How Alan Greenspan Destroyed America

[Bombur]

It is not an opinion that ratings agencies are responsible for rating. That is a fact. It is your opinion that it is somehow the government's fault that they rated things incorrectly.

MBS are not the same as sub-prime loans. Rating a MBS as AAA is not the same as rating a loan AAA.

You just fundamentally refuse to learn anything about the situation so you remain confused and ignorant.

The heart of the crisis was not sub-prime loans mandated by the CRA. The heart of the crisis was the MBS that hid that risk which lead to a large increase of sub-prime loans beyond the mandates of CRA. There is no doubt that the market failure was a result of bad decisions made at F&F. Those same bad decisions were made at the ratings agencies and the financial institutions buying and pricing MBS.

A MBS isn't just some corn flakes you buy at Wal Mart. The financial institutions that are involved are committing billions of dollars to a purchase. They are the ones that are establishing the price of these MBS which in turn establishes the rating.

Regulations that should have helped are ones involved in the creation of the loans in the first place, the regulation of F&F which would have helped establish their risk, and the regulation of the holders of the MBS to establish their risk. There was widespread regulatory failure by the government.

By the way MBS do help manage the risk of sub-prime loans. The problem was that the formula used couldn't react to the massive price bubble and the demand for sub-prime loans increased so drastically that the regulations concerning the loan creation process decreased below what it should have been.

I think there is a very fundamental misunderstanding of what Mortgage Backed Securities actually are and why the government had nothing to do with their creation.

F&F most certainly did and there is no doubt that F&F share responsibility. The federal government ended up backing the guarantees made by F&F which was a major part of the bailout. IMO the law should clearly establish that the guarantees made by F&F are NOT backed by the taxpayer.

 

[katsung47]

743. Create a hoax of a better off economy (10/29/2012)

Three months before the voting date, the unemployment rate was still high that it made the re-election unlikely for Obama.

What Does an 8.3 Percent Unemployment Rate Mean for the Election?

By: Jon King | August 5, 2012

Many pundits (including this one) have made the point that if the unemployment rate is at 8% or higher that the president will have an uphill battle to win the election.

The reason why 8% is such a hurdle is that no modern president has ever won re-election when unemployment was over 8%. Actually, if one wants to take an even more skeptical view, they could say that no president since Roosevelt has won re-election with unemployment over 7.2%.

What Does an 8.3 Percent Unemployment Rate Mean for the Election?

It’s hard to convince people the unemployment rate would drop below 7.2% in two months from 8.3%. But they still could manage to get a figure of 7.8% in order to make Obama’s re-election more reasonable.

Fact Check: Labor Secretary Solis Misleads on Jobs Revisions

by Joel B. Pollak 5 Oct 2012

Suspicion about the federal government's September jobs report has fallen on Secretary of Labor Hilda Solis, who appeared on CNBC this morning and defended the numbers from the Bureau of Labor Statistics (BLS), claiming--falsely--that upward revisions of 86,000 jobs were from the private sector. In fact, the new number is entirely accounted for by upwards revisions to state and federal government payrolls.

The BLS reported that while only 114,000 jobs were created in September--which would have translated into a rise in unemployment from 8.1% to 8.2%--the unemployment rate fell dramatically to 7.8%. That unusual drop is the fastest in nearly three decades, and was unexpected even in the rosiest predictions.

One reason for the rise was an upward revision of 86,000 to the July and August jobs numbers--all of which came from a 91,000 increase in the estimate of public sector jobs. Private sector job estimates were actually revised downward by 5,000.

In addition, the BLS reported a large rise in the number of part-time jobs, adding 600,000 jobs to the total--a dramatic increase of 7.5%, not explained by any other economic indicators--and raising questions about whether the government had changed the way it counted part-time workers.

Fact Check: Labor Secretary Solis Misleads on Jobs Revisions

Nobody can verify the figure. It’s all under their control. They could cover up the truth of 911 attack. They could make Bin Laden died twice. So what to maintain a puppet president? If they could have kept a war criminal (who activated a war with a lie) to stay on his second term, what’s the problem for another puppet? All they have to do is to create a hoax of a better off economy for several months then blame everything on the coming financial cliff.

 

[katsung47]

790. Bernanke’s Sept. Q.E. tapering off and Mueller’s stepping down (9/22/2013)


I quote some of my articles here because later development used to prove they were correct.

September should be the last month for Robert Mueller in his FBI office. (Sep. 2001 – Sep. 2011) His term has been extended for two more years. He has to finish Kat Sung before he leaves the office. (#694)

So this year we saw the last crazy before Robert Mueller’s leaving. The big plot – North Korea nuclear war crisis, the bird flu in China, Boston bombing. It ended with Snowden’s case in June.

There were still two months left before Mueller’s stepping down. So they hurried off a last hour effort – organized a Mid-East crisis which signaled by great prison escapes, US embassies close and Chemical weapon attack in Syria.

Embassies to close in Muslim world this Sunday

The Associated Press Aug 2, 2013

"Current information suggests that al-Qaeda and affiliated organizations continue to plan terrorist attacks both in the region and beyond, and that they may focus efforts to conduct attacks in the period between now and the end of August," the statement said.

U.S. issues global travel alert over al-Qaeda threat - World - CBC News

Why Al Qaida “focus to conduct attacks in the period between now (Aug 2) and the end of August, “? More likely, it fits the time of

Mueller stepped down on September 4, 2013, and was replaced by James Comey.[10]
Robert Mueller - Wikipedia, the free encyclopedia

The Feds used to buy in many houses in their case. It is for the convenience of surveillance. It also brings with them a lot of profit because they can manipulate the policy. In my case, Feds bought the houses of nearly whole area according to my observation. It now becomes a burden for them. The interest rate became a very important factor for them to maintain those real estate properties. They force the Federal Reserve to start a third Q.E. to keep the interest rate low . I describe the story from #733 to “739. The third housing bubble (10/1/2012)&#8221.

The Q.E. certainly will create a big inflation bubble and a housing bubble as well. Bernanke likely has been assured he could taper off Q.E. after September. The Feds was sure they could eliminate Kat Sung before Robert Mueller’s leaving. However, it fails.

To maintain the interest of the Feds, Bernanke has to break up his promise and take the blame.

Bernanke blasted after surprise no-taper decision

Many blamed Bernanke and fellow members of the Federal Open Market Committee (FOMC) for having since May repeatedly suggested a September taper of the quantitative easing (QE) program.

http://news.yahoo.com/bernanke-blasted-surprise-no-taper-decision-214756277.html

 

[Andylusion]

.

Yeah, it's always that guy's fault, that guy over there.

The Meltdown was caused by a wide variety of culprits over at least a couple of decades. Examples:

• Politicians who pushed loans for people who shouldn't have had them
• Ratings agencies that completely fucked up and over-rated many securities
• An abject failure of regulatory agencies to do their fucking job
• Greed on the part of a variety of financial services operations with a variety of securities
• Consumers who willingly signed on the bottom line for a home they knew they couldn't afford
• A culture of conspicuous consumption at all income and age strata

But I know it's much easier to just blame that guy, over there.



.

The CRA had zero to do with the housing bubble.

Nadda, zilch.

Pushing that idea is an ol' conservative chestnut that poor people are to blame for this country's ills.

The CRA was directly involved in the housing bubble. Completely, totally, 100%.

Pushing that idea is an ol conservative tactic called "truth".

 

[Andylusion]

the sec under Bush refused to implement the broker rules in GLB act for 8 long years.


WHY?




SEC Votes for Final Rules Defining How Banks Can Be Securities Brokers

Eight Years After Passage of the Gramm-Leach-Bliley Act, Key Provisions Will Now Be Implemented

FOR IMMEDIATE RELEASE
2007-190

Washington, D.C., Sept. 19, 2007 - Ending eight years of stalled negotiations and impasse, the Commission today voted to adopt, jointly with the Board of Governors of the Federal Reserve System (Board), new rules that will finally implement the bank broker provisions of the Gramm-Leach-Bliley Act of 1999. The Board will consider these final rules at its Sept. 24, 2007 meeting. The Commission and the Board consulted with and sought the concurrence of the Office of the Comptroller of the Currency,

Completely irrelevant to the sub-prime crash. Had nothing to do with it, would not have prevented it, and isn't important to this conversation.

 

[Andylusion]

It is not an opinion that ratings agencies are responsible for rating. That is a fact. It is your opinion that it is somehow the government's fault that they rated things incorrectly.

MBS are not the same as sub-prime loans. Rating a MBS as AAA is not the same as rating a loan AAA.

You just fundamentally refuse to learn anything about the situation so you remain confused and ignorant.

The heart of the crisis was not sub-prime loans mandated by the CRA. The heart of the crisis was the MBS that hid that risk which lead to a large increase of sub-prime loans beyond the mandates of CRA. There is no doubt that the market failure was a result of bad decisions made at F&F. Those same bad decisions were made at the ratings agencies and the financial institutions buying and pricing MBS.

A MBS isn't just some corn flakes you buy at Wal Mart. The financial institutions that are involved are committing billions of dollars to a purchase. They are the ones that are establishing the price of these MBS which in turn establishes the rating.

Regulations that should have helped are ones involved in the creation of the loans in the first place, the regulation of F&F which would have helped establish their risk, and the regulation of the holders of the MBS to establish their risk. There was widespread regulatory failure by the government.

By the way MBS do help manage the risk of sub-prime loans. The problem was that the formula used couldn't react to the massive price bubble and the demand for sub-prime loans increased so drastically that the regulations concerning the loan creation process decreased below what it should have been.

I think there is a very fundamental misunderstanding of what Mortgage Backed Securities actually are and why the government had nothing to do with their creation.

One of the greatest developments in the debt market in the past 30 years was the development of the mortgage-backed securities

The first MBS was brought to market by Ginnie Mae in 1970. Throughout the 1970s and early 1980s the major type of MBS security was the pass-through security (discussed in details below). A major innovation for the MBS market occurred in 1983 when Freddie Mac issued the first Collateralized Mortgage Obligations (CMOs). These new instruments appealed to investors with special maturity and cash-flow requirements

Mortgage Backed Securities were created by the Federal Government, first through Ginnie Mae, and then through Freddie Mac.

Government did create them. You are wrong.

 

[katsung47]

791. Summers withdrew candidate of Fed chair and oil price (9/26/2013)

Former FBI Chief Robert Mueller’s stepping down on 9/4/2013 obviously was a core time of recent big events. The sudden break out of Syria war crisis caused by Chemical weapon accusation in late August was a tradition way of Feds to distract. My relatives sudden trip to Turkey in early September was part of the elimination plan. When the plot went soured, the Feds has to change the original promise to the Chairman of Federal Reserve – we saw Bernanke having a “surprise no-taper decision”.

No-taper of Q.E. decision is only a temporary decision. For the huge amount of real estate property the Feds hold, they need a person to keep the interest rate low. There comes another big surprise that on September 15, the Fed Chair candidate Summers withdrew his name from the list. Summers was Obama’s top choice for the Fed. What made a man to abandon the fruit he almost certain to grasp? Or in another word, who has the power to manipulate celebrities? It’s the Feds. I’ve talked about it many times. They could force Chief Justice Roberts to change his mind on Obamacare. (see “726. The surprise turnaround of Chief Justice (7/4/2012)”) They could force Petraeos resigning from CIA Chief post. (see “747. Petraeus case is an extortion (11/27/2012)”) So what for a candidate for the Fed’s chair?

The point is Summers concerns more on inflation which will restrict the easy money of Q.E.. What the Feds need is a person who favors more Q.E. to boost the housing market.

The other news indicates how the Feds does to keep interest low (by lower the oil price).

Oil falls as US shows signs of patchy growth

PAMELA SAMPSON 9/26/2013


BANGKOK (AP) — Oil prices fell again Thursday amid worries about the U.S. economy and signs of a slowdown in demand.

Oil falls as US shows signs of patchy growth

In Autumn, a gas price fall

Per-gallon fuel costs expected to drop 40 to 45 cents by Halloween

By Gary Richards Mercury News 9/22/2013

A low oil price will draw dawn the inflation to offset the pressure to raise the interest rate. The Feds could manipulate politicians and manipulate oil price by financial group as well.

 

[katsung47]

794. Debt ceiling crisis and October plot (10/16/2013)

While I am worrying about my wife’s travel to China (from 10/14 to 10/23), I think the Feds and Chinese secret police would frame a case on her, I suddenly realize another event, the debt ceiling deadline, is related to it.

As I have always found, the Feds used to create big event to distract if the framing case on me would break out. Since it is a framing case, there will be a lot of unreasonable search and arrest, murder to silence the witness. So they need large case to transfer public’s attention. The case could be natural disaster, epidemic, terror attack and war.

The recent one for September plot was Syria war crisis. War on Syria was almost happened in September in excuse of “Chemical weapon war crime”. The crisis was avoided after Syria offered to abandon the chemical weapon. Another traditional excuse for war on Iran is also diminished when new regime of Iran offered concession on its nuclear ambition. Now it’s difficult for the Feds to use war to distract.

They find another one – economic crisis. That’s the deadline of debt ceiling on 10/17 which is coincident to my wife’s trip. If the US debt go default, it surely will cause a hurricane in US economy and in world’s as well. It can play a well substitution of war. With “social security check can’t be issued”, “welfare postponed”, the impact to American society would be bigger than war. That’s why media beat the drum on this crisis – to make it big if the elimination of Kat Sung case goes through.

Two main actors of this show – Obama and House Republicans, make it look like a real political argument. They don’t care if the US will fall into a financial cliff because they don’t work for the American people but for the Feds. That’s the truth of US politics. Politicians are not elected by people but are selected by the Feds because the Feds control voting system and they make the election result reasonable by fake poll because they also control the media.

Republicans are controlled by the Feds. The typical story was the passing through of Obama care in Supreme Court. Chief Justice John Roberts is a conservative stronghold. Under pressure of the Feds, he had to vote against his will. (See #726, 746, 756.) That event also relates to my case.

The debt ceiling argument will be maintained as a procedure of my case. The recent elimination plot likely is a shopping center shooting death which justified by Kenya shopping mall shooting, I think.

 

[katsung47]

795. Debt ceiling crisis continues and shopping mall shooting (10/20/2013)


It happens just as what I have said, the government maintains that big financial crisis – move it to three months later.
The framework negotiated by Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell would fund the government through Jan. 15, 2014, and suspend the debt limit until Feb. 7, setting up another round of confrontations.

Though both parties and Obama are criticized for playing politics and leave public interest alone, they don’t care. They just follow their master’s order. It means if the Feds succeeded in their next plot, the Americans will face a big financial turmoil early next year.

I also allege that “Kenya Mall massacre” was created by the Feds to justify a “shopping center shooting spree” in US. I had experience of “attempt murder in bank robbery” (see #402, 404, 561 562) .so I try to go shopping when bank closed – in holiday or in evening. California Market was a Chinese supermarket I used to go which located at Landess Ave cross with Morrill Ave. (2 in map) started from later last year, California market shrank gradually (only part of it was opened) so I had to turn on to the Sea Food City cross the street which supplies food for Philippines’. (1 in map).

http://thumbs.myopera.com/sz/colx/katsung47/albums/12490382/Super market.PNG?1382297941

In later March this year, a news rattled me. A bank was robbed continuously in Season’s Market Place. It was the market where Sea Food City located. (see “764. Plot to eliminate Kat Sung (3/23/2013)&#8221 I didn’t notice there was a bank in that place. I asked people, they told me it might be on business started from last year. I found that US Bank is just next door to the supermarket. I also found it open to business on weekends too. I think all these were manipulated by the Feds. They arranged a bank for bank robbery shooting trap. To force me go there they shut down the other supermarket I used to go. It was lucky for me that I used to go there later on Sundays. US bank closes at 3 p.m. on Sunday.

California Market closed in April, (a coincidence with April plot marked with Boston bombing), it remains unchanged until September. On Oct. 6, it reopened. It was a hurry up opening. I didn’t go inside. Kenya mall shooting just happened. Would there be another trap?