Tuesday, September 14, 2010

Fear Of The Corporate News Media Makes Us Ignorant?

“The Big Short” by Michael Lewis

Page numbers are from “The Big Short”  hard cover version 1st edition.

The home and or second home is “underwater” and the owner walks away.

Bank puts a paper in the window of the house or CA state office building saying the home has been reprocessed by the bank.
See LA Times, 9-11-10, page AA1, “$2.2 Billion from a consortium to buy 24 state office buildings.

Bank gets Government grant money to help small business in the area.

Bank uses the money for contractors to make improvements to the homes and CA state office buildings.

Improvements increase the value just enough to get a higher false loan rating, AGAIN. P. 50 & 73.

Bankers packages the newly rated buildings and try to sell these derivatives to hedge funds.

Hedge fund, investor or consortium says thank you very much and buys the small bank(s) and their newly rated derivatives which are insured of course.
See LA Times 9-9-10, Investors snapping up small banks, By Scott Reckard.

Large Wall Street banks buy groups of these Hedge funds and or derivatives and packages them into bonds.

These derivative bonds are bought, sold, and made legal by bond technicians page 72 and approved by ISDA  and other Global Financial Regulators.

These derivative bonds are valued based on what you can sell them for.  Their is no set price even if they contain U.S. Treasury bonds mixed in the derivative. page 62.

Remember the I in ISDA stands for International and the other 3 letters sand for whatever.  What ever the bond technicians dream up, example, CDO.  Page 72.

The fear of the corporate news media, page 62, makes us ignorant Americans, thus we must think that our government / politicians must honor these ISDA and Global financial regulators rules just because the derivatives may have Treasure bonds included in a CDO? page 72. 

Treasure bonds that where Included without the Presidents knowledge and NOW us Americans must honored these Global financial rules even if it cost us our invested retirement money and having our jobs shipped over seas?  I say fight back, “America Rules for Americans.”

We are feared into thinking International Associations are good for America.  As the Republicans like to describe it, “Less Government Involvement.” Which means “Trust Wall Street”  Which means trust Global Financial Regulators and Goldman Sachs’ collateralized debt obligation, CDO, page 72.

Fight back tell “Them” what you think?  Or do you think that our American talk back has no value when compared to Goldman Sach? 

Carl G. Mueller, Nam 68

Sunday, September 12, 2010

Obama's Banking Idea

 LA Time Editorial 9-9-10, Banking on 30/10
I agree with the Editorial when compared with my understanding of the book:
“The Big Short” by Michael Lewis.
The page numbers I use below are based on the book’s hard cover version, copyright 2010, First Edition.

Editorial, first paragraph:
Obama idea:  Obama to create a national transportation infrastructure bank ...

I agree with the transportation bank idea. Except the term "Bank" should not be used.  It should be called something that does NOT have any rules or regulations or controls already in place.  I think we must stop Global financial regulators like the International Swaps and Derivatives Association (ISDA) from having controls of the rules in the World Bond Market Banking System.  Thus NOT the term "Bank"!  See  “The Big Short”, page 48, second paragraph.  Find the book at Amazon.com where you can read any part of any page.  Also read what other people think of the book.  The book was on the New York Times best sellers list for over 2 months.

Example, call the Infrastructure bank YWCI (Yes We Can Investments) Like that idea

“Big Short”  Page, 48:
International Swaps and Derivatives Association (ISDA) has the "Investment Power" of formalizing the terms of new securities /

“Big Short” Page 49:
“The ISDA agreement took months of haggling among (International) lawyers and traders from the big Wall Street firms, who would run the market.” and on page 59 it is written, "The loans were structured to go bad.

“Big Short”  Page 62:
US Treasury Bonds for example, is part of the MOST CORRUPT  of all, the Bond Market securities because:

“Bond salesmen,
say and do anything without fear that they’d be reported to some authority.”

“Bond traders, could exploit inside information without worrying that they would be caught.”

“Bond technicians, could dream up ever more complicated securities without worrying too much about government regulation, one reason why so many derivatives had been derived, one way or another, from bonds.

The foxes 
(ISDA) are not only guarding the hen house, the foxes had the task of formalizing the terms in which the hens slept outside. The hen house was also designed by the foxes and by the way, was designed to fall apart.

And now the dumb ass American hens as we should be called are having the same type foxes / ISDA regulators AGAIN formalize the terms.  I can say this because of story in LA Times, 9-11-10, page B1, Official Global  Bank Regulators meet in Swiss city of Basel, (this 9-11 weekend)  By LA Times reporter Nathaniel Popper,

In all due respect I think reporter Popper, is some what over trusting of somebody if he believes what he writes when he says that the amount of money banks have on hand is the most important rule at Basel, known as Basel III.
I say the most important talking points will be about large blue-chip companies like GE, which has traits to be able to bury exotic risks on its balance sheet, page 69-70.  

Goldman Sachs invented securities so complex they remain forever misunderstood, page 72.

I try to show Much more on these blog pages using "The Big Short".  Show what "must me known" so we can get more people to vote out the Same Old Corrupt World Banking System in our USA.  I'm not smart but I can fight!