10/11/2008

France Still Angry with us for Kicking out the Nazis

Markets
The wounded bull cautiously stirs with signs of real life. He's hungry. He dosn't want to get hurt again so he looks before he leaps. There are lots of market indicators ready to soak up lots and lots of cash; the market hit a bottom on Friday and I'll bet a million that a market recovery of as much as a couple of thousand points starting next week. The only fly in the ointment is the refusal of the G7 to guarantee all bank trades, the one thing that will loosen the credit markets, and as usual France and Germany will stop any and all action. They are still furious at us for kicking out the Nazis. The rate we're talking about is the LIBOR, London InterBank Offered Rate, which is the rate world banks charge to lend to one another. Because the crooked bank cocksuckers have been lying about their asset values for God Knows how long, nobody trusts anybody's ability to back their plays with cash. Which means? Crooks won't trade with crooks, they insist on trading only with honest bankers and we all know that there ain't none. Trading money overnight is a CONDITION of stemming the bleeding and until overnight lending becomes normal a recovery will be impossible. As I'm writing this piece the G7 is addressing this problem by refusing to address it. We have to acknowledge the bubble nature of all markets prior to this collapse; a housing bubble, a mortgage bubble, an equity bubble, a bond bubble, a credit bubble, a commodity bubble, a private equity bubble, a hedge funds bubble, and the never to be forgotten hubris bubble. All fueled by credit handed out to everyone without question. Already the Left is refusing to acknowledge any responsibility for the housing and mortgage bubble, blaming it on others in such a way as to continue the entitlement nature of mortgages. We will see, but things look positive for the next week, sort of.

New Candidates for Perp Walk (that they will never take because they are the government agencies). Business Week (State whistleblowers tried to curtail greedy lending—and were thwarted by the Bush Administration and the financial industry )has a surprising article indicating that STATE attorneys generals went to D.C. warned about the lending practices and were told to fuck off. Federal Law says states have no right to override the fucking feds. However California did it anyway by forcing Countrywide to act. Full article about below is here

Countrywide Set Aside $8.4 Billion for Lawsuits

The preemption issue resurfaced on Oct. 6 when The New York Times reported that a group of states had pressured Bank of America's (BAC) Countrywide Financial mortgage unit to resolve pending suits by setting aside $8.4 billion for borrowers. "This agreement demonstrates the effectiveness of states in addressing predatory lending...proving states should not be preempted by federal legislation," said California AG Jerry Brown.

In other words....well there are no other words. I'd puke but I'm so empty all I have left is the dry heaves.......

1 comment:

John Stephens said...

At the bottom of it all is the bubble that no one wants to talk about, since no one whats to think about what will happen when it finally pops:

The political bubble.