Hank Paulson, U.S. Government Fannie/Freddie Buyout Team, Goldman Sachs
Hey assholes. I’m over here getting the stuffing knocked out of me with these banks. Help a Government brother out and buy some already. Will ya? By the way, Fannie Mae is well capitalized; but we’ll buy them out anyway and stick the shareholders with donuts, or just kill them.
Good talk.
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Hey Hank, you watching gold, ovah heah?
GG past $46, again.
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Calvino,
Please splain your E/J call…
“Under a conservatorship, the shares of the companies would be worth little or nothing, and the losses on mortgages they own or guarantee would be paid by taxpayers, the paper said late Thursday on its website.”
That sure seems like a shitty deal for you and me. Why should I have to cover Joe Schmoe’s ass on his beachfront 5-bedroom house that he bought on a janitor’s salary?
Yo DP. Would you recommend one of your fancy option spread for the FNM?
No spread needed, just go long some puts as FNM will surely trade to 0.
You can hedge by selling/writing same month but lower strike calls against it, limiting both profit & loss at the same time (‘vertical spread’).
Thanks!
from bespoke:
Not taking dividends into account, the Ultrashort Oil&Gas ETF (DUG) is down 12.45% year to date, but the Ultra (long) Oil&Gas ETF (DIG) is down 7.29%.
That’s some f’d up shite. The ETF’s are turning out to not be as simple and effective as billed (big surprise). -RickH
here comes another manufactured (intermediate) bottom
Paulson: Dr. X without the superpowers.
Bernenke, Paulson, et al: “The League of Ordinary Gentleman…”
…in extraordinary times.
I will introduce this statement about the pending financial disaster, as a special order and insert it into the Congressional Record next week. It reads as follows:
I have, for the past 35 years, expressed my grave concern for the future of America. The course we have taken over the past century has threatened our liberties, security and prosperity. In spite of these long-held concerns, I have days—growing more frequent all the time—when I’m convinced the time is now upon us that some Big Events are about to occur. These fast-approaching events will not go unnoticed. They will affect all of us. They will not be limited to just some areas of our country. The world economy and political system will share in the chaos about to be unleashed.
Though the world has long suffered from the senselessness of wars that should have been avoided, my greatest fear is that the course on which we find ourselves will bring even greater conflict and economic suffering to the innocent people of the world—unless we quickly change our ways.
America, with her traditions of free markets and property rights, led the way toward great wealth and progress throughout the world as well as at home. Since we have lost our confidence in the principles of liberty, self reliance, hard work and frugality, and instead took on empire building, financed through inflation and debt, all this has changed. This is indeed frightening and an historic event.
The problem we face is not new in history. Authoritarianism has been around a long time. For centuries, inflation and debt have been used by tyrants to hold power, promote aggression, and provide “bread and circuses” for the people. The notion that a country can afford “guns and butter” with no significant penalty existed even before the 1960s when it became a popular slogan. It was then, though, we were told the Vietnam War and a massive expansion of the welfare state were not problems. The seventies proved that assumption wrong.
Today things are different from even ancient times or the 1970s. There is something to the argument that we are now a global economy. The world has more people and is more integrated due to modern technology, communications, and travel. If modern technology had been used to promote the ideas of liberty, free markets, sound money and trade, it would have ushered in a new golden age—a globalism we could accept.
Instead, the wealth and freedom we now enjoy are shrinking and rest upon a fragile philosophic infrastructure. It is not unlike the levies and bridges in our own country that our system of war and welfare has caused us to ignore.
I’m fearful that my concerns have been legitimate and may even be worse than I first thought. They are now at our doorstep. Time is short for making a course correction before this grand experiment in liberty goes into deep hibernation.
There are reasons to believe this coming crisis is different and bigger than the world has ever experienced. Instead of using globalism in a positive fashion, it’s been used to globalize all of the mistakes of the politicians, bureaucrats and central bankers.
Being an unchallenged sole superpower was never accepted by us with a sense of humility and respect. Our arrogance and aggressiveness have been used to promote a world empire backed by the most powerful army of history. This type of globalist intervention creates problems for all citizens of the world and fails to contribute to the well-being of the world’s populations. Just think how our personal liberties have been trashed here at home in the last decade.
The financial crisis, still in its early stages, is apparent to everyone: gasoline prices over $4 a gallon; skyrocketing education and medical-care costs; the collapse of the housing bubble; the bursting of the NASDAQ bubble; stockmarkets plunging; unemployment rising;, massive underemployment; excessive government debt; and unmanageable personal debt. Little doubt exists as to whether we’ll get stagflation. The question that will soon be asked is: When will the stagflation become an inflationary depression?
There are various reasons that the world economy has been globalized and the problems we face are worldwide. We cannot understand what we’re facing without understanding fiat money and the long-developing dollar bubble.
There were several stages. From the inception of the Federal Reserve System in 1913 to 1933, the Central Bank established itself as the official dollar manager. By 1933, Americans could no longer own gold, thus removing restraint on the Federal Reserve to inflate for war and welfare.
By 1945, further restraints were removed by creating the Bretton-Woods Monetary System making the dollar the reserve currency of the world. This system lasted up until 1971. During the period between 1945 and 1971, some restraints on the Fed remained in place. Foreigners, but not Americans, could convert dollars to gold at $35 an ounce. Due to the excessive dollars being created, that system came to an end in 1971.
It’s the post Bretton-Woods system that was responsible for globalizing inflation and markets and for generating a gigantic worldwide dollar bubble. That bubble is now bursting, and we’re seeing what it’s like to suffer the consequences of the many previous economic errors.
Ironically in these past 35 years, we have benefited from this very flawed system. Because the world accepted dollars as if they were gold, we only had to counterfeit more dollars, spend them overseas (indirectly encouraging our jobs to go overseas as well) and enjoy unearned prosperity. Those who took our dollars and gave us goods and services were only too anxious to loan those dollars back to us. This allowed us to export our inflation and delay the consequences we now are starting to see.
But it was never destined to last, and now we have to pay the piper. Our huge foreign debt must be paid or liquidated. Our entitlements are coming due just as the world has become more reluctant to hold dollars. The consequence of that decision is price inflation in this country—and that’s what we are witnessing today. Already price inflation overseas is even higher than here at home as a consequence of foreign central bank’s willingness to monetize our debt.
Printing dollars over long periods of time may not immediately push prices up–yet in time it always does. Now we’re seeing catch-up for past inflating of the monetary supply. As bad as it is today with $4 a gallon gasoline, this is just the beginning. It’s a gross distraction to hound away at “drill, drill, drill” as a solution to the dollar crisis and high gasoline prices. Its okay to let the market increase supplies and drill, but that issue is a gross distraction from the sins of deficits and Federal Reserve monetary shenanigans.
This bubble is different and bigger for another reason. The central banks of the world secretly collude to centrally plan the world economy. I’m convinced that agreements among central banks to “monetize” U.S. debt these past 15 years have existed, although secretly and out of the reach of any oversight of anyone—especially the U.S. Congress that doesn’t care, or just flat doesn’t understand. As this “gift” to us comes to an end, our problems worsen. The central banks and the various governments are very powerful, but eventually the markets overwhelm when the people who get stuck holding the bag (of bad dollars) catch on and spend the dollars into the economy with emotional zeal, thus igniting inflationary fever.
This time—since there are so many dollars and so many countries involved—the Fed has been able to “paper” over every approaching crisis for the past 15 years, especially with Alan Greenspan as Chairman of the Federal Reserve Board, which has allowed the bubble to become history’s greatest.
The mistakes made with excessive credit at artificially low rates are huge, and the market is demanding a correction. This involves excessive debt, misdirected investments, over-investments, and all the other problems caused by the government when spending the money they should never have had. Foreign militarism, welfare handouts and $80 trillion entitlement promises are all coming to an end. We don’t have the money or the wealth-creating capacity to catch up and care for all the needs that now exist because we rejected the market economy, sound money, self reliance and the principles of liberty.
Since the correction of all this misallocation of resources is necessary and must come, one can look for some good that may come as this “Big Even” unfolds.
There are two choices that people can make. The one choice that is unavailable to us is to limp along with the status quo and prop up the system with more debt, inflation and lies. That won’t happen.
One of the two choices, and the one chosen so often by government in the past is that of rejecting the principles of liberty and resorting to even bigger and more authoritarian government. Some argue that giving dictatorial powers to the President, just as we have allowed him to run the American empire, is what we should do. That’s the great danger, and in this post-911 atmosphere, too many Americans are seeking safety over freedom. We have already lost too many of our personal liberties already. Real fear of economic collapse could prompt central planners to act to such a degree that the New Deal of the 30’s might look like Jefferson’s Declaration of Independence.
The more the government is allowed to do in taking over and running the economy, the deeper the depression gets and the longer it lasts. That was the story of the 30ss and the early 40s, and the same mistakes are likely to be made again if we do not wake up.
But the good news is that it need not be so bad if we do the right thing. I saw “Something Big” happening in the past 18 months on the campaign trail. I was encouraged that we are capable of waking up and doing the right thing. I have literally met thousands of high school and college kids who are quite willing to accept the challenge and responsibility of a free society and reject the cradle-to-grave welfare that is promised them by so many do-good politicians.
If more hear the message of liberty, more will join in this effort. The failure of our foreign policy, welfare system, and monetary policies and virtually all government solutions are so readily apparent, it doesn’t take that much convincing. But the positive message of how freedom works and why it’s possible is what is urgently needed.
One of the best parts of accepting self reliance in a free society is that true personal satisfaction with one’s own life can be achieved. This doesn’t happen when the government assumes the role of guardian, parent or provider, because it eliminates a sense of pride. But the real problem is the government can’t provide the safety and economic security that it claims. The so-called good that government claims it can deliver is always achieved at the expense of someone else’s freedom. It’s a failed system and the young people know it.
Restoring a free society doesn’t eliminate the need to get our house in order and to pay for the extravagant spending. But the pain would not be long-lasting if we did the right things, and best of all the empire would have to end for financial reasons. Our wars would stop, the attack on civil liberties would cease, and prosperity would return. The choices are clear: it shouldn’t be difficult, but the big event now unfolding gives us a great opportunity to reverse the tide and resume the truly great American Revolution started in 1776. Opportunity knocks in spite of the urgency and the dangers we face.
Let’s make “Something Big is Happening” be the discovery that freedom works and is popular and the big economic and political event we’re witnessing is a blessing in disguise
Friedman Billings upgraded JEC citing valuation. Target $100
Jacobs Engineering-JEC added to Conviction Buy List; maintain Buy@GSCO
**PREPARE FOR WW3** BOYS
http://www.youtube.com/watch?v=_SlIHqdVEmc&sdig=1
There she Blows!
Only a stupid fuck would hold stocks over the weekend. Iran is doing an Oil Enema to the Dow!!! Like I said Fuckers. This time It is NOT funny.
The best part of waking up, is Shit Storm in your cup!
Welcome to the end of the world.
Day of Reckoning is here.
Christ almighty — anyone who didn’t think 8 — EIGHT! years of Bush was going to end in the complete and utter annihilation of this country is on crack. All his buddies ran loose and stole from the piggy jar. Just like Bush stole from Texas taxpayers to make his first millions.
And thus the rich got richer. I can see the FNM management now… packing up their things in a little box and making sure their fat severance check gets mailed to the correct summer home. Disconnect the email… steal a few pens, and go.
Sorry I woke up. I’m off to take a nap. Wake me up when the politicians (both Dems and Repub.) figure out that they are part of the problem (gonna be a long nap).
July 10 (Bloomberg) — Fannie Mae and Freddie Mac, the largest buyers of U.S. home loans, are too big for the government to let them fail, leading Republican and Democratic lawmakers said.
“They must not fail,” McCain said today during a campaign stop in Belleville, Michigan. Fannie Mae and Freddie Mac “are vital to Americans’ ability to own their own homes,” he said at an earlier stop in the state, one of the worst affected by the surge in foreclosures.
What a dumb fucking idiot Mccain is. Dumb, old fucking man.
S&P futures somehow holding yesterdays lows.
CubsRock- I am watching this, also. Could be a classic buying opportunity? Probably only for nimble daytrading fingers.
They’re gonna puke ’em up today. VIX will spike. This is the day everyone has been waiting for.
Reach down, make sure your balls are still there, and buy with both hands.
Whenever I check my monitors and the first thing I feel is fear, I know a bottom is coming sooner rather than later.
-DT
DickBove- I would like to buy but Jesse Jackson took my balls.
You know, you’re not only a douchebag but you’re a dumbass douchebag.
YF-KNOT take your profits if your are in it still. There was a one yen drop already and I do not know who or what is going to use it next. It’s a funding currency for our market moves, and since it’s going through ovenight repos, liquidity injections have to be repaid in the overnight. When the tape runs wild like it did yesterday, the carry trade will have to repaid after it moves our tape.
Someone get that rally monkey off life support.
Douchebag, don’t be a douchebag. Blaming this recent bullshit on Bush is like blaming cancer on General Electric because they made PCB’s. Bush was still scanning the baseball hot stove sheets when Greenspan got this ball rolling. You’ve had your fifteen years of fun, now bend over and stop whining.
If you want to yell at someone, your douchebag buddies have held Congress since 2006. Maybe they can nationalize the petrol industry as their next strategic move?
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How long ago did I warn y’all about FNM & FRE ? Its not like it was from yesterday to today, like Cramer.
Lets just say that I’m a richer asshole with a bowtie today. Not like I needed another falling dollar.
What’s Obama’s response on nationalizing Fred and Fan?
Oooh, let me guess?
It’s politics, fucktards, not economics.
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Reach down, make sure your balls are still there, and buy with both hands.
I guess I should be astounded that this not only was published, but that it’s (as of right now) received 2 karma “snaps up in a circle.”
But I’m not.
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Whenever I check my monitors and the first thing I feel is fear, I know a bottom is coming sooner rather than later.
So, too, the demise of the sun.
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The best part of waking up, is Shit Storm in your cup!
We hope the cheap laughs and karma points were worth it, bitch.
Did you think brand equity grew on trees?
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Good advice Calvino. Awaiting further instructions.
Quick, somebody create a “Selloff Monkey” vid. You need 1) a picture of dead, bloody monkey carcass and 2) a droning, dreary funeral dirge for a soundtrack, perhaps with some human bloodcurdling screaming thrown in the mix. Make me proud!
Guys on the floor want to push this to $150 before the weekend so it will be the new support level and not the resistance. This is just what I am being told.
Awesome idea!
Please, put him in a Red Sox jersey this time?
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It’s becoming obvious that Martay has decided to settle scores with the Brothers and they are now doomed. 20% down in the open. whoa
I made an EPIC FAIL CALL yesterday.
What was the question?
$VIX getting closer…
Banks like FITB,HCBK are daytrade buys.
Doan worry! …. Be heppy!
Grabbed some FRE calls on the cheap.
Double top on DBC? Sucks I can’t borrow any shares to short.
RF will go to zero.
Check out the chart of DV … looking precarious.
Adding STI as a bank to daytrade long.
Gotta be quick though. Like a Spitzer “in and out.”
FED under $5!
Thanks Duc!
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Ditto to Duc.
Homies coming off bottom.
LEH putting up “the old college try.”
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LEH is like Rice Univ. (football team). Better at astro physics than winning.
Ahem!
Ahem hem!
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Serious comment…. if that was Buffet buying all that FNM at 9:35 and 9:40, there’s been an inside phone call made, no question about it.
No once catches a falling knife in that size that early like that.
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Interesting “too big to fail” morning pop from the open on FNM and FRE. Even if the government develops a full-bore “mortgage welfare” program, it will take a few weeks to shove the legislation through Congress.
While all that Fannie and Freddie paper is frozen in uncertainty, it would seem like a tough time for a market rally. So, this pop is puzzling. Trying to keep an open mind.
sell clf
Friends, if the douchebags decide to socialize FNM, wave/waive goodbye to bonds, and the buck. Oil to 200
update.. bimbo tv is threatening to bring on Killer Hank. are you ready to bail or get run over by the PPT
worthless thought of the day .. and every day for that matter
we’re getting closer to the bottom !
no, really
Those morons can’t even run their cafeteria let alone FNM,etc.
Calvino, agreed. Adding 5T to the national debt would be fucktarded.
Anyone got a youtube of the ending to Fight Club?
BYD is continuing its trek to $0. It just goes down 5%, 6%, 7%, every day.
The chart looks like a roadmap from Seattle to Miami.
Where’s Fan? I feel like hitting that fucker.
worthless thought of the day .. and every day for that matter
we’re getting closer to the bottom !
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This is only logical, actually.
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Satan’s Small Dog —
Those directions may detour to Mexico City.
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