Uncle Sam’s Dirty Little Secret

dayum!

LarryD GREAT work! Watch ur back too! I’m thinking you have given away all the secrets with this one! BRAVO Sir!

Unfortunately, for all of us, Geithner is a one-man shoe and apparently a control freak. He’s understaffed and apparently doesn’t seem to give a hoot.

Fannie Mae and Freddie Mac will remain in limbo as the U.S. Treasury secretary said the government doesn’t have time now to deal with the future of the two mortgage-finance companies it seized in September.

That One and his shiftless and worthless crew need TO MAKE TIME. Excuses will not work. If they aren’t amenable to finding the requisite time, then perhaps we should “inspire” our elected Representatives to do what is necessary to force those who can make the time on this idiot of a POTUS we’ve been saddled with. I think it is high time the real employers in this country take the reins away from the hired help.

oops! — i.e. one-man show

Administrator:

Can you rescue my comment from the shredder?

Thanks

Ferd

Larry-shouldn’t BO and Geithner be dealing with this potential disaster instead of trying to take on healthcare right now? It all seems like a house of cards.

Another interesting post. Full accountability of every penny is needed at this critical juncture in the country’s present econonic mess; ignoring a problem never resolves it.

You know, Larry, I think this goes back to “narrative accounting.” It’s been going on for a long time and no one has been called on the carpet, as if the day would never come when it all hit the fan. But now that moment is very close. Yet, the insiders are still churning the message because it has always worked before.

The game is up. And sooner rather than later most Americans will realize that and pull out the torches and pitchforks. President Obama made a startling comment while on his European Tour when he warned the banking interests that “he” was the only thing standing between them and the angry mob.

But even Obama’s spell can’t stop the numbers because they are the one thing that do not lie. Those ARMs are going to reset in the fall and continue to damage us into 2011. There’s all sorts of grim fallout on the horizon. Green shoots?? Cut me a break. We’re headed for the weeds. And happy talk won’t do a thing to stop it. It infuriates me and I predict that when Americans realize the extent of the real damage and absolute malfeasance from both political parties and many financial institutions, the howl will be deafening.

The Fed, the Treasury and the Administration, both current and past, lied to us. The MSM has been deliquent in their responsibility. And I won’t even start a rant on the US Congress. But they’ve all failed, miserably.

Batten down the hatches. We’re in for a very rough ride.

Btw, thanks for all you’re doing, Larry. At least we have some analysts willing to keep us informed and have enough respect for the public to actually tell the truth.

You know, when most of us average people start having trouble paying our debts, if we decide to ignore them in hopes they go away, they usually just grow bigger and the bill collectors start harrasing us mercilessly!

“We’re going to begin a process of looking at broader options for

Who’s we? He hasn’t added any staff to help out.
Your thread has left me speechless.
It looks like Geithner is like that one. He is ‘voting present’ so to speak.

Your hunch is startling.

Here’s my hunch: Congress pressures Geuthner into hiring staff. He appoints a Czar who reports to him. Congress has no say. Little by little, Congress has less say about anything, doesn’t know what is going on and is no longer needed. Then constituents have no representation, not that they did much anyway. (half joking) You may know the ending.

To anybody who think that the foreclosure numbers are going to level out yet continue for 2 to 3 more years until all the adjustable have reset and all the prime loans held by people in financial trouble have gone in foreclosures, I have some news for you:

What started in the previous hot spots in Florida, Nevada and California is now spreading all over the country, namely being upside-down.

All the homeowners who do not have any financial problems but who have a life (ie: having children, relocating for their jobs, retiring, etc.) are now facing the ugly reality that if they want to sell their house, they have to come up with cash to close. House prices have fallen so much that equity have vanished and that purchase prices are not covering reimbursement of the mortages. The sellers have to come up with the difference.

This process is now accelerated with the underappraisal of houses. For few weeks, appraisals are coming back so low that the sales cannot go to closing. The banks are underestimating the house values by 10 to 15 %. That means that if you want to close on the sale of your house the price has to be lower by 10 to 15% than its real market value. That 10 to 15% puts many of the home owners upsidedown even in “good” markets.(This is of course a slipery slop as recent sales become comparables and so on and so forth.)

It is therefore completely predictable to see a massive wave of foreclosures of “convenience” coming:
Homeowners who have no financial difficulties electing to “recuperate” the 10-15% loss imposed on them by the underappraisal of their houses, by stopping payments for whatever time it takes to go in foreclosure and working away with cash in their pockets vs. left on the closing tables.

Delaying dealing with Fannie et Freddy is an enormous mistake. By the time they get to it, the problem will be much much bigger than now anticipated.

I warned about all of this last year

http://www.noquarterusa.net/blog/2008/07/18/is-the-house-finally-considering-impeachment-of-bush/

Comment at 2008-07-19 03:20:45

My criticism was of the Congressional leadership, not Democrat voters or non-Politicians.

…

Insetead of having bazillion hearings on non-existant “scandals” where was congress holding hearings on their Frankensteins, Fannie Mae and Freddy Mac?

These are two institutions that , because of Congress, are accountable to no one but Congress.

Of course, it’s only our money on the line, so I guess it’s not important.

…

Meanwhile the Democrat leadership has done nothing at all in the interest of the country since taking power.

Have they cut back spending? no.

Have they moved to reduce the deficit? no

Have they moved to do anything to strenghten the dollar despite the Fed’s determination to make valueless? No.

Have they done anythign to alleviate this crushing cost of food and fuel on the people? No. They welcome it.

Have they done anything to enhance the security of the country? Well yes.. but had to , dragged kicking and screaming all the way.

Are they doing anyting to ensure our first amendment rights are’t threatened by govt regulation or abusive lawsuits by foriegn elements? Nope

They have done nothing.. or worse.. they have prevented measures that will actually be productive.

And there’s a ticking time-bomb.. because the tax cuts of earlier in the decade have expiration dates (who thought of that stupid idea??) these automatic increases are coming:

The tax code changes enacted in 2001 and 2003 are scheduled to expire at the end of 2010. If they do, statutory marginal tax rates will rise across the board, ranging from a 13 percent increase for the highest-income households to a 50 percent increase for lower-income households. The marriage penalty will be reimposed and the child credit cut by $500 per child. The long-term capital-gains tax rate will rise by one-third (to 20 percent from 15 percent), and the top tax rate on dividends will nearly triple (to 39.6 percent from 15 percent). The estate tax will roar back from extinction at the same time, with a top rate of 55 percent and an exempt amount of only $1 million. Finally, the alternative minimum tax will reach far deeper into the middle class, ensnaring 25 million tax filers in its web.

What are they going to do about this? Nothing..

Just who are the Democrats and Republicans in Congress working for? Cuz it aint me.

They are working for their campaign donors, The Investnent Firms and banks that provide the big ticket junkets and campaign dollars, cocktail parties, private jets. And they haven’t even tapped the Insurance and Pharmacuetical dolllars yet. I smell money.

I do not know of any middle class person or home owner who has experience any type of relief in the form of home mortgage assistance. If they have a job, they are still hanging by a thread. Its bad out here and Washington seems to be so unaware.

I see the senate has apologized for slavery well get ready folks pretty soon you are going to hear the word ‘repatriation’, I wonder who is going to have to pay for this ?

I think everybody would like to know more about what to expect in our financial, economical future in our Country and around the World. Read:Globalresearche.ca, I don’t believe everything they say, but some looks really desturbing.