R C Macaulay
Wed, 02 Apr 2008 19:54:32 -0700
Howdy Vorts, Ever get the feeling the govmnet may be stretching the truth about subprime mortgage actual losses. Do the math of actual true losses to the banking and lending industry on foreclosures. Using Detroit as an example,, figures reported show 10,000 homes were in the loop last quarter for foreclosing.. figure the actual loss to the lender equates 150k per home.. that's 1.5 bil loss. Multiply that figure across the nation and an estimate of under 300 bil can be a reasonable combined loss to all lending agencies. The actual loss is far below that estimate because of the asset value is tangible. So far the Fed has pumped nearly one trillion into "saving" the economy, plus lower the interest rates which adjust to some 2.3 trillion alone. All blamed on the subprime mess.. it ain't true! Where did the money go? The losses claimed by news reports DO NOT ADD UP. Looking at Bear Stearns , we learn that money people were borrowing 90% of stock value to buy stocks and securities. Some reports indicate the fast buck guys were putting up 1 mil to finance a bil in stock purchases. making a killing on the spread and repeating the process.. margin calls put the speculators in real jeapardy and as the pyramid began to topple, people like Bear Stearns wound up with some 500 billion in unrecovered loans outstanding and stock prices plummeting when the Dow dropped from 14 to 12. Anyway you figure there was some 5-25 trillion losses with a 2000 point Dow spread. This is where the losses are and not the subprime.. sumbuddys blowing smoke and it's name is chairman budinski. Turning the SEC over to the Fed is tantamount to the fox guarding the henhouse.. or letting the Houston welfare office keep their own books. Meanwhile back at the ranch, our employees are enrolled in a supposed "annuity plan" developed by Fortis Benefit Guaranty Corp.. well.. err.. it seems this was gerramandered into a sorta 401 k instead of a annuity insurance when Fortis went to Holland and sold the pig to Hartford Insurance, and now to Edward Jones.. and its keyed to the mutuals. A simple statement on actual worth of a typical " annuity" with contributions of 2,000.00 per year ( the company forks over the money) now looks like the us dollar vs the Euro. And the solution offered by the US govment.. lets combine and put everything under the Fed, a private business owned by 12 banks.. well used to be US banks but.. The reason?? because the Fed has demonstrated thier ability to think above the problem.. which to Texans mean throw enough money at the problem to create a bigger problem and forget the first. Richard