White knight of the day … (vulg. manipulation)
Every day the same story … market heads south … on REAL data …
Today … retail sales … HORRIBLE … HFs going under … Bear Stearns about to go belly up
Then … a white knight appears … if it is not Heli-Ben it is one of his “a**kissers” …
Today … even two of them
1. S&P … the PAID for service rating agency … one of the ORIGINATORS of this crisis!!!
What do these brainless, greedy people have for us? 
They think … my comments in ()
- valuation write-downs of subprime asset-backed securities–primarily collateralized debt obligations (CDOs) of ABS but also subprime residential mortgage-backed securities (RMBS)–could reach $285 billion for the global financial sector, but that the end of write-downs is now in sight for large financial institutions. (in sight? I can see far )
- the figure is slightly higher than the $265 billion it published earlier this year because it since then has increased its assumption of percentage write-downs of high-grade CDOs of ABS with collateral from 2006 and 2007. (slightly higher 10% in some weeks … do I have to extrapolate that?)
- Based on available information, we believe that the largest players can be seen as having undertaken a rigorous valuation methodology to come up with conservative valuations (I think, I heard that before … still mark to fantasy my funny friends?)
- right now, market forces are placing further downward pressure on valuations, and we expect to see more write-downs related to these pressures in coming weeks and months ( scares me already)
- We believe that any near-term positive impact of reducing subprime risk in the financial system via increased disclosure and write-downs will be offset by worsening problems in the broader U.S. real estate market and in other segments of the credit markets (sounds bad)
- A major repricing of credit risk is taking place across the debt markets, with credit spreads having further widened in most segments since the beginning of 2008, after opening up in the second half of 2007. (WOW … I agree with that)
- If the wider spreads hold to the end of the first quarter or half of this year, financial institutions will suffer further market value write-downs of a broad range of exposures, including leveraged loans. (AUTSCH!!!)
Does that mean, that the report is not worth the paper it is printed on??? OMG
2. Barney Frank … at least my kids like his name … Barney the funny little dinosaur
What does he have for us?
Just a plan to enable the Federal Housing Administration to insure and guarantee refinanced mortgages that have been significantly written down by mortgage holders and lenders.
Ok Let’s have a look
- The plan could help refinance 1 million to 2 million loans for at-risk borrowers by permitting FHA to provide up to $300 billion in new guarantees to get borrowers into viable mortgages (300 bln? I’m impressed … he seems to be rich or has a lot of fantasy)
- In exchange for accepting a “substantial” write-down of principal, lenders or mortgage holders would receive payment from the proceeds of a new FHA loan if the restructured loan resulted in terms that the borrower can reasonably be expected to pay. (ahhh … substantial write down=poor banks … only if payment is reasonable? Worse! So just political pre- election talk, I suppose?)
If this is bullish, PLEASE let me know
It kills the banks and burdens the taxpayer and does not at all help neither the economy nor the consumers … hmmm
He Ben … what about a currency reform and free living for all? Guaranteed minimum wages and indexed prices
Hire some russian advisors … Welcome to Communism … COOL!!!
AAAAAARRRRGGGGGHHHHHHH
Tags: Barney Frank, Communism, FED, housing, manipulation, S&P
