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| User Info | Federal Reserve Recognized Trash in forum [Ticker] | |||
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Genesis Posts: 71416 Incept: 2007-06-26 
KD^2 
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http://market-ticker.org/archives/1351-F....
---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me
2009-08-19 15:29:26
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Throxxofvron Posts: 2672 Incept: 2009-02-17 
The Land of Bilk & Money
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Those valuation numbers would indicate a comprehensive insolvency of the entire banking system at present leverage ratios.
---------- DIONYSUS: " Thou hast no knowledge of the life thou art leading; thy very existence is now a mystery to thee. " -from 'The Bacchantes' By Euripides “During times of universal deceit, telling the truth becomes a revolutionary act.” -George Orwell Last modified:
2009-08-19 15:40:29 by throxxofvron
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Stormrunner Posts: 118 Incept: 2008-01-29 OC CA
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This is probably the wrong place to ask this but in light of these types of developements do you still believe the 20 week / 50 week stategy is appropriate. I believe that the 20 just punched though buy more than 1% in the last day or so and have been waiting to redeploy. Am I correct, your thoughts?
2009-08-19 15:40:36
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Alex Posts: 1649 Incept: 2007-08-03
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Home equity 80%->50% Subprime CC receivables 60%->45% Nice!
2009-08-19 15:44:02
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R0h1tp Posts: 813 Incept: 2008-02-20
Austin, Texas Online
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I might be totally confused here but aren't the two columns in the ticker reversed?? Either that, or I do not know how the numbers are presented. Edit: Or was this change made in April and we are just talking about it now? ---------- If you’re looking for the bottom of the market there’s a special offer − buy one, you get the next one free. Last modified:
2009-08-19 15:46:31 by r0h1tp
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Koaj Posts: 952 Incept: 2009-02-03
NJ Online
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just to confirm im reading this chart correctly... if the fed has 1m in CRE loans, they are lending out 75% of that loan vs 65% of the same loan 3 months ago. they are assuming that the underlying property has risen in value or they took a dump on reserve requirement ratio rules thanks in advance
2009-08-19 15:45:24
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Alex Posts: 1649 Incept: 2007-08-03
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http://www.frbdiscountwindow.org/discoun....
2009-08-19 15:47:38
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Koaj Posts: 952 Incept: 2009-02-03
NJ Online
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thanks alex...so basically they are levering the F up despite declining real values on the underlying loans jeez we're screwed
2009-08-19 15:53:17
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Alex Posts: 1649 Incept: 2007-08-03
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No, those are for 4/27, if I'm reading it correctly. All I know is some margins are being relaxed and others are being tightened. The new margins come into effect on 10/19.
2009-08-19 15:57:42
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Obseedian Posts: 8252 Incept: 2007-07-26
RIMM Central
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I think the table is from April, it's just so ****ing confusing. The new Excel table says they increased the lendable value for much of this trash, for so-called "group deposits". HELOCS go from 80% before April to 50% after April back up to 72% in October.
---------- Would you give your money to these banks? http://bankimplode.com/list/troubledbank.... Genitalia - Not just another Italian airline!
2009-08-19 16:04:38
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Genesis Posts: 71416 Incept: 2007-06-26
KD^2
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The point folks is that these collateral levels for short-term loans at the Discount Window are dramatically below the carrying value on bank balance sheets. ---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me
2009-08-19 16:05:03
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Markjw Posts: 106 Incept: 2008-10-01 Online
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The web page is from March 30, 2009. It shows that the % were dropped starting in April 27, 2009. Anyone recall a specific flurry of activity at the end of April that might be explained by this change?
2009-08-19 16:21:14
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Wendya Posts: 26 Incept: 2009-06-02
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CR has a nice entry up: Failed Bank List, Including Percent Losses: http://www.calculatedriskblog.com/2009/0.... ... and while I'm at it, Mish has this: Emails from a Bank Owner regarding FDIC and Under-Capitalized Banks (http://globaleconomicanalysis.blogspot.c.... Last modified:
2009-08-19 16:44:41 by wendya
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Throxxofvron Posts: 2672 Incept: 2009-02-17
The Land of Bilk & Money
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Even if these assets are ONLY valued at a 15% haircut, barring deposits on balance of sufficient quantity; it means that the Banks themselves are underwater by 15% or more. This is 10% or more below the valuation where they should be shuttered; -& this is after months of Bailouts and 0% FED Window loans against impaired collateral, an epic equities rally; and the massive ( failed ) stimulus package. The carrying values vs. the FED collateral levels indicate that the Bank balance sheets in Our financial system are generally beyond any reasonably conceivable salvage. This would simply seem to indicate that there is neither enough decent debt collateral left to borrow against or to sell at the FED's accepted valuations to save the majority of the primary institutions from insolvency. It must be repeated at this point that the FDIC is in need of a $100 - $500 BILLION Dollar BAILOUT to protect the Deposit Base from being Destroyed in the Collapse of these Banks. This money cannot be borrowed against assets as the FDIC has NO Assets; and so these funds can Only be generated via an Outright Treasury Print to cover the deficit of the FDIC! This will Not be QE. An Outright Print of dollars appears to be the Only Possible Solution. ---------- DIONYSUS: " Thou hast no knowledge of the life thou art leading; thy very existence is now a mystery to thee. " -from 'The Bacchantes' By Euripides “During times of universal deceit, telling the truth becomes a revolutionary act.” -George Orwell
2009-08-19 16:38:21
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Onchaos Posts: 70 Incept: 2008-10-09 Virginia
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Quote:[bold]March 30, 2009[/bold] This statement prefaces the chart Karl, shows in the ticker. Now the chart has more meaning, at least to me. ---------- Freedom is chaos - give it to me anyway!
2009-08-19 16:40:31
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Icanhasbailout Posts: 2168 Incept: 2009-03-10
Imaginationland Online
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The actual recognition of how over-marked these things were is a step in the right direction, at least. What might it take for the next step to be taken, forcing these banks to recognize the market value in their actual accounting rather than just at the discount window?
---------- I can has TARP? http://icanhastarp.com
2009-08-19 16:51:58
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Rodergate Posts: 50 Incept: 2008-02-27
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If the FED is the lender of last resort via the back of the US tax payer, then there is no better basis for the banks to mark the loans to the market by applying the FED discounts!!!
---------- Pigs get fat, hogs get slaughtered. Last modified:
2009-08-19 17:12:34 by rodergate
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Froghat Posts: 213 Incept: 2009-01-28 Banned
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So, when does the collapse happen?
2009-08-19 17:12:18
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Markjw Posts: 106 Incept: 2008-10-01 Online
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I think it happened last year. We are in the death throes.
2009-08-19 17:26:38
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Steelhead23 Posts: 387 Incept: 2008-09-09 Portland OR
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Let me first state that I wholeheartedly agree with Karl that the system will not recover until asset values are appropriately booked and insolvent banks liquidated by the FDIC. But, let's take our conversation to the next level - why hasn't this been done? I reject the argument that the bailouts are being done to enrich the circle of friends of the administration - not that this desire is not part of the mix - simply because the risk (public rejection) isn't worth the reward. No, I believe that the "paper it all over" approach is being tried due to abject fear of an all-on credit crunch - basically a fear that if the banks were made to mark all assets to the market so many bad things would happen all at once, that it would overwhelm the Masters of the Universe, they could fail, would lose face and be villified like Herbert Hoover for letting the U.S.S. Economy sink with all hands. No one in this administration has the courage it takes to abandon their friends (the bankers) to face the dragon(s). I suspect that the Masters fully expect a "lost decade" type recession and would prefer such an outcome to a wild, deflationary spiral. What they fail to see (or refuse to) is that their actions (bailouts, stimulus, QE, loans) may actually increase the probability of the U.S.S. Economy sinking from its own debts. My point is merely this - Geithner, Bernanke, Summers et al. may be more cowards than crooks.
---------- short em all - let God sort em out!
2009-08-19 17:30:08
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Iou Posts: 186 Incept: 2009-03-16
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Quote:So, when does the collapse happen? It already has. We've just been protending everything is normal. There will be a bank run by year’s end. MATH my friend. It's all in the Math. Invest accordingly. ---------- "When plunder becomes a way of life for a group of men living together in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it." - Frédéric Bastiat LEFT vs. RIGHT Look up shell game and shills.
2009-08-19 17:30:30
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Markjw Posts: 106 Incept: 2008-10-01 Online
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Steelhead23: They are deathly afraid. It means death of the Federal Reserve system and a new currency. It will be chaos no matter how it happens. I think they are in the shadows choosing between a new currency or martial law. I hope they choose the former. www.RevokeTheFed.com www.JoeSixPack.me/orig_letter.html www.FinancialBlackmail.US/essay.html www.DerivativesCollapse.com
2009-08-19 17:41:51
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Iou Posts: 186 Incept: 2009-03-16
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steel, Our government is so out of control I don't expect anything will be done until it's too late. Giving up Power is something only an honest, moral person would do. Does that describe our current leaders in Washington? I think not. We are ****ed! Prepare for the worse and then double it. IMO, it's going to be that bad. John Adams wrote..We have no government armed with power capable of contending with human passions unbridled by morality and religion. Avarice, ambition, revenge or gallantry would break the strongest cords of our Constitution as a whale goes through a net. Our Constitution is designed only for a moral and religious people. It is wholly inadequate for any other. - ---------- "When plunder becomes a way of life for a group of men living together in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it." - Frédéric Bastiat LEFT vs. RIGHT Look up shell game and shills.
2009-08-19 17:43:13
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Throxxofvron Posts: 2672 Incept: 2009-02-17
The Land of Bilk & Money
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Steelhead23: They are BOTH Cowards & Crooks. We would not be in the situation We are in but for the Bezzle. The Crooks know eventually They are likely to be Imprisoned for Life or lose Their Lives; once the collapse is fully manifest They are Finished so They are trying to loot Their way out the door before the roof caves in. The Cowards are likely to be vilified as well for lying and colluding for so long; They too are in mortal fear of losing Their Fortunes -and Their Very Lives. A new currency and a debt reset could have been engineered already and saved Millions of Citizens from destitution already imposed; so I'm not buying a controlled collapse theory. .gov is suckering all the People it can before the Currency and/or Legal Framework of the Country is Re-Organized and this will be punished violently sooner or later. I half expect an Amnesty of some kind for the perpetrators of the Fraud and for debts denoted in FRN so as to try to assuage the anger of the Citizenry. What happens to the Republic is a matter of conjecture; but the Money Multiplier seems to indicate that the fiat currency is simply Dying... ---------- DIONYSUS: " Thou hast no knowledge of the life thou art leading; thy very existence is now a mystery to thee. " -from 'The Bacchantes' By Euripides “During times of universal deceit, telling the truth becomes a revolutionary act.” -George Orwell
2009-08-19 18:00:57
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Andrew123 Posts: 107 Incept: 2009-07-05 California
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Gen, do you believe that the payroll numbers that will be released officialy tommorrow were leaked? How protected are these numbers (ie. who knows what they are in advance). Also, how honest are these numbers? Is there room for outright manipulation (not just that people stop looking for work so tdon't get counted, I mean outright manipulation)? Finally, do you have any thoughts on the upcomming numbers? Thanks.
2009-08-19 18:07:46
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