The Bush Administration tried multiple time to increase regulation on Fannie Mae and was blocked every time by degenerate Barney Frank.
http://www.youtube.com/watch?v=hxMInSfanqg ************************************************* I'm Surviving The Obama Depression http://www.cafepress.com/rightwingmike/6535062 --- On Thu, 3/12/09, Leland F. Jackson, CPA <[email protected]> wrote: > From: Leland F. Jackson, CPA <[email protected]> > Subject: Re: [OT] Billions to Dubai > To: "ProFox Email List" <[email protected]> > Date: Thursday, March 12, 2009, 2:53 PM > Michael Madigan wrote: > > These idiots didn't learn anything when Orange > County California went bankrupt a bunch of years ago by > buying derivatives. > > > > "Those who do not learn from history are doomed to > repeat it" -- George > Santayana > > There are many other booms and busts, similar to what has > happened > recently, going back further than the Orange County, CA > 1994 bankruptcy > that was caused by credit derivative speculation. I feel > the bulk of > the blame for the current credit crisis should be placed at > the feet of > the Bush Administration, who was running the USA economy > like a giant > ponzi scheme to repress an economic downturn and to foster > support for a > never ending war on terror to grab power and subdue the ME > for the > protection of Israel. > > If the GOP/Bush Administration efforts to privatize social > security had > succeeded, the ponzi scheme would have lasted much longer, > but the > inevitable bust would have likely destroyed the country > when the bubble > finally burst. > > http://www.balloon-juice.com/?p=18498 > > Regards, > > LelandJ > > > > ************************************************* > > I'm Surviving The Obama Depression > > > > http://www.cafepress.com/rightwingmike/6535062 > > > > > > --- On Thu, 3/12/09, Nicholas Geti > <[email protected]> wrote: > > > > > >> From: Nicholas Geti <[email protected]> > >> Subject: Re: [OT] Billions to Dubai > >> To: "ProFox Email List" > <[email protected]> > >> Date: Thursday, March 12, 2009, 10:21 AM > >> OMyGosh. How can anyone buy into instruments like > that? They > >> are > >> incomprehensible to me. And now it looks like the > pros > >> couldn't even figure > >> it out. > >> > >> > >> ----- Original Message ----- > >> From: "Leland F. Jackson, CPA" > >> <[email protected]> > >> To: "ProFox Email List" > <[email protected]> > >> Sent: Wednesday, March 11, 2009 7:50 PM > >> Subject: Re: [OT] Billions to Dubai > >> > >> > >> > >>> This probably has to do with Cedit Default > Swaps, (eg > >>> > >> CDS(s)). The > >> > >>> primary lenders, like Citigroup, make short > term loans > >>> > >> to secondary > >> > >>> lenders like Savings and Loans, (eg Mortgage > >>> > >> Companies). The secondary > >> > >>> lenders use the short term loans from the > primary > >>> > >> lenders to create long > >> > >>> term mortgages. The secondary lenders make > money on > >>> > >> the interest spread > >> > >>> between low interest rates paid for short term > >>> > >> borrowing form the > >> > >>> primary lender and the high interest earned on > long > >>> > >> term mortages they > >> > >>> write, (eg Real Estate Investment Trusts or > REIT). > >>> > >>> Usually the terms of the loans from the > primary lender > >>> > >> required the > >> > >>> secondary lender, (eg Mortgage Companies), to > >>> > >> maintain collateral > >> > >>> levels based on a margins of the short term > loan > >>> > >> values. As the values > >> > >>> of houses started falling with a corresponding > >>> > >> decrease in the value of > >> > >>> the mortgages in the hand of the secondary > lenders, > >>> > >> the primary lenders, > >> > >>> (eg Banks like Citigroup and AIG), started > making > >>> > >> margin calls on the > >> > >>> secondary lenders asking them to put up the > money > >>> > >> needed to meet the > >> > >>> collateral margins as per the loan agreements. > Many > >>> > >> secondary lenders > >> > >>> were caught with their pants down, and did not > have > >>> > >> the liquidity needed > >> > >>> to meet the collateral margin requirements to > the > >>> > >> primary lenders, > >> > >>> which put many secondary lenders out of > business, (eg > >>> > >> TMA or Thornburg > >> > >>> Mortgage as an example). > >>> > >>> Most of the secondary lenders also purchased > Credit > >>> > >> Default Swaps, (eg > >> > >>> CDS), from the primary lenders. A CDS > transfers, or > >>> > >> swaps, the risk of > >> > >>> a mortgage default from the secondary lender > to the > >>> > >> primary lender, and > >> > >>> the secondary lender pays a fee to the primary > lender > >>> > >> for assuming this > >> > >>> risk. > >>> > >>> So, as home owners began defaulting on their > >>> > >> mortgages, the primary > >> > >>> lender were required to pay of the default > mortgages > >>> > >> in the hands of the > >> > >>> secondary lenders under the CDS contracts, and > the > >>> > >> secondary lenders > >> > >>> transferred, or swapped, the toxic mortgages, > which > >>> > >> were in default, to > >> > >>> the primary lender. Thus, the primary lenders > ended > >>> > >> up holding the bag > >> > >>> and taking the hits. > >>> > >>> It's likely the payments to Dubia were to > settle > >>> > >> CDS obligations. > >> > >>> Regards, > >>> > >>> LelandJ > >>> > >>> Nicholas Geti wrote: > >>> > >>>> Just heard on CNBC this morning that > Congress is > >>>> > >> starting hearings today > >> > >>>> about why Citigroup and other banks sent > $4B of > >>>> > >> the first round of TARP > >> > >>>> funds to Dubai. It was supposed to help > Americans. > >>>> > >>>> > >>>> --- StripMime Report -- processed MIME > parts --- > >>>> multipart/alternative > >>>> text/plain (text body -- kept) > >>>> text/html > >>>> --- > >>>> > >>>> [excessive quoting removed by server] _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[email protected] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
