Comments on: Going “All In” http://www.noquarterusa.net/blog/15673/going-all-in/ Fri, 25 May 2012 02:01:00 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: LD http://www.noquarterusa.net/blog/15673/going-all-in/#comment-1150022 LD Fri, 27 Feb 2009 14:15:32 +0000 http://www.noquarterusa.net/blog/?p=15673#comment-1150022 I am shocked by that statement. I am shocked by that statement.

]]> By: mountainaires http://www.noquarterusa.net/blog/15673/going-all-in/#comment-1150005 mountainaires Fri, 27 Feb 2009 13:51:36 +0000 http://www.noquarterusa.net/blog/?p=15673#comment-1150005 Thanks LD. Well said, and sorry for the ugly pun, but "right on the money." Now, are you ready for this? I don't know that much about Sheila Bair, but she seems to have the confidence and respect of many, so this article caught my eye, since my reading reveals that bank failures are imminent, and FDIC coverage for it isn't what it should be. So Bair's statement in this article stunned me! I'm surprised she would have said this: [emphasis mine] <strong>FDIC paints bleak banking picture</strong> Banks post loss of $26.2 billion in fourth quarter By Greg Morcroft, MarketWatch Last update: 4:19 p.m. EST Feb. 26, 2009 <blockquote>NEW YORK (MarketWatch) -- Banks insured by the FDIC posted a collective loss of $26.2 billion in the fourth quarter of 2008, the agency said Thursday, as the percentage of charged off loans tied a quarterly record of 1.91%. [...] Bair said the fund's reserve ratio, a measure of the funds it has compared to the costs it might face to cover bank failures, fell to its lowest level since 1993 during the fourth quarter. "The December figure is the lowest reserve ratio for a combined bank and thrift insurance fund since June 30, 1993, when the reserve ratio was 0.28%," the agency said in a press release. That could pose problems for the FDIC should it be called on to cover the failure of any very large institution, Bair said. <strong>She said there are limits to what the FDIC can do, and that it may not have the resources to take over a major financial institution. </strong> Twelve insured firms failed during the fourth quarter, and they cost the FDIC $4.5 billion. </blockquote> Full grim article here: http://www.marketwatch.com/news/story/FDIC-paints-bleak-banking-picture/story.aspx?guid=%7bAD2B796C-DC21-45AA-97D0-524CEF8FF55A%7d&print=true&dist=printMidSection Thanks LD. Well said, and sorry for the ugly pun, but “right on the money.”

Now, are you ready for this? I don’t know that much about Sheila Bair, but she seems to have the confidence and respect of many, so this article caught my eye, since my reading reveals that bank failures are imminent, and FDIC coverage for it isn’t what it should be.

So Bair’s statement in this article stunned me! I’m surprised she would have said this: [emphasis mine]

FDIC paints bleak banking picture

Banks post loss of $26.2 billion in fourth quarter
By Greg Morcroft, MarketWatch
Last update: 4:19 p.m. EST Feb. 26, 2009

NEW YORK (MarketWatch) — Banks insured by the FDIC posted a collective loss of $26.2 billion in the fourth quarter of 2008, the agency said Thursday, as the percentage of charged off loans tied a quarterly record of 1.91%.

[...]

Bair said the fund’s reserve ratio, a measure of the funds it has compared to the costs it might face to cover bank failures, fell to its lowest level since 1993 during the fourth quarter.

“The December figure is the lowest reserve ratio for a combined bank and thrift insurance fund since June 30, 1993, when the reserve ratio was 0.28%,” the agency said in a press release.

That could pose problems for the FDIC should it be called on to cover the failure of any very large institution, Bair said.

She said there are limits to what the FDIC can do, and that it may not have the resources to take over a major financial institution.

Twelve insured firms failed during the fourth quarter, and they cost the FDIC $4.5 billion.

Full grim article here:

http://www.marketwatch.com/news/story/FDIC-paints-bleak-banking-picture/story.aspx?guid=%7bAD2B796C-DC21-45AA-97D0-524CEF8FF55A%7d&print=true&dist=printMidSection

]]> By: lark http://www.noquarterusa.net/blog/15673/going-all-in/#comment-1149958 lark Fri, 27 Feb 2009 09:15:53 +0000 http://www.noquarterusa.net/blog/?p=15673#comment-1149958 Pathological lying. The problem is that a disease like that cannot be treated while he is president. As president it needs to take its course and take the country towards chaos. A president with a pathological lying syndrome. Who would have thunk? Pathological lying. The problem is that a disease like that cannot be treated while he is president. As president it needs to take its course and take the country towards chaos.

A president with a pathological lying syndrome. Who would have thunk?

]]> By: lark http://www.noquarterusa.net/blog/15673/going-all-in/#comment-1149956 lark Fri, 27 Feb 2009 09:08:00 +0000 http://www.noquarterusa.net/blog/?p=15673#comment-1149956 I gave a solution not so long ago when the problem started. The government role is to simply organize the liquidation of the so called 'bad assets' or 'bad debt' in an orderly and determined fashion. No other. I will not repeat other notions again. Just to repeat that I just support that all the toxic assets do not have to go to auction all at once, thus causing a panic and also heighten the losses. The government just prepares a plan that takes the toxic assets out for auction in a determinate and mindful way. Period. Case close. Just policing the sale of toxic assets. After that we will recover. I gave a solution not so long ago when the problem started. The government role is to simply organize the liquidation of the so called ‘bad assets’ or ‘bad debt’ in an orderly and determined fashion. No other. I will not repeat other notions again. Just to repeat that I just support that all the toxic assets do not have to go to auction all at once, thus causing a panic and also heighten the losses. The government just prepares a plan that takes the toxic assets out for auction in a determinate and mindful way. Period. Case close. Just policing the sale of toxic assets. After that we will recover.

]]> By: TeakwoodKite http://www.noquarterusa.net/blog/15673/going-all-in/#comment-1149911 TeakwoodKite Fri, 27 Feb 2009 06:20:39 +0000 http://www.noquarterusa.net/blog/?p=15673#comment-1149911 Approaching $12 trillion...* point 10%...times ahhh ummm ahhhh, 1.2 trillion.... and what was the size of my budget? By the way, as BO was up there at the SOTU, saying that he will not do supplementals, the very next day it was report the Penta-gone will have these rolling up to the hill for the next 10 years. $3.5 trillion, the paper said BO! (Doesn't this guy read his own PDB's?) -------------------- LD, was it just a fluke that I was flippin'channels and "China Town" is on? -------------------------------------- <blockquote>Woman: What makes saloonkeepers so snobbish? Banker: Perhaps if you told him I ran the second largest banking house in Amsterdam. Carl: Second largest? That wouldn't impress Rick. The leading banker in Amsterdam is now the pastry chef in our kitchen. Banker: We have something to look forward to. </blockquote>.Casablanca Approaching $12 trillion…* point 10%…times

ahhh ummm ahhhh, 1.2 trillion…. and what was the size of my budget?

By the way, as BO was up there at the SOTU, saying that he will not do supplementals, the very next day it was report the Penta-gone will have these rolling up to the hill for the next 10 years.

$3.5 trillion, the paper said BO! (Doesn’t this guy read his own PDB’s?)
——————–
LD, was it just a fluke that I was flippin’channels and “China Town” is on?
————————————–

Woman: What makes saloonkeepers so snobbish?
Banker: Perhaps if you told him I ran the second largest banking house in Amsterdam.
Carl: Second largest? That wouldn’t impress Rick. The leading banker in Amsterdam is now the pastry chef in our kitchen.
Banker: We have something to look forward to.

.Casablanca

]]> By: socalannie http://www.noquarterusa.net/blog/15673/going-all-in/#comment-1149901 socalannie Fri, 27 Feb 2009 05:58:46 +0000 http://www.noquarterusa.net/blog/?p=15673#comment-1149901 Was this speech from last Fall? I've always liked Dennis. Would much rather have had him for prez. Was this speech from last Fall? I’ve always liked Dennis. Would much rather have had him for prez.

]]> By: socalannie http://www.noquarterusa.net/blog/15673/going-all-in/#comment-1149896 socalannie Fri, 27 Feb 2009 05:52:18 +0000 http://www.noquarterusa.net/blog/?p=15673#comment-1149896 I know. Everyone I know is dealing with pay cuts, or losses with other income. I honestly can't think of anyone who isn't hurting financially one way or another. Very scary. I know. Everyone I know is dealing with pay cuts, or losses with other income. I honestly can’t think of anyone who isn’t hurting financially one way or another. Very scary.

]]> By: socalannie http://www.noquarterusa.net/blog/15673/going-all-in/#comment-1149892 socalannie Fri, 27 Feb 2009 05:42:44 +0000 http://www.noquarterusa.net/blog/?p=15673#comment-1149892 I agree with you Mossy. I agree with you Mossy.

]]> By: EWard http://www.noquarterusa.net/blog/15673/going-all-in/#comment-1149877 EWard Fri, 27 Feb 2009 05:10:30 +0000 http://www.noquarterusa.net/blog/?p=15673#comment-1149877 Seattle Moss With all due respect, housing in CA is becoming more affordable. According to CNBC, CA had an increase of sold homes because buyers were scooping up foreclosures. Any seller has to price their home low enough to adjust to this housing market. My nephew and his family were able to buy a foreclosed home in Sacramento for $225,000. The administrative assistant at my office bought her first home for $150,000. I know of individuals that have placed downpayments of several hundred thousand dollars and are losing their homes. Why? Because they owe more on their mortgage than their home is worth. For these individuals, I hope the stimulus plan can assist them in keeping their homes. However, the economic programs will not help the people with low paying jobs, no down payment, and a bad credit history. Seattle Moss

With all due respect, housing in CA is becoming more affordable. According to CNBC, CA had an increase of sold homes because buyers were scooping up foreclosures. Any seller has to price their home low enough to adjust to this housing market. My nephew and his family were able to buy a foreclosed home in Sacramento for $225,000. The administrative assistant at my office bought her first home for $150,000.

I know of individuals that have placed downpayments of several hundred thousand dollars and are losing their homes. Why? Because they owe more on their mortgage than their home is worth. For these individuals, I hope the stimulus plan can assist them in keeping their homes.

However, the economic programs will not help the people with low paying jobs, no down payment, and a bad credit history.

]]> By: Babs http://www.noquarterusa.net/blog/15673/going-all-in/#comment-1149869 Babs Fri, 27 Feb 2009 04:55:31 +0000 http://www.noquarterusa.net/blog/?p=15673#comment-1149869 Can't wait until all the rah-rah college kids who supported Obama get out in the real world, can't find a job because of sky-rocketing unemployment, and if they do get a job, find inflation and higher taxes result in a much more spartan lifestyle than the one mommy and daddy gave them. Same goes for the poor latte liberals who will find their favorite Starbucks closed, and their big paychecks being eaten away by more and more local, state and federal taxes. I could almost excuse their misplaced passion in the primaries and the GE, as President Bush really did a job for the case of supporting Democrats, but now I find that passion lethal to the America my kids and grandkids will inherit, and I am frightened, so frightened, for all of us. Can’t wait until all the rah-rah college kids who supported Obama get out in the real world, can’t find a job because of sky-rocketing unemployment, and if they do get a job, find inflation and higher taxes result in a much more spartan lifestyle than the one mommy and daddy gave them. Same goes for the poor latte liberals who will find their favorite Starbucks closed, and their big paychecks being eaten away by more and more local, state and federal taxes. I could almost excuse their misplaced passion in the primaries and the GE, as President Bush really did a job for the case of supporting Democrats, but now I find that passion lethal to the America my kids and grandkids will inherit, and I am frightened, so frightened, for all of us.

]]> By: r2d2 http://www.noquarterusa.net/blog/15673/going-all-in/#comment-1149861 r2d2 Fri, 27 Feb 2009 04:47:09 +0000 http://www.noquarterusa.net/blog/?p=15673#comment-1149861 There are more choices than bailout or bankruptcy. There are more choices than bailout or bankruptcy.

]]> By: Patience http://www.noquarterusa.net/blog/15673/going-all-in/#comment-1149856 Patience Fri, 27 Feb 2009 04:30:09 +0000 http://www.noquarterusa.net/blog/?p=15673#comment-1149856 LD, I read about all this earlier today and I'm with you -- there's no way only the top 2% will see tax increases, considering the profligate spending proposed. The POTUS said those families earning under $250,000 will contribute via taxation "not one dime". He's a lawyer and they can be manipulative linguists. I suspect that the truth is that those under $250,000 will be taxed "many many thousands of dimes", not <em>just</em> one dime. LD, I read about all this earlier today and I’m with you — there’s no way only the top 2% will see tax increases, considering the profligate spending proposed.

The POTUS said those families earning under $250,000 will contribute via taxation “not one dime”. He’s a lawyer and they can be manipulative linguists. I suspect that the truth is that those under $250,000 will be taxed “many many thousands of dimes”, not just one dime.

]]> By: r2d2 http://www.noquarterusa.net/blog/15673/going-all-in/#comment-1149846 r2d2 Fri, 27 Feb 2009 04:10:07 +0000 http://www.noquarterusa.net/blog/?p=15673#comment-1149846 More spending from the Democratic Congress, more taxes and higher rates interest rates spell a stagnating economy with high unemployment for years to come. More spending from the Democratic Congress, more taxes and higher rates interest rates spell a stagnating economy with high unemployment for years to come.

]]> By: Seattle Moss http://www.noquarterusa.net/blog/15673/going-all-in/#comment-1149841 Seattle Moss Fri, 27 Feb 2009 03:54:43 +0000 http://www.noquarterusa.net/blog/?p=15673#comment-1149841 SF The economy of scale has been out of sinc for many years. 90% of first time buyers can't buy homes in your state. Government for the past 60 years has tried to make housing affordable. Now the government is throwing trillions in an effort to keep housing unaffordable. In other words keeping the Housing Ponzi system in place despite that it is still a house of cards. The market needs to correct itself in housing and whether we let it correct naturally or with trillions spent the market will correct nonetheless. http://patrick.net/housing/crash.html SF
The economy of scale has been out of sinc for many years. 90% of first time buyers can’t buy homes in your state.
Government for the past 60 years has tried to make housing affordable. Now the government is throwing trillions in an effort to keep housing unaffordable. In other words keeping the Housing Ponzi system in place despite that it is still a house of cards.
The market needs to correct itself in housing and whether we let it correct naturally or with trillions spent the market will correct nonetheless.
http://patrick.net/housing/crash.html

]]> By: Doc99 http://www.noquarterusa.net/blog/15673/going-all-in/#comment-1149836 Doc99 Fri, 27 Feb 2009 03:46:32 +0000 http://www.noquarterusa.net/blog/?p=15673#comment-1149836 59% of Americans feel <a href="http://www.rasmussenreports.com/public_content/politics/general_politics/59_still_believe_government_is_the_problem" rel="nofollow"> Government is the Problem.</a> 59% of Americans feel Government is the Problem.

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