Stress Test Results: A Shot in the Dark….

Lies! Damned Lies and Statistics!

10 minutes to the ballyhooed Stress Tests, the results of which have already been leaked 6 ways to Sunday….

If there is anything you haven’t already heard, CNBC will cover it LIVE, and a Special Edition of Fast Money at 5:00pm EST…

PS AIG reported results MUCH worse than expectations…..


May 7, 2009. Tags: , , , , , , , , , . CITI, citigroup, Economy, Entertainment, Finance, Heavy Metal, Music, Obama Administration, Politics, Popular Culture, Uncategorized, Wall St. 1 comment.

Sheila Bair on Toxic Asset Plan…

Bloomberg: For the Record

Analysis and discussion with FDIC Chairman Sheila Bair. (For The Record)

March 31, 2009. Tags: , , , , , , , , , , , , , , , , , , , , , . Economy, FDIC, Finance, Housing, TARP, Uncategorized, Wall St. 1 comment.

Breaking: Financial Rescue Plan for Toxic Assets announced in Friday news dump?? uh-oh

Well this can’t be a good sign..


If our Secretary of the Treasury is so impaired we cannot announce the long awaited plan during market hours when we would have a monster bear market rally, get him the hexx out of there! Paging Jamie Dimon and Sheila Bair STAT!

WSJ Breaking:

The federal government will announce as soon as Monday a three-pronged plan to rid the financial system of toxic assets, betting that investors will be attracted to the combination of discount prices and government assistance. But the framework, designed to expand existing programs and create new mechanisms, relies heavily on participation from private-sector investors. …

…the program is smaller than originally envisioned, raising questions about whether it will be adequate to the task.

The administration’s plan, which has been eagerly awaited by jittery investors, includes creating an entity, backed by the Federal Deposit Insurance Corp., to purchase and hold loans.

In addition, the Treasury Department intends to expand a Federal Reserve facility to include older — so-called “legacy” — assets. Currently, it’s only set up to buy newly issued securities backing all manner of consumer loans. But some of the most toxic assets are securities created in 2005 and 2006.

Finally, the government is moving ahead with plans, sketched out by Treasury Secretary Timothy Geithner last month, to establish public-private investment funds to purchase mortgage-backed and other securities. These funds would be run by private investment managers but be financed with a combination of private money and capital from the government, which would share in any profit or loss…

March 20, 2009. Tags: , , , , , , , , , . Economy, FDIC, Finance, Obama Administration, TARP, Wall St. Comments off.

Breaking: New House ‘Housing’ Bill contains cramdown/judicial mortgage modification provision…

UPDATE: Reuters has it up:

U.S. bankruptcy judges would get power to modify home loans and mortgages services who alter loans would win protection from bondholder lawsuits under a bill to be considered by U.S. lawmakers later this week, sponsors of the legislation said on Monday.

The Hill:

House Democratic leaders may bring the bill to the floor for a vote on Thursday. The bill is sponsored by House Judiciary Committee chairman John Conyers (D-Mich.) and House Financial Services Committee chairman Barney Frank (D-Mass.)….

…The House bill says that a homeowner must have “attempted” to contact the lender or servicer before heading to a bankruptcy proceeding, but it does not require that the lender has received all the information. The bill also does not appear to limit the value of a mortgage that a judge can write down, which the financial services industry says opens the process up to far too many homeowners.

While most of the financial services industry opposes the cramdown provision, Citigroup earlier this year came out in favor of a form of the legislation in a negotiation with Sens. Dick Durbin (D-Illinois) and Chuck Schumer (D-N.Y.).

For some reason I always hear this song in my head when I think of mortgage cram downs…heh

Per CNBC chyron on Kudlow LIVE:

House ‘Housing’ Bill provisions include:

Upping FDIC credit line from 30b to 100b

Let bankrupcty judges modify mortgages for ‘some’ 1st homes

Offer limited liability protection to firms that modify mortgages

Bill would permanently increase insured deposit limit to 250k

…MiM will follow up as soon as anything is released..

February 23, 2009. Tags: , , , , , , , , , , , , , , , . citigroup, Economy, FDIC, Finance, Foreclosures, Glam Metal, Hair Bands, Housing, Music, Obama Administration, Politics, Popular Culture, Wall St. 4 comments.

2009-1-21 Nightline – Maxine Waters vs Refinancers

Rep Maxine Waters D CA tries to help her constituents..

From Rep Waters YouTube channel:  Even a Congresswoman can’t get satisfaction from mortgage refinancers.It is not about getting a live person. It is about getting a live person that can actually do something.

Vodpod videos no longer available.

more about “2009-1-21 Nightline – Maxine Waters v…“, posted with vodpod

February 4, 2009. Tags: , , , , , , , , , , . Economy, FDIC, Foreclosures, Housing, Politics, TARP. Comments off.

Case-Shiller Index released…worse than expected…home values drop 18%…

and the beat goes on….

That’s no ordinary twister folks!

That is falling housing prices…Kudlow used to play this clip and laugh at A Gary Shilling who called this crisis for what it was in one is laughing now….how many people can afford to take a 50% drop in their home values? In Phoenix we are there already….the only good news I can see in this report is surely Team Obama will MOVE on housing NOW…(hey don’t call me shirley…)

Professor Blitzer of S & P reporting live on CNBC says 11 of 20 cities across the country are in record declines…

Via Marketwatch:

Prices fell 3.4% in Phoenix and 3.3% in Las Vegas in November. In the past year, prices were down 33% in Phoenix, 32% in Las Vegas, and 31% in San Francisco.


Falling home values have helped to plunge the global financial system into chaos because of mortgage-backed securities. Home owners have lost trillions of dollars of wealth


Prices of single-family homes plunged a record 18.2 percent in November from a year earlier, indicative of a housing market that is still in the throes of a deep recession, according to the Standard & Poor’s/Case-Shiller Home Price Indices.

The composite index of 20 metropolitan areas fell 2.2 percent in November from October, S&P said in a statement on Tuesday. The depreciation on a month-over-month basis was slightly worse than expectations based on a Reuters survey of economists.


The freefall in residential real estate continued through November 2008,” David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s, said in a statement.

Why Case-Schiller Index matters to you courtesy of the Examiner:

…If you want to understand the Case Shiller index better, I recommend the multimedia graph set up by the New York Times. It shows each individual city, and looks back to 2001, so you have a better perspective on how prices have trended, instead of just hearing the year over year or month over month number. This page is dedicated to the index….

This economy will NOT improve until housing is addressed, period. Get to it Team Obama….

Here is Gary Shilling telling us what was coming in November of 2006…taking heat from Bulls like Luskin and Kudlow…note the DOW closed over 12,000 in this clip from 11/27/06….as they discuss Goldilocks economy and laugh at Gary Shilling’s warnings about the housing bubble…not laughing much now….

January 27, 2009. Tags: , , , , , , , , , , , . Economy, FDIC, Film, Finance, Foreclosures, Housing, Labor Department, Obama Administration, Politics, Popular Culture, TARP, Unemployment Statistics, Wall St. Comments off.

Barney Frank new TARP legislation…REAL Help for Homeowners-FINALLY!

View full presser on CSPAN here

From Bloomberg:

House Financial Services Committee Chairman Barney Frank today proposed legislation setting terms for releasing the remaining $350 billion of financial-rescue funds, seeking as much as $100 billion to stem foreclosures.

Frank’s measure, reflecting lawmakers’ criticism over how the first half of the $700 billion rescue fund was used by President George W. Bush, would require President-elect Barack Obama’s Treasury Department to develop a foreclosure-prevention plan by March 15 and put it in place by April 1.

From the legislation, H.R. 384, the highlights from the FT:

Among the proposals: tougher executive compensation restrictions on companies accepting Tarp funds and bans on corporate jets and other perks.

“[What] I’m going to tell the banks is, ‘look, you don’t like these [conditions] but would you rather have no $350bn?’ ” Mr Frank told reporters.

The bill would also widen access to the remaining $350bn of Tarp funds beyond the big Wall Street institutions that dominated the first tranche.

A “significant” share would be directed at homeowners facing foreclosure, while local governments, real estate companies and car dealers would also receive help.

January 10, 2009. Tags: , , , , , , , , , , , . Economy, FDIC, Finance, Foreclosures, Hillary Clinton, Housing, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. 2 comments.

Breaking: Sheila Bair to stay on at FDIC–HOORAY!!!

Sheila Bair - FDIC Chief

Sheila Bair - FDIC Chief

We LOVE Sheila Bair here at MiM, if Paulson or Geithner or Bernanke had listened to Sheila we would have had mods underway for a year or more by now…they continuously refused her requests that TARP funds be used to fund an FDIC housing plan despite the repeated requests by Congress that they do so…

Barney Frank (D-MA) and Maxine Waters (D-CA)have gone to town on Kashkari for this refusal to implement Chairwoman Bair’s plans and we are sure they had her back in this appointment, (see Waters on our video wall)  (she has butted heads with Tim Geithner the incoming Treasury Secretary over the Citibank attempt to buy Wachovia so there is bad blood there….)

We are ECSTATIC that she is staying on at FDIC..

Read more about Chairman Sheila Bair in our previous posts on her work at FDIC, her incredible bio, and her mort mod plans in our previous posts here and here and here

FDIC BIO of Sheila C. Bair

January 7, 2009. Tags: , , , , , , , , , , , , , . Economy, FDIC, Finance, Foreclosures, Hillary Clinton, Housing, Music, Obama Administration, Politics, Popular Culture, TARP, Unemployment Statistics, Wall St. 6 comments.

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