On December 29, 2008, our friend Victor Hong wrote the following prophetic post on MNC:
Why Zero-Rate Policy Will Fail, by Victor Hong
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Victor was right. This will work until it doesn't, then BANG!!! These stories speak for themselves. - BC
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(print baby print) Market Now Pricing In $770 Billion Increase In Fed Balance Sheet - Submitted by Tyler Durden - Zero Hedge
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(long on bigger government, short on specifics?) Obama Seeks To Expand Federal Housing Outreach - by MortgageOrb.com - ... Obama also announced the planned establishment of a "Financial Crimes Unit of highly trained investigators" designed to "crack down" on financial fraud. The president did not state if the new unit would be part of the Consumer Financial Protection Bureau (CFPB) or the Department of Justice, and he called on Congress to toughen existing financial fraud laws. ...
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Benanke plans to print more money to buy mortgages - OC Housing News - The federal reserve is dominated by Keynesian economists who all have one thing in common: when their policies fail, they believe doing more will somehow succeed. If the definition of insanity is repeating the same behavior expecting a different result, then all Keynesian economists and all federal reserve officials are certifiably insane.
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Bernanke has "finger on trigger" for new bond buys - By Ann Saphir and Jonathan Spicer - (Reuters) - The Federal Reserve has moved closer to embarking on a new round of its controversial money-pumping after the central bank and its chairman Ben Bernanke highlighted a grim outlook for the U.S. economy.
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Obama Answers Bernanke Plea With Refinancing Plan: Mortgages - By Jody Shenn, Lorraine Woellert and Prashant Gopal - Bloomberg
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Obama Proposes Mortgage Bailouts, Handouts, Copouts Exactly One Paragraph After Stating "Top to Bottom: No Bailouts, No Handouts, and No Copouts"; How the Taxpayer Ripoff Works - Michael Shedlock - ... I found a nice Orwellian set of paragraphs smack in the middle of his speech. ... Finally, and most importantly, every loan that is refinanced will be paid off in full. Thus, any bank, hedge fund, mortgage provider, or GSE that is paid off on a nonperforming loan will be immediately made whole. This is a massive backdoor bailout of banks, mortgage companies, hedge funds, foreign banks, and anyone else holding mortgage related garbage. In case you were wondering about the big rally in bank shares this year, this proposal just might have something to do with it. ... - MISH'S Global Economic Trend Analysis
1 response so far ↓
1 John Coleman // Jan 26, 2012 at 9:16 am
Yup and no surprise on the author. I’d ask him about his thoughts and probable correlation between Japan’s quadrillion yen debt level and our future but even I can deduce his answer. Maybe “the Visionary” has thoughts on the now-global mis-pricing of risk/credit financing as there are a trillion euros in 3-year guaranteed(ish) term funding at 1%– for anyone looking to strap on some failed/failing sovereign debt. Welcome to the spiral, Old World. Ironic that they soiled the sheets giving away too many entitlements and increasing leverage and we’re trying to recover by handing out more free stuff and financing it forward. Hmm… Chicken/Egg paradox defined.
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