Meredith Whitney – Housing double dip is here, Middle Class Squeeze to get worse…

This Congress is killing the middle class.

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…Whitney also said financial regulation reform and policy-making that is not friendly to the middle class will hurt growth.

“The populist incumbents argue that we’ve got to get money to redistribute wealth,” she said. “This squeezes the middle class further down the food chain. The unintended consequences of this are maddening.”..

Meanwhile back in DC our HUD secretary is either deluded or spinning like a top:

…”There is no question that today’s housing market is in significantly better shape than anyone predicted 18 months ago,” he told reporters, adding, “Seventeen months after President Obama took office our housing market is stabilizing.”

To support the claim, the HUD chief released a scorecard on the housing market that showed after 30 straight months of decline, home prices have leveled off and are expected to begin adjusting upward.

It also showed that since April 2009, 2.8 million homeowners have received restructured mortgages through Obama’s loan modification programs, and more than 2.5 million families used the First-Time Homebuyer Tax Credit to purchase a home. The credit was a part of the first stimulus bill Obama signed into law shortly after taking office….

BWAAAAHAA!!! ROTFLMAO!!!!! HAMP and the Tax Credit worked he says!! BWAAAAHAAFRAKKINHAAAA!~!!! ZOMG! Ahh man they really slay me.

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June 21, 2010. Tags: , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Taxes, Unemployment Statistics, Wall St. Comments off.

More Meredith Whitney: Investors should avoid banks at all cost…

Money quote- “Politicians have proven far worse than our worst expectations,”

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Investors should “avoid financials at all costs, particularly in the banking sector” because the Senate’s financial reform bill will end up restricting credit and hurt bank earnings, well-known banking analyst Meredith Whitney told CNBC.

…Whitney cited two new credit card rules in the Senate bill as particularly onerous. One would force banks to comply with individual state caps on credit card interest rates. The other would regulate how much credit card issuers could charge merchants for using their cards.The state caps on interest rates, she said, could make rates in one state lower than in another, causing banks not to lend in certain states.

“It’s going to make accessing capital so difficult for pockets of the country,” she said, particularly for small businesses that often depend on credit cards for funding….

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May 17, 2010. Tags: , , , , , . Economy, Finance, Housing, Obama Administration, Politics, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

Rick Santelli lets Kanjorski D-PA have it on Fannie, Freddie reform…

love the Rickster!

Our many posts on FAN and FRED here

May 11, 2010. Tags: , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Wall St. 1 comment.

Obama Financial Reform bill maintains Too Big To Fail bailouts: Geithner admits to Brad Sherman (D-CA) the financial reform bill will allow Treasury to give unlimited funds in future ‘failures’..

Update: CSPAN has the full hearing up here, see here for the testimony of the examiner who did the forensic accounting on the Lehman collapse. He starts out explaining how highest levels of regulators were ‘concerned’ about Lehman in 2007 but did absolutely nothing, not the NYFed not the SEC. None of them took action.

Treasury Secretary Tim Geithner tells Rep. Brad Sherman that “You cannot know in advance how much money you will need to resolve a Lehman.” This confirms the Democrats want to set up a bailout fund without limits.

Perfect. The big behemoths who brought us to our knees will get nifty low rates since everyone will know once this is passed, their debts are protected by taxpayers funds in bailouts of hand selected collateral debtholders by Treasury in future failures…kill this bill it is a giant gift to JPMC, GS and whomever is making money on FAN FRED FHA Citi BofA, see the excellent analysis at Naked Capitalism:

In a letter to Senate majority leader Harry Reid and minority leader Mitch McConnell, luminaries including former SEC Chief Accountant Lynn Turner, former Labor Secretary Robert Reich, hedge fund owner Jim Chanos, former Lehman Brothers Vice Chair Peter Solomon, former S&L investigator Bill Black, former Senate Banking Committee Chief Economist Rob Johnson, economists Dean Baker, Barry Eichengreen and others pointed out that Dodd’s proposed financial reform legislation wouldn’t have prevented the current crisis … and won’t prevent the next crisis.

Dodd himself has admitted that his bill “will not stop the next crisis from coming”.

In fact, the bill is wholly ineffective, failing to address the core things which need to be done to stabilize the economy. See this, this and this….

The House Financial Services Cmte heard testimony from SEC head Mary Schapiro, Bernanke and Geithner on the regulatory failures during Lehman. I support a well regulated free market. Not a market with tons of regulations that no one enforces on the select few who payoff the regulators or otherwise ‘capture’ them.

It was CRYSTAL clear that they HAVE THE POWERS THEY NEED already in the case of Lehman, and they were victims of REGULATORY CAPTURE and failed to act. Tim Geithner specifically admitted to Ed Royce R-CA that yes as head of NY Fed under his purview Lehman FAILED stress tests, yet they did..nothing. Here is Royce telling Geithner LAST JULY that the permanent bailout authority they had in the bill then was unacceptable

Sarbanes Oxley was the regulation needed, Dick Fuld signed the financial statements under SarbOx he should be prosecuted. We got better results from Dubyah with Enron for Gawd’s sake.

They don’t need more unchecked power to proclaim bailouts and seize large American firms without Congressional approval and dole out bailouts a la GM and Chrysler in the way they deem fit. That is exactly what the Dodd bill does.

Team Obama has repeatedly told Mark Warner D-VA, Chris Dodd, D-Countrywide, Blanche Lincoln -D-AR, to pull out of negotiations with the GOP, specifically Bob Corker R-TN and Shelby R-GA. They portray Obama as entering the fray early on this one. HA! AS IF!! Dodd and Shelby and sometimes Corker have been hammering at this for over a year already. Pullllease….

This is all kabuki from the team of ubergeniuses that funded Os campaign and who apparently have killed the Volcker Rule..again. We really have no one to fight for us here IMO.

The GOP will not allow the Volcker Rule which would effectively limit some of the risks of collapse and TBTF,(since we have no earthly idea what the banks are really holding, Repo 105s and all)  (and the bank taxes the Left is levying globally will assure financial business doesn’t flee to UK for now) and the Dems are in bed with these guys calling the shots on regulation, see Dodd, Chris and the WH which wants to leave the rule vague and they claim that is by design:

…Banks for months have groused that the Volcker rule, which proposes to ban banks that take deposits from trading securities for the firm’s benefit only, doesn’t offer a well-defined description of what constitutes proprietary trading activity.

Banks including JPMorgan Chase, Morgan Stanley and Goldman Sachs argue that there are gray areas in which they are engaging in proprietary trading to hedge their own activities as financial intermediaries with clients.

“What [lawmakers] are outlining is the idea of what we are trying to prevent,” the official said. “These are guidelines. What the banks are saying is, ‘We want that to be written into the law — the details of which kind of transactions should count — and I think that that’s a bit disingenuous.”…

Exile on Main Street baby. Hey I’ll party with the people patriots anyday of the week. When push comes to shove, people look out for each other here in ‘the Middle’. I love Main St. It is my favorite part of Disneyland in fact, lol.

Main St, U.S.A. Disneyland

April 20, 2010. Tags: , , , , , , , , , , , . Economy, Finance, Housing, Obama Administration, Politics, Popular Culture, TARP, Taxes, Wall St. 1 comment.

Sen. Bob Corker R-TN ‘WH politics and healthcare have killed the bipartisan Financial Reform Bill’

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Corker sounded very sad that Dodd (D-CT-Friend of Tangelo) let him know yesterday that they will not be proceeding with the bipartisan talks on the Regulatory Reform Bill. Compare this announcement with the optimistic tone Warner (D-VA and Warner is also IMO the DNC choice to run against Hillary in ’16 no doubt) and Corker had just 2 weeks ago, remember ALL must bow before the almighty health care reform, even this, the most important thing they can do for the economy…

Recall this is the second time the Dems have screwed Corker after he put it all on the line for them, the same thing happened when he was trying to help in the GM bailout talks…fool me three times??

Corker has been taking serious heat for working with Dodd and the Dems and here is his reward,  he is dumped to the curb…let it be a lesson to others, these Congressional Democrats are NOT your Daddy’s Dems, they are ideologues and even those who WANT to work together (Corker kept going on and on about how wonderful Dodd and Warner D-VA were), the WH will put the kibosh on it….

So are they going to ram ahead on a partisan Financial Regulatory bill using reconciliation too?


A bipartisan effort to craft a financial reform bill fell apart in the Senate, with Senate Banking Committee Chairman Chris Dodd (D-Conn.) saying he would move ahead on a revised package without Republican support. At a news conference after Dodd’s announcement, GOP committee member Bob Corker said the “decision was very disappointing” but added he understood “the pressure he [Dodd] was under.”

“There’s no question the White House, politics and health care have kept us from getting to the goal line,” he added….

…”Dodd is going for broke, hoping that somehow he can push a bill out of committee even though he has not been able to work out crucial deals behind closed doors,” said banking analyst Bert Ely. “I have been highly skeptical for months about the prospects of major financial regulation legislation this year. I now am more skeptical than ever “…

Another key legislative issue biting the dust because Obama and Pelosi are OBSESSED with healthcare. Nice way to govern..NOT.

This is a great time to post NakedCapitalism’s EXCELLENT (should win Pulitzer for Truth in a world of propaganda hacks) Blog post on how Obama has TANKED meaningful financial regulatory reform already:

I’ve seldom seen so much rubbish written by people who ought to know better in a single day. Many able people have heaped the scorn and incredulity on three articles, one a piece on Rahm Emanuel slotted to run in the Sunday New York Times Magazine, another an artfully packed laudatory piece on Timothy Geithner by John Cassidy in the New Yorker and a more even handed looking one (I stress “looking”) in the Atlantic.

Ed Harrison has skillfully shredded parsed the Geithner pieces . Simon Johnson thrashed the New Yorker story

Continues after the break:


March 11, 2010. Tags: , , , , , , . Economy, Finance, Healthcare, Obama Administration, Politics, TARP, Taxes, Wall St. Comments off.

Sen Gregg vs Ron Paul on Auditing the Fed

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Rep. Paul starts great and then begins talking about ending currency regulation and letting people coin their own money too. NOT a good idea!! Imagine! sigh. and CNBC: Keeping the Federal Reserve accountable, with Rep. Ron Paul, R-Texas and Frederic Mishkin, Columbia University professor.

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December 15, 2009. Tags: , , , , , , , , , , , , , . Economy, Finance, Obama Administration, Politics, Warner Bros.. Comments off.

Financial Regulatory Reform: Did Jamie Dimon stop the re-enactment of Glass-Steagall?

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Update: Oh this is  rich, Andy Stern and SEIU are having an ‘end too big to fail’ rally outside Golden Slacks, it sounds like they are actually supporting the Dodd position which the WH is NOT supporting but we know Andy Stern is there (WH) more than anyone else…so are they ‘accidentally’ using the same words as Jamie? Are they helping to keep Golden Slacks’ negative profile so high they don’t bid on taking any of the assets in the FDIC bank seizure sales? (Jamie is against the Dodd too big to fail legislation because he reportedly wants to buy some of those assets and Golden is a competitor…is the WH not really against the Dodd legislation and lying to Jamie? Is Stern just greedy or is this planned? man oh man…)

…a couple hundred of them — led by Service Unions International Union president Andy Stern — plan to gather outside of Goldman Sachs’ Washington offices Monday morning to protest the firm’s mega-bonuses, and demand the end of the “too big to fail” doctrine, according to a press release.

The event will be held outside 101 Constitution Ave. N.W., an office building that’s home to many of the most powerful lobbyists and corporations in town, including Goldman. It’s also where you can find POLITICO’s Capitol Hill bureau (in the basement).

Among their demands, the protesters will say that Goldman bankers should donate their reported $23 billion in bonuses to foreclosure prevention programs….


wow. We supported Jamie Dimon for Treasury Secretary. Face it Geithner already gave billions to the banks via AIG and CITI, may as well have a TOUGH fox guarding the hen house, and Jamie is the toughest. Paul Volcker who gets wheeled out for the occasional photo-op is clearly being ignored, treated like the ‘crazy Uncle’,  as Charlie Gasparino puts it.  Obama is listening to only one banker it seems, Jamie who has vested interests in keeping things as they are.

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Airtime-Fri. Nov. 13 2009 – 12:50 PM ET – CNBC’s Charlie Gasparino has the details on whether Jamie Dimon is too powerful.

Jamie Dimon-  ‘No Bank Should be Considered Too Big to Fail’

…Dimon, in a Washington Post opinion piece, said the government shouldn’t provide artificial life support to banks that don’t perform. “The term ‘too big to fail’ must be excised from our vocabulary,'” Dimon wrote in Friday’s Post.Yet he said it shouldn’t be the size of the institution that drives the new regulatory policies being considered in Congress but rather their ability to manage risk and provide the best services for customers.


November 13, 2009. Tags: , , , , , , , , , , , , , , , , , , , , , , , , , . Economy, FDIC, Finance, Obama Administration, Politics, TARP, Wall St. 1 comment.

In-Depth Look – Impact Of Obama’s Regulation Reform On Banks – Bloomberg

Interview and discussion with Paul Miller of the F.B.R. Capital Markets. He gives his thoughts on the Obama’s financial regulation reform in banks. (Bloomberg News)

Really interesting, Miller notes the states will now be able to enforce their own regulatory reforms on the banks at the state level, something heretofore undone…..

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June 17, 2009. Tags: , , , , , , , . Economy, FDIC, Finance, Obama Administration, Politics, Uncategorized, Wall St. Comments off.

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