Archive for the Category »Monetary Policy «

Tea Party Darling Paul Ryan – typical politican

Proving once again the old adage: government creates the problem, then volunteers to solve it for you, at a cost of course. The tea party’s latest darling, Paul Ryan – WI, R, takes a swing and a miss on political consistency and the budget.

While better late than never in trying to reduce the size and scope of the budget as well as the deficit, let’s not forget that it was Paul Ryan who was part of the problem in growing government and the deficit.  Ryan has supported the 2003 Medicare expansion, the No Child Left Behind Act, TARP, the GM & Chrysler bailouts, and ethanol subsidies.  But, hey, NOW it’s a problem, and he’s gonna fix it for you.

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Why Is There a U.S. Mint Coin Shortage?

Ron Paul wants to know! And so should you.

Daniela Cambone over at Kitco News explains:

Rep. Ron Paul, R-Texas, has one question for the U.S. Mint: why is there a coin shortage?

He is aiming to get to the bottom of this during a scheduled April 7 hearing of his U.S. House Subcommittee on Domestic Monetary Policy to examine the bullion programs at the U.S. Mint.

“We are going to try and find out what the Mint has done so they can give us a better answer as to why there is a shortage. Why can’t they keep the supply of coins up?” said the congressman in an exclusive interview with Kitco News.

Demand for precious metals in the futures markets and in physical gold bullion coins increases as the dollar weakens, which often leads to coin shortages.

Part of the problem lies in manufacturing the blanks, said Paul. The blank planchets are not made at the Mint, which hasn’t had the production capacity for this stage of the minting process since the budget cuts of 1981.

READ THE REST……….

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The foreclosure mess isn’t going away (it’s only going to get worse)

Zachary Roth over at The Lookout, a Yahoo News blog does a great job of summarizing why the foreclosure mess isn’t going away, in fact, I say it will only get worse.  Roth explains how the banks played fast and loose, if not outright violated the law, in foreclosing  on  homes.

And I particularly like sending a SWAT team to evict a little old lady.  What jackass judge signed off on that!  Just remember that the next time someone says that the actions of cops are reviewed and signed off by judges.

We’ve told you before about how big banks cut corners on paperwork over the last few years in order to speed struggling homeowners into foreclosure. And a “60 Minutes” report that aired last night offers fresh anecdotal reporting on just how irresponsible–and potentially fraudulent–the banks’ practices were. Meanwhile, compelling video of a grandmother being evicted from her home by a SWAT team last week suggests the banks aren’t slowing down their rush to foreclosure and eviction.

Banks profit by processing a vast number of homes into foreclosure as quickly as possible. But as “60 Minutes” details, many of the mortgages at issue were bundled and sold from one Wall Street investor to another during the housing boom, with scant attention paid among financial players to the actual underlying ownership documents. And as the foreclosures unwind in a slew of court proceedings nationwide, many banks have produced dubiously rendered legal documents that seek to shore up the ownership paperwork long after the original mortgage transactions were on the books. In some cases, financial institutions paid contract companies who employed an army of “robo-signers”—office workers who forged signatures on mortgage documents that were then used to initiate foreclosures.

READ THE REST………

And be sure to click through and watch the 60 Minuets piece. Oh, the bank VICE-PRESIDENTS in question, actually paid $10 an hour. Then again that’s probably all the real bank presidents are worth.

However, Roth does get thing wrong, and unfortuneatley it’s not minor!

All 50 state attorneys general are currently conducting an investigation into the foreclosure mess–including cases that involve forged documents like these. And Shelia Bair, head of the Federal Deposit Insurance Corporation, told CBS she thinks the banks should have to pay billions to set up a compensation fund for those who are being forced to accept foreclosure without proper documentation.

But if you thought all this might have chilled the banks’ zeal to push struggling borrowers from their homes, think again.

The 50 AGs are NOT looking out for you and I, they are trying to find a way to paper over and legitimize the actions of the bank.  More on that here.

The 27-page fluff-piece is now out where we can see it….

Let’s be blunt: There’s no “there” there.

The entire document is a rehash of what servicers had a legal mandate to do right up front.  Accurately apply payments.  Respond to inquiries.  Operate in good faith.  Use a NPV test for HAMP (was in the HAMP program originally.)  Document the assignment chain before foreclosing.

There’s exactly one substantive change, in that HAMP did not prohibit “dual-track” (that is, foreclosure while attempting modification.)

Essentially every other item in this 27 pages is something that Servicers already had a legal duty to do, either as a fiduciary to the investor or just through the ordinary covenant of operating in good faith (You know, the original standards that all businesses are held to that aren’t actually racketeering outfits and gangsters?  Yes, that.)

There’s no prosecution for all the bad affidavits, despite them being apparent acts of perjury.

READ THE REST………..

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Halloween Horror: Night of the Living Fed! by Fund Manager Jeremy Grantham

http://www.cnbc.com/id/39868154

Fund manager Jeremy Grantham, long a Federal Reserve critic, issued a blistering attack on Fed policies Wednesday, likening its strategy of low interest rates and monetary easing to a Halloween horror movie that is dangerous and destabilizing to the economy.

Night of the Living Fed by Jeremy Grantham

“In almost every respect, adhering to a policy of low rates, employing quantitative easing, deliberately stimulating asset prices, ignoring the consequences of bubbles breaking, and displaying a complete refusal to learn from experience has left Fed policy as a large net negative to the production of a healthy, stable economy with strong employment,” Grantham, chief  investment officer of GMO, an investment management firm in Boston said.

Grantham’s quarterly note to clients came with a mock horror movie image titled, “Night of the Living Fed: Something Unbelievably Terrifying.” Click here to read the rest of the article.

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Gotta Protect Those Bankers At All Costs You Know.

Yeah, it’s just “procedural”.  You know like filing false statements with the court, committing fraud upon the court, not actually filing proper assignments.

So just in case you thought we were a nation of laws.  We are, but just for the peons.

http://www.cnbc.com/id/39834155

FDIC Head Sounds Alarm on Foreclosure Litigation

Litigation arising from foreclosure paperwork problems could be “very damaging” to the housing market, a top U.S. banking regulator said Monday.

Federal Deposit Insurance Corp Chairman Sheila Bair said she did not believe legislation would be needed to address concerns over whether the paperworkwas properly done so long as investigations show the issue was mostly “procedural.”

State and federal officials are investigating allegations that for years banks have not reviewed foreclosure documents properly or have submitted false statements to evict delinquent borrowers.

“I fear that the litigation generated by this issue could ultimately be very damaging to our housing markets if it ends up unduly prolonging those foreclosures that are necessary and justified,” Bair told a housing conference in Arlington, Virginia.

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You mean Nancy Pelosi Lied? Or Is She Just Incompetent? Probably Both.

http://www.cnsnews.com/news/article/debt-has-increased-5-trillion-speaker-pe

Debt Has Increased $5 Trillion Since Speaker Pelosi Vowed, ‘No New Deficit Spending’

When Rep. Nancy Pelosi (D-Calif.) gave her inaugural address as speaker of the House in 2007, she vowed there would be “no new deficit spending.” Since that day, the national debt has increased by $5 trillion, according to the U.S. Treasury Department.

“After years of historic deficits, this 110th Congress will commit itself to a higher standard: Pay as you go, no new deficit spending,” Pelosi said in her speech from the speaker’s podium. “Our new America will provide unlimited opportunity for future generations, not burden them with mountains of debt.”

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Secret gov’t bailout of CITI? Go figure.

And check out the URL Bloomberg used.  FOIA meaningless?  They are just figuring that out now? Guess better late than never.

http://www.bloomberg.com/news/2010-10-25/u-s-treasury-shielding-of-citigroup-with-deletions-make-foia-meaningless.html

Treasury Shields Citigroup as Deletions Undercut Disclosure

The late Bloomberg News reporter Mark Pittman asked the U.S. Treasury in January 2009 to identify $301 billion of securities owned by Citigroup Inc. that the government had agreed toguarantee. He made the request on the grounds that taxpayers ought to know how their money was being used.

More than 20 months later, after saying at least five times that a response was imminent, Treasury officials responded with 560 pages of printed-out e-mails — none of which Pittman requested. They were so heavily redacted that most of what’s left are everyday messages such as “Did you just try to call me?” and “Monday will be a busy day!”

None of the documents answers Pittman’s request for “records sufficient to show the names of the relevant securities” or the dates and terms of the guarantees. Even so, the U.S. government considers the collection of e-mails a partial response to an official request under the federal Freedom of Information Act, or FOIA. The Justice Department in July citedan increase in such responses as evidence that “more information is being released” under the law.

President Barack Obama vowed to usher in a new era of open government. On Jan. 21, 2009, the day after his inauguration and a week before Pittman submitted his FOIA request, Obamadirected agencies to “adopt a presumption in favor of disclosure, in order to renew their commitment to the principles embodied in FOIA.”

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The Dollar is being Trashed? No S*^T.

http://www.cnbc.com/id/39828427

Dollar at Risk of Becoming ‘Toxic Waste’: Charts

The dollar’s slump could get far worse if the dollar index takes out last year’s low, Robin Griffiths, technical strategist at Cazenove Capital, told CNBC Monday.

“If the (dollar index) takes out the low that was made roughly a year ago I really think that will not only encourage more sales, it will cause a little bit of minor panic,” Griffiths said. “A year ago it was deemed too cheap, if it goes any lower than that it’s actually become toxic waste.”

The dollar [.DXY  77.13   -0.34  (-0.44%)   ] resumed its recent downtrend Monday in the wake of a meeting of finance ministers from the Group of 20 nations at the weekend. The meeting failed to yield a definitive agreement on currencies, putting selling pressure on the greenback.

“The dollar is being trashed, we’ve actually had effectively devaluation of about 14 percent in the last two months,” Griffiths said.

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How low can it go…..Dollar hits 15yr low v yen after G20

How low can you go…………..

http://www.marketwatch.com/story/dollar-slips-after-g-20-disappoints-2010-10-25

Dollar hits 15-year low vs. yen after G-20

Pledge to avoid competitive devaluation fails to halt slide

The U.S. dollar tumbled across the board Monday, pushing the greenback to a fresh 15-year low against the Japanese yen, as the outcome of the meeting of finance ministers and central bankers from the Group of 20 nations gave traders no reason to stop selling the U.S. currency.

The dollar index (DXY 77.13, -0.34, -0.44%), a measure of the U.S. unit against a basket of six major global currencies, fell to 76.949, compared with 77.469 in late North American trading on Friday.

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Germany Accuses US of Indirectly Manipulating Dollar

US manipulate the dollar? Now we would never do that would we?  Yeah right!

The only thing falling faster and lower than Obama’s poll numbers is the dollar.

http://www.cnbc.com/id/39808247

Germany Accuses US of Indirectly Manipulating Dollar

German Economy Minister Rainer Bruederle on Saturday took issue with what he called a U.S. policy of increasing liquidity, saying it indirectly manipulated exchange rates.

The U.S. Federal Reserve is widely expected to embark on a fresh round of asset purchases to prop up the economy.

“There was criticism of the American policy of monetary easing, or creating more liquidity,” Bruederle said after a meeting in South Korea of finance officials from the Group of 20 economic powers.

“I tried to make clear in my contribution to the discussion that I regard that as the wrong way to go,” he said.

“An excessive, permanent increase in money is, in my view, an indirect manipulation of the (foreign exchange) rate.”

Foreign exchange rates should be determined by markets, said Bruederle, who was attending the G20 meeting in place of Germany’s hospitalised finance minister.

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  • Ronald Reagan – A Time For Choosing

  • uncle sam i am

    *I do not like this Uncle Sam,
    I do not like his health care scam.
    I do not like these dirty crooks,
    or how they lie and cook the books.
    I do not like when Congress steals,
    ...I do not like their secret deals.
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    I do not like this 'YES, WE CAN'.
    I do not like this spending spree---
    I'm smart, I know that nothing's free.
    I do not like your smug replies,
    when I complain about your lies.
    I do not like this kind of hope.
    I do not like it. nope, nope, nope!*

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