stupid To Borrow US Dollar "Toilet Papers" For Trade Finance. 

There Can Be Only A Credit Crunch For Dollars If You Are Stupid Enough To Want To Be Paid And To Pay In Dollars.

Otherwise, There Is Only An Illusion Of A Global Credit Crunch.

This Is The Global Con Game By Bernanke, Paulson

December 20, 2008 "Information Clearinghouse" -- -It
may have made some sense, post-World War II to dollarise international
trade when the so-called “Free World” was supposedly threatened by the
“Communist Bloc” and the Imperial United States was offering
“protection” in exchange for financial dominance.

The imperial design for financial dominance was the Bretton Woods dollar reserve currency scheme.

Since those
days, the US has been abusing its financial power by the use of its
greatest invention, the “toilet paper printing press” (now, the modern
“electronic printing press”) to issue irredeemable fiat money.

Now the world is flooded with trillions of this toilet paper, namely US dollars.

The US
Superpower is at the very precipice of the abyss and a wrong move will
plunge it into the black-hole of financial Armageddon.

 The world
will not face Armageddon, only the US. The rest of the world will
suffer pain, deservedly so, for being so stupid in believing in the use
of US toilet papers as money!

To avoid this
catastrophe, Ben Bernanke and Paulson as directed by their Shadow
Money-Lender masters have devised an insidious scheme. The ultimate
con-game!

Basically, what they have done is to try to turn a weakness into perceived strength.

Let me explain.

Countries have
been so used to trading in dollars that they cannot think otherwise.
They continue to borrow dollars to finance their imports. Their
corporations continue to borrow dollars to finance their business
expansion. It is as if the world is addicted to dollars, as a drug
addict is addicted to cocaine and or crack!

The world has
been brainwashed into thinking that without the US toilet paper, their
global economy would come to a grinding halt.

How stupid!

Yet this is
exactly the state of mind of governments and central banks all over the
world. China is a case in point: blind reliance on the US dollar. But
fortunately, they have other strengths which will see them through this
painful period.

Taking
advantage of this temporary idiotic global mindset, the Fed and the US
Treasury have deliberately triggered a credit crunch for US dollar
denominated toilet papers. The major global banks are hoarding the
toilet papers and with-holding cross-border financing of every kind.

There is an
ocean of toilet paper (literally in the trillions) but there is now
created, a deliberate shortage of these very same toilet papers.

But where is the money? There is no money. It is an illusion!

What a
ridiculous contradiction. But that is the present reality. The Fed has
stated that they will pump US$8.5 trillion to resolve the crisis! You
have to give credit where credit is due. This is indeed a brilliant
con-game and the whole world has fallen for it hook, line and sinker –
almost the whole world! 

I refuse to accept this state of affairs.

Yet, the Nobel
Laureates in economics have missed this stark reality by a thousand
miles and are coming up with all kind of theories for the present
global credit crunch of US toilet paper. Alternatively, it may be that
as paid-scribes, they have been directed to spew economic nonsense to
confuse other economists.

How was this illusion set up?

This happened
when all of a sudden, and in total connivance, Brazil, Mexico, South
Korea and Singapore got into the act by entering into swap facilities
with the FED, each requesting a hefty US$35 Billion to “overcome their
liquidity problems.” These countries could not get enough toilet
papers! Wow!

Even the great
magician Houdini would not have come up with this grand illusion of
shortage in currency when there is an ocean of funny money. But it is
an illusion and a stupid one at that.

So now,
Bernanke and Paulson is advertising to the whole world, that they are
prepared to do anything and use all financial weapons, including
financial nuclear weapons to defeat the crisis.

For those
countries that are short of toilet papers, the US will be the global
guarantor and will be willing to lend trillions of toilet papers to
help them weather the financial crisis and the credit crunch. How
generous of the FED and the US Treasury. But there is a catch.

The catch being – countries must continue to use the worthless toilet papers in global trade.

In one
masterful stroke, the US has created an artificial demand for dollars
thereby rescuing in the short term the plunging value of the dollar.

Since the
global banks are not willing to lend and are insolvent, the mighty FED,
the nasty and abhorrent creation of the global Shadow Money-Lenders,
will be the lender of last resort to the whole world. It will be
business as usual. That is what they hope. This is their final gambit.
The last magic show!

And as I have written earlier, this is the OBAMA’s GAMBLE!

Countries need
not trade in dollars, as after all, they are not even BUYING “MADE IN
AMERICA GOODS”. AMERICA IS A NET IMPORTER, NOT EXPORTER.

So central
banks of the world, especially the Third World, and the emerging powers
of China and Russia: you have no need for US toilet papers when you
sell your national products to countries other than the US.

And in so far
as the U.S. is concerned, why are you demanding to be paid in toilet
papers? Why are you not demanding payment in your own currency?

China and
Russia are at the present moment on the wrong course. They hold
trillions of US dollar denominated debts but act as if they are at the
mercy of the US, fearing that if they do anything unfavourable to US or
cahllenge the hegemony of the greenback, there will be a massive slump
in the value of the dollar.

But that is a given in any event. So why play a game that has been rigged in the favour of the global Shadow Money-Lenders.

There is no
reason why Russia and China should be in a recession or experience
slower growth. They are suffering from the present so-called credit
crunch because they continue to manage their economies in dollar terms
and in a dollar mindset.

The US is playing suicide poker and calling one last card. They have nothing on the table but toilet paper.

The US will collapse in a minute, if not sooner if China and Russia were to categorically call the US’s bluff and say:

1) Close down the derivative casino now!

2) Buy back all the toxic wastes which you have unloaded on the unsuspecting global economies with currencies of our choice!

3) Since the US is in debt, the US must now borrow in the currencies of our choice to repay past debts and new loans!

Failure to
comply will result in a credit crunch to US banks and companies. US can
continue to use domestically their worthless toilet papers (to wipe the
shit off the ceiling fans, if there are any left hanging from the
ceilings) but there will be no more credit in toilet papers. Period.
There will be loans only in other currencies.

This is the checkmate. .

So China and
Russia should wake up and do what is necessary to save their economies
as well as the global economy or their economies will end up in the
shit hole as they are now playing the US / UK rigged game.

I am not
surprised at the present state of mind of Chinese and Russian bankers.
They have sent some of their best brains to be trained in Harvard etc.,
and by the fraudsters in Goldman Sachs, JP Morgan Chase, Merrill Lynch,
Citigroup etc. They have all been infected with the Ponzi disease and
as such cannot think otherwise. Otherwise, how do you explain their
mental paralysis?

This is a simple financial puzzle.

There is no credit crunch. There is only a false or an illusion of credit crunch for US toilet papers.

Once there is
no demand for dollars, there will be no credit crunch for dollars. The
Shadow Money-Lenders con-game will be exposed for what it is – a giant
fraud. Not unlike that of Bernard Madoff, only a thousand times more
insidious and toxic.

I hope that I have made myself absolutely clear to the financial officials in Russia and China.

If China and Russia and the third world continue to stand pat, these economies deserve to be in the dog house.

Bernanke and
Paulson are going to destroy the US and the global economy so as to
fulfil the grand design of the Shadow Money-Lenders. Stop them before
it is too late.

The Count-down has started!

Matthias Chang - http://futurefastforward.com/

swissgal's picture
swissgal
Status: Member (Offline)
Joined: Dec 19 2008
Posts: 2
Why The US Needs A Depression (The Fourth Coming)

Written Oct 2005, predicts the start of a depression in 2009:

http://www.gold-eagle.com/editorials_05/laird100905.html

Heidi

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Davos
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Re: Daily Digest - Dec 21

Hello jerry_lee:

Glad to cut and paste what I see during my daily travels scouring the net. Yes, you raise some great merits, I hope it won't be like Athens and Iceland or like the Roman empire. Take care. 

jrf29's picture
jrf29
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Posts: 453
Re: Daily Digest - Dec 21
Davos wrote:

I skim a lot of material. A lot. I try to speed read it.

Just compare our two pictures!  Hilarious!

Please keep up your generous and highly informative work.

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Davos
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Re: Daily Digest - Dec 21

Hello Jrf29:

Tooooo funny! I'm honored to contribute to this community, take care! Laughing 

joemanc's picture
joemanc
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Posts: 834
Re: Daily Digest - Dec 21

I'm sure we will see more of these in the very near future...

http://www.independent.co.uk/news/uk/home-news/top-banker-found-hanged-i...

 

On the lighter side of things...

http://www.sockandawe.com

 

jerry_lee's picture
jerry_lee
Status: Martenson Brigade Member (Offline)
Joined: Sep 24 2008
Posts: 126
Re: Daily Digest - Dec 21

joemanc

Thanks for the sockandawe !! Great comic relief. I only scored a 3, but I'm going to give it another try.

Davos's picture
Davos
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Posts: 3620
Re: Daily Digest - Dec 21

Hello JoeManC, I found this blog, it is over the top and really grim, http://wcvarones.blogspot.com/2008/04/greenspans-body-count-eleven.html but it points out, that like your post, suicides go up 25% in bad times. Pretty amazing, all this over somehting that is printed out of thin air.

Damnthematrix's picture
Damnthematrix
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Posts: 3998
gregoro's picture
gregoro
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Posts: 15
Re: Daily Digest - Dec 21

 

Japan joins the money drop??  Gotta protect exports!

http://www.bloomberg.com/apps/news?pid=20601068&sid=acs9ak36bg4Q&refer=home

 

Finance Minister Shoichi Nakagawa said last week that he has “the means” to sell yen to stem its appreciation. Japan hasn’t intervened in the foreign-exchange market since 2004.

Companies are also struggling to obtain funding as the market turmoil dissuades investors from buying corporate debt. To help businesses get financing, the Bank of Japan last week decided to buy commercial paper for the first time.

Gloomy Households

Sales at home are unlikely to make up for the collapse in demand from abroad. Households, whose confidence is at a record low, pared spending in each of the eight months to October as wage growth stagnated and job prospects worsened.

The Finance Ministry last week submitted an extra budget for the year ending March that includes 2 trillion yen in cash handouts for households as Prime Minister Taro Aso tries to spur spending. That may be too little, too late, economists say.

 

Damnthematrix's picture
Damnthematrix
Status: Diamond Member (Offline)
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Posts: 3998
Re: Daily Digest - Dec 21

US President-elect Barack Obama has nominated two leading global warming
specialists for key science posts in his administration.

Harvard physicist John Holdren will be Mr Obama's scientific adviser
while marine biologist Jane Lubchenco will head the US oceanic research
body.

Both have advocated greater government action on climate change.

http://news.bbc.co.uk/1/hi/world/americas/7793779.stm

Looks like there is sense in this new administration!!!

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