@ProofCollection said:
First of all, there's no national housing market although financial pundits like to discuss this creature. Every housing market is local. Rarely do all areas of the country decline at the same time, maybe that's what you mean? Maybe you forgot about the 25% crash in LA, Riverside, and Ventura county in the early 90's for example?
Not at all, that's EXACTLY what I am talking about. By diversifying geogrphically, absent a decline in the median national home index, the bonds all work out, even the lower tranches of MBS and CMOs.
That is what did NOT happen in 2008. That and the leverage.
@derryb said:
don't need a gold standard for sound money. All we need is law that requires congress spend no more than what is in the coffers. The White House could prepare all the budgets they want, it is congress that is eager to spend all that has been allotted, even when it's not there. A balanced budget required by law should do the trick.
Explain how this works during World War II........
@derryb said:
don't need a gold standard for sound money. All we need is law that requires congress spend no more than what is in the coffers. The White House could prepare all the budgets they want, it is congress that is eager to spend all that has been allotted, even when it's not there. A balanced budget required by law should do the trick.
Explain how this works during World War II........
Did you mean the coming WWIII?
At the same time congress legally declares a war (unlike the past 30 years of continuous conflict) it also passes emergency legislation to fund it with war bonds. Yes, it borrows the money, but repays it with a haircut imposed on various departments and agencies when the conflict ends. A temporary, higher tax on defense corporations that profit from the war should also be imposed. Legislation requiring the sons and daughters aged 18-25 of all congress members to be inducted to serve in such a war would likely put some restraint on declaring needless war.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
" ‘I have no money’: Thousands of Americans see their savings vanish in Synapse fintech crisis "
-Thousands of Americans will receive little or nothing from savings accounts that were locked during the collapse of fintech middleman Synapse.
-Customers believed the accounts were backed by the full faith and credit of the U.S. government.
-CNBC spoke to a dozen customers caught in the predicament, people who have lost sums ranging from $7,000 to well over $200,000.
-While there’s not yet a full tally of those left shortchanged, at fintech Yotta alone, 13,725 customers say they are being offered a combined $11.8 million despite putting in $64.9 million in deposits.
Kind of a mess, since there was a middleman involved. But... the depositors believed they were protected by FDIC, and claim they were told so by the various firms involved, since the deposits were being held in several banks (which are insured by FDIC).
Up to $96 million is missing; and the FDIC is not going to cover the depositors.
@tincup said:
Kind of a mess, since there was a middleman involved. But... the depositors believed they were protected by FDIC, and claim they were told so by the various firms involved, since the deposits were being held in several banks (which are insured by FDIC). Up to $96 million is missing; and the FDIC is not going to cover the depositors.
I feel bad for these people, but this is why you invest DIRECTLY with a bank or a big mutual fund company like Fidelity or Schwab and put your safe $$$ into their safe money market funds.
Of course, if we taught investment and finace basics in high school, this doesn't happen.
De-dollarization is an effort by a growing number of countries to reduce the role of the U.S. dollar in international trade. Countries like Russia, India, China, Brazil and Malaysia, among others, are seeking to set up trade channels using currencies other than the almighty dollar.
@dcarr said:
Citibank was not "forced" to make such loans. The Government-Sponsored Enterprises (GSEs) wanted the loans to be available. But they could not legally force Citibank or anyone else to make such loans. They could only encourage them to do so and to provide backing for them to do so. It was entirely Citibank's decision to make them. And of course, their plan was to securitize them and package them with insurance from AIG, into "Mortgage Backed Securites" (MBS) and offload them onto some suckers. AIG was happy to rake in the fees and never planned to pay out on the insurance.
Yes, they weren't forced...technically. But what happens to their CRA score and there relationship to the regulators if all their competitors are making crap loans to "politically marginalized groups" and Citibank isn't ???
AIG didn't provide insurance for MBS or CMOs. Credit default swaps are separate. AIGs CEO was chosen by Elliot Spitzer and his party.
.
"Technically" ? What does that mean here ?
Maybe they felt that it would make them look good to make the loans, and that they could profit from doing so. But they were never forced. They could have still served the under-privileged communities without making zero-equity and negative-equity loans.
Technically, MBS would be packaged with insurance (such as that underwritten by AIG) making it into Collateralized Debt Obligations (CDOs). AIG was bailed out for the benefit of Goldman Sachs because GS held a large quantity of those CDOs.
Comments
Not at all, that's EXACTLY what I am talking about. By diversifying geogrphically, absent a decline in the median national home index, the bonds all work out, even the lower tranches of MBS and CMOs.
That is what did NOT happen in 2008. That and the leverage.
Explain how this works during World War II........
Did you mean the coming WWIII?
At the same time congress legally declares a war (unlike the past 30 years of continuous conflict) it also passes emergency legislation to fund it with war bonds. Yes, it borrows the money, but repays it with a haircut imposed on various departments and agencies when the conflict ends. A temporary, higher tax on defense corporations that profit from the war should also be imposed. Legislation requiring the sons and daughters aged 18-25 of all congress members to be inducted to serve in such a war would likely put some restraint on declaring needless war.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
and now the latest failure:
" ‘I have no money’: Thousands of Americans see their savings vanish in Synapse fintech crisis "
Kind of a mess, since there was a middleman involved. But... the depositors believed they were protected by FDIC, and claim they were told so by the various firms involved, since the deposits were being held in several banks (which are insured by FDIC).
Up to $96 million is missing; and the FDIC is not going to cover the depositors.
I feel bad for these people, but this is why you invest DIRECTLY with a bank or a big mutual fund company like Fidelity or Schwab and put your safe $$$ into their safe money market funds.
Of course, if we taught investment and finace basics in high school, this doesn't happen.
It would still happen. Greed does amazing things to some.
Any thoughts about this statement???
De-dollarization is an effort by a growing number of countries to reduce the role of the U.S. dollar in international trade. Countries like Russia, India, China, Brazil and Malaysia, among others, are seeking to set up trade channels using currencies other than the almighty dollar.
hummmmmmmm
What about a 30% tariff on imports from Russia, India, China?
Do we really need their goods?
Largest China & Russia Imports to USA;
include electronic equipment, machinery, nuclear reactors (LMAO), boilers, toy and games.
I'd say Noooooooo .. made in the USA
.
Vultures preying on the weak.
.
.
"Technically" ? What does that mean here ?
Maybe they felt that it would make them look good to make the loans, and that they could profit from doing so. But they were never forced. They could have still served the under-privileged communities without making zero-equity and negative-equity loans.
Technically, MBS would be packaged with insurance (such as that underwritten by AIG) making it into Collateralized Debt Obligations (CDOs). AIG was bailed out for the benefit of Goldman Sachs because GS held a large quantity of those CDOs.
.
We are weak.
Knowledge is the enemy of fear