American's don't care about homes, but wealth.

To all of those who talk about American homeownership being a right or some entitlement or something like that...to anyone who 'feels the pain' of homeowners being foreclosed upon, or is one of them, I have a message for you:

Americans don't care about being homeowners. They don't. They couldn't care less if they actually owned the house, the land, or anything else for that matter.

Americans want to be, strive to be and care about being wealthy. They will do, buy, or act in just about any fashion to cause this to happen. If they could be financially dependent, wealthy, etc. from buying and selling tulips, they would do this.

Americans look at homes, and treat them, as an investment. Period. Any investment has risk. Investors should know about risk and uncertainty. They should also know that sometimes they lose. And be prepared for it.

As for the rest of the world pointing at this mess starting in, and being caused by the US; poor lending, poor oversight, corruption, collusion, ratings agencies not doing their job the list goes on, I say to the rest of the world, "Take responsibility for your actions, too."

When they were buying MBS reportedly rated as AAA they didn't see those securities were based on US homes, mostly in CA that were increasing in value at astronomical rates by historical standards?

Come on. Take some responsibility.

J

JAllen Radio (light humor) “Sucker goin’ down, Part II”

JAllen: “We’ve got a breaking and special story for you today folks! JAllen radio is live on board the Big Bush Boat after being hit by a “torpedo-type-thingy” fired from this very boat! The boat is now taking on water as “the crew” try to deal with the impending sinking.

JAllen: “The Crew” include: Benni and Hanky, Roubini, Mr. Mortgage, and others.

JAllen: “Bennie, have you got this under control?”

Bennie: “You see this button? (winks) I can push this button and this here machine will churn out a bunch of rags…an infinite number of rags if I want. And Hanky will use those rags to mop up. Right, Hank?”

Hank: “I need more rags to mop with! This is not enough. I’m mopping, I’m bailing, I’m shimmering and shaking, but the water I toss overboard just comes right back in! Bennie! MORE RAGS!!”

JAllen: “Cap’n Bush, what do you have to say?”

Cap’n Bush: “Torpedo me once…shame…shame on…Bennie, you’re doin’ a heckuva job”

JAllen: “Roubini, what is being done and what do you need to do to stop this sucker goin’ down?”

Roubini: “First of all, I knew this was coming! I said this would happen! What this Hank and Bennie are doing…this mopping…will never work. There are twelve things we need to do…If you want to know how to fix it, first you need to register at info@rgemonitor.com.

JAllen: Hank, how is the mopping going?

...to be continued

from Mr. Mortgage: fedwatcher post

1. fedwatcher Said:
   October 1st, 2008 1:38 am

   We Cannot Handle The Truth

   What we have here is a failure to communicate.

   The facts are that the debt levels of the U.S.A., U.K., Ireland, Spain, Italy, Australia, New Zealand, Canada, and many other European and ‘advanced’ economies are too large to be serviced by the income these economies generate.

   There are only two ways out of this:
   1.) Debt destruction through default leading to a severe recession or depression after which normal and stable growth can resume.
   2.) Postponing the problem by the creation of new debt with inflationary results and the eventual necessity of having the above occur latter.

   We must pass through debt destruction now or take on more debt and go through a much larger debt destruction latter.

   That is the choice. All the other posturing and spin is bull feces.

   Paulson and Bernanke and Cox and Bush and Wall Street and the House Leadership and the Senate Leadership, all hoped they could ‘contain’ the problem until after November 4th.

   The only rational solution is the Irish Solution, that is protect depositors and thus stop the bank runs, and let investors take a bath.

   Dow 8,000 will happen sooner or latter. It is better sooner than latter.

Slow Screw Part Two - becomes Fast Screw for You

In 10th grade I made a report on the great depression, and one of the passages I remember best was about a stockbroker, who, while watching the market tank and while losing everything he had invested, cried, "More Margin, more Margin!"

He needed more "margin," or "leverage." Credit.

The truth of the matter is that at the heart of the Great Depression was a credit bubble, much like we have today. And the truth is that only an enormous amount of financial pain for everyone will bring us back to reality. Sooner, the better, right? Dragging this out much longer through bailouts, stimulus packages, etc. only prolongs the pain and the problem. But this is the path we are choosing.

It's like having a sore tooth where the patient spends months eating on the other side of his mouth. But the tooth will not stop hurting until it falls out, or until the patient sees a dentist. The dentist causes some initial pain, but saves the tooth. I'm afraid we're in the process of losing some teeth.

Ben Bernanke knows this. He has prepared for it for decades. The irony is he's a student of the Depressionl. Why isn't he fixing it? Why is it getting worse? He's eating on the other side of his mouth.

Paulson wants to give his buddies (and himself) some Novocaine, cocaine and a get out of jail free card and splash some expensive moonshine on our collective, painful molars.

In my earlier Post, "Slow Screw", I talked about the unfortunate, declining standard of living over the past several generations. It would be sad, except for the fact that we're getting what we deserve. That makes it sad, but equitable.

J

JAllen Radio - "Is this sucker going down?"

JAllen Radio: (light humor)

JAllen: Tonight we are discussing "Is this sucker going down, or not?" I'm back today with my usual distinguished guests, Mike Shedlock (Mish), Mr. Mortgage, Patrick of patrick.net and Nouriel Roubini (hisssss!). Patrick, we start with you. Is the sucker going down, or not?

Patrick: Of course, anyone who buys now will suffer losses immediately, and for the next several years at least, as the sucker goes down to come into line with tighter lending and stagnant salaries.

Mish: Me thinks not. It's time to Take Back this Sucker from those who want this sucker to go down at taxpayer expense. Please keep phoning and faxing.

JAllen: Mr. Mortgage, what do you think?

Mr. Mortgage: Any sucker going down will add a large amount of inventory to an already pounded market in the West Coast. This will be caused by Meredith Whitney scaring the crap out of everyone.

Roubini: It is a disgrace that no professional economist was consulted by Congress. I have been predicting the downing of the socialist sucker since 2001. I predict this sucker could very well go down...especially if money isn't loosened up.

JAllen: We have a SURPRISE guest, former governor of NY, Eliot Spitzer. Governor, what's your take?

Spitzer: I've already paid too much for too many suckers going down.

JAllen: Well, there you have it.

Who to Fire?

Dukes of Moral Hazard

Bazooka Hank
Moral Hazard Hank
Squirt Gun Hank

Whirly Ben
Uncle Ben
Bailout Ben
Printing Press Ben

WRAPUP 3-US Treasury, Congress ramp up bank bailout talks

(from Reuters with my comments)

* Negotiations ramp up between Treasury, Congress

My comment: The spineless democrats prepare to agree to anything.

* Treasury chief: plan needed to shield economy, taxpayer

My comment: plan will screw economy, taxpayer

* Lawmakers say aim to pass plan by end of week

My comment: Lawmakers want to go on vacation

* Democrats want help for homeowners, taxpayer protections (Recasts; adds comments by Pelosi, Schumer, Dodd; background)

My comment: Homeowners want out of their overpriced homes and mortgages. 700 billion added to taxbill does not protect taxpayers

WASHINGTON, Sept 21 (Reuters) - The Bush administration and Congress on Sunday ramped up talks on an unprecedented $700 billion bank bailout as they battled the clock to prevent further financial market turmoil that risks hurtling the economy into a deep and damaging recession.

My comment: News flash, the economy is already in a deep and damaging recession.

The plan for the largest-ever bank rescue would give sweeping powers to the U.S. Treasury to buy up toxic mortgage-related debt from financial firms, including U.S. subsidiaries of foreign banks.

My comment: Paulson trades his bazooka for neutron bomb.

The plan for the largest-ever bank rescue would give sweeping powers to the U.S. Treasury to buy up toxic mortgage-related debt from financial firms, including U.S. subsidiaries of foreign banks.

My comment: "...so that no bank is left behind."

"This is a new phenomenon for every major player in this place and there are no dress rehearsals. That is why the market is so jittery. This has to work the first time," said Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey.

My comment: The market is jittery because it needs another bailout fix.

J

No Bank Left Behind

...And not even foreign banks.

Nobody can fail! Well, isn't that special.

1. Who was supposed to be scanning the horizon, looking for problems in the financial industry?
2. If we knew there were problems, when did we know and what were we doing about them?
3. Who is being held accountable for this? Where does the buck (1.2 Trillion bucks) stop?

It seems the way we run our country is that we wait for a disaster to happen, and then run around trying to do something about it. No, it's even worse than that. Disasters have been happening that we knew were coming. We watched them arrive. Watched them hit. Then we run around with our hair on fire, giving obscene authority to the people who were supposed to be watching out for (and avoiding) the problems.

Serves us right.


Heckuva Job Paulie!
Heckuva Job Rummie!
Heckuva Job Brownie!
Heckuva Job Ricey! ...no wait, she hasn't done anything.

What a miserable failure of an administration.

J

How did we get here? Glass-Steagall Act repealed by Republicans -- and you will know their names

The mess was largely caused by the repeal of the Glass-Steagall Act.

Find the Vote here

I'll help you with this REPUBLICAN BUBBLE MAKER:

Vote [Sort]	State [Sort]	Representative [Sort by Name] [Sort by Party]
Alabama
Aye	AL	Sessions, Jefferson [R]
Aye	AL	Shelby, Richard [R]
Alaska
Aye	AK	Murkowski, Frank [R]
Aye	AK	Stevens, Ted [R]
Arizona
Aye	AZ	Kyl, Jon [R]
Aye	AZ	McCain, John [R]
Arkansas
Aye	AR	Hutchinson, Tim [R]
Nay	AR	Lincoln, Blanche [D]
California
Nay	CA	Boxer, Barbara [D]
Nay	CA	Feinstein, Dianne [D]
Colorado
Aye	CO	Allard, Wayne [R]
Aye	CO	Campbell, Ben [R]
Connecticut
Nay	CT	Dodd, Christopher [D]
Nay	CT	Lieberman, Joseph [I]
Delaware
Aye	DE	Roth, William [?]
Nay	DE	Biden, Joseph [D]
Florida
Aye	FL	Mack, Connie [?]
Nay	FL	Graham, Bob [D]
Georgia
Aye	GA	Coverdell, Paul [?]
Nay	GA	Cleland, J. [D]
Hawaii
Nay	HI	Akaka, Daniel [D]
Nay	HI	Inouye, Daniel [D]
Idaho
Aye	ID	Craig, Larry [R]
Aye	ID	Crapo, Michael [R]
Illinois
Nay	IL	Durbin, Richard [D]
Present	IL	Fitzgerald, Peter [R]
Indiana
Aye	IN	Lugar, Richard [R]
Nay	IN	Bayh, B. [D]
Iowa
Aye	IA	Grassley, Charles [R]
Nay	IA	Harkin, Thomas [D]
Kansas
Aye	KS	Brownback, Samuel [R]
Aye	KS	Roberts, Pat [R]
Kentucky
Aye	KY	Bunning, Jim [R]
Aye	KY	McConnell, Mitch [R]
Louisiana
Nay	LA	Breaux, John [D]
Nay	LA	Landrieu, Mary [D]
Maine
Aye	ME	Collins, Susan [R]
Aye	ME	Snowe, Olympia [R]
Maryland
Nay	MD	Mikulski, Barbara [D]
Nay	MD	Sarbanes, Paul [D]
Massachusetts
Nay	MA	Kennedy, Edward [D]
Nay	MA	Kerry, John [D]
Michigan
Aye	MI	Abraham, Spencer [?]
Nay	MI	Levin, Carl [D]
Minnesota
Aye	MN	Grams, Rod [?]
Nay	MN	Wellstone, Paul [D]
Mississippi
Aye	MS	Cochran, Thad [R]
Aye	MS	Lott, Trent [R]
Missouri
Aye	MO	Ashcroft, John [?]
Aye	MO	Bond, Christopher [R]
Montana
Aye	MT	Burns, Conrad [R]
Nay	MT	Baucus, Max [D]
Nebraska
Aye	NE	Hagel, Charles [R]
Nay	NE	Kerrey, J. [?]
Nevada
Nay	NV	Bryan, Richard [?]
Nay	NV	Reid, Harry [D]
New Hampshire
Aye	NH	Gregg, Judd [R]
Aye	NH	Smith, Bob [R]
New Jersey
Nay	NJ	Lautenberg, Frank [D]
Nay	NJ	Torricelli, Robert [D]
New Mexico
Aye	NM	Domenici, Pete [R]
Nay	NM	Bingaman, Jeff [D]
New York
Nay	NY	Moynihan, Daniel [?]
Nay	NY	Schumer, Charles [D]
North Carolina
Aye	NC	Helms, Jesse [R]
Nay	NC	Edwards, John [D]
North Dakota
Nay	ND	Conrad, Kent [D]
Nay	ND	Dorgan, Byron [D]
Ohio
Aye	OH	DeWine, Michael [R]
Aye	OH	Voinovich, George [R]
Oklahoma
Aye	OK	Nickles, Don [R]
No Vote	OK	Inhofe, James [R]
Oregon
Aye	OR	Smith, Gordon [R]
Nay	OR	Wyden, Ron [D]
Pennsylvania
Aye	PA	Santorum, Richard [R]
Aye	PA	Specter, Arlen [R]
Rhode Island
Aye	RI	Chafee, John [?]
Nay	RI	Reed, John [D]
South Carolina
Aye	SC	Hollings, Ernest [D]
Aye	SC	Thurmond, J. [R]
South Dakota
Nay	SD	Daschle, Thomas [D]
Nay	SD	Johnson, Tim [D]
Tennessee
Aye	TN	Frist, William [R]
Aye	TN	Thompson, Fred [R]
Texas
Aye	TX	Gramm, Phil [R]
Aye	TX	Hutchison, Kay [R]
Utah
Aye	UT	Bennett, Robert [R]
Aye	UT	Hatch, Orrin [R]
Vermont
Aye	VT	Jeffords, James [I]
Nay	VT	Leahy, Patrick [D]
Virginia
Aye	VA	Warner, John [R]
Nay	VA	Robb, Charles [?]
Washington
Aye	WA	Gorton, T. [?]
Nay	WA	Murray, Patty [D]
West Virginia
Nay	WV	Byrd, Robert [D]
Nay	WV	Rockefeller, John [D]
Wisconsin
Nay	WI	Feingold, Russell [D]
Nay	WI	Kohl, Herbert [D]
Wyoming
Aye	WY	Enzi, Michael [R]
Aye	WY	Thomas, Craig [R]