When will the sheeple get fed up with what is happening? I hope sooner than later.
Sunday, November 21, 2010
Saturday, November 20, 2010
Six More To The Banking Morgue
Tifton Banking Company--Tifton, GA
Copper Star Bank--Scottsdale, AZ
First Banking Center--Burlington, WI
Gulf State Community Bank--Carabelle, FL
Allegiance Bank of North America--Bala Cynwyd, PA
Darby Bank & Trust--Vidalia, GA
Copper Star Bank--Scottsdale, AZ
First Banking Center--Burlington, WI
Gulf State Community Bank--Carabelle, FL
Allegiance Bank of North America--Bala Cynwyd, PA
Darby Bank & Trust--Vidalia, GA
Friday, November 19, 2010
I keep Smelling A Rat(s)
A Closer Look At FDIC Bank Closures
I know, we have been smelling a rat for a while. Well when you examine the bank closures closely the stinch becomes quite strong. The above analysis looked a just 38 banks closed by the FDIC between August 6, 2010, and November 12, 2010. Below is the crux of the article.
In the overwhelming majority of cases (30 closings out of 38), resolution of the failures was accomplished by way of the FDIC entering into loss share agreements covering a high percentage of the assets taken over by the successor banks. In connection with these 30 closings, the FDIC entered into new loss-share agreements covering an additional $8.2 billion in assets.
That brings the total face value of assets covered by FDIC loss share agreements up to about $189 billion. As we have discussed in the past, these loss share agreements typically guarantee at least 80% of the value of assets over a period of eight to ten years.
This is another form of quantitative easing being practiced by the federal government.
Taking the 38 failed banks as a whole, they had declared assets of $13.78 billion and deposits of $11.97 billion. The FDIC estimated the closings cost $2.72 billion, meaning the banks’ assets were really only worth $9.25 billion. Overall, bank management overvalued assets by $4.53 billion, around 49%.
Specific examples were far worse:
Maritime Savings Bank of West Allis, Wisconsin, had stated assets of $350.5 million and deposits of $248.1 million. The FDIC estimated its closing cost $83.6 million. Based on that estimate, the bank’s assets were really only worth $164.5 million, and had been overvalued by 113%.
ShoreBank of Chicago, Illinois, had stated assets of $2.16 billion and deposits of $1.54 billion. The FDIC estimated its closing cost about $370 million. Based on that estimate, the bank’s assets were really only worth about $1.17 billion, and had been overvalued by 84%.
Premier Bank of Jefferson City, Missouri, had stated assets of $1.18 billion and deposits of $1.03 billion. The FDIC estimated its closing cost $407 million. Based on that estimate, the bank’s assets were really only worth $623 million, and had been overvalued by 84%.
K Bank of Randallstown, Maryland, had stated assets of $538.3 million and deposits of $500.1 million. The FDIC estimated its closing cost $198.4 million. Based on that estimate, the bank’s assets were really only worth $301.7 million, and had been overvalued by 78%.
Finally, Horizon Bank of Bradenton, Florida, had stated assets of $187.8 million and deposits of $164.6 million. The FDIC estimated its closing cost $58.9 million. Based on that estimate, the bank’s assets were really only worth $105.7 million, and had been overvalued by 78%.
The FDIC’s closure of 38 banks over three months is by no means an insignificant number. However, in the context of the FDIC’s overhang of troubled banks, it suggests the pace of bank closings is being kept artificially low.
As of April 2010, there were about 425 banks operating under serious FDIC enforcement orders that called into question the banks’ solvency. Since then, upwards of 25 new banks have come under such orders each month.
Therefore, closing 13 banks a month has done nothing to reduce the backlog of troubled banks operating in the Country. That backlog could only have grown.
Most likely, the pace of bank closings had been held back artificially by the need to keep up appearances for the benefit of the mid-term elections. With those now behind us, I would expect the pace of bank closings to accelerate considerably.
Let's keep our eyes on this and see if the closings accelerate.
I know, we have been smelling a rat for a while. Well when you examine the bank closures closely the stinch becomes quite strong. The above analysis looked a just 38 banks closed by the FDIC between August 6, 2010, and November 12, 2010. Below is the crux of the article.
In the overwhelming majority of cases (30 closings out of 38), resolution of the failures was accomplished by way of the FDIC entering into loss share agreements covering a high percentage of the assets taken over by the successor banks. In connection with these 30 closings, the FDIC entered into new loss-share agreements covering an additional $8.2 billion in assets.
That brings the total face value of assets covered by FDIC loss share agreements up to about $189 billion. As we have discussed in the past, these loss share agreements typically guarantee at least 80% of the value of assets over a period of eight to ten years.
This is another form of quantitative easing being practiced by the federal government.
Taking the 38 failed banks as a whole, they had declared assets of $13.78 billion and deposits of $11.97 billion. The FDIC estimated the closings cost $2.72 billion, meaning the banks’ assets were really only worth $9.25 billion. Overall, bank management overvalued assets by $4.53 billion, around 49%.
Specific examples were far worse:
Maritime Savings Bank of West Allis, Wisconsin, had stated assets of $350.5 million and deposits of $248.1 million. The FDIC estimated its closing cost $83.6 million. Based on that estimate, the bank’s assets were really only worth $164.5 million, and had been overvalued by 113%.
ShoreBank of Chicago, Illinois, had stated assets of $2.16 billion and deposits of $1.54 billion. The FDIC estimated its closing cost about $370 million. Based on that estimate, the bank’s assets were really only worth about $1.17 billion, and had been overvalued by 84%.
Premier Bank of Jefferson City, Missouri, had stated assets of $1.18 billion and deposits of $1.03 billion. The FDIC estimated its closing cost $407 million. Based on that estimate, the bank’s assets were really only worth $623 million, and had been overvalued by 84%.
K Bank of Randallstown, Maryland, had stated assets of $538.3 million and deposits of $500.1 million. The FDIC estimated its closing cost $198.4 million. Based on that estimate, the bank’s assets were really only worth $301.7 million, and had been overvalued by 78%.
Finally, Horizon Bank of Bradenton, Florida, had stated assets of $187.8 million and deposits of $164.6 million. The FDIC estimated its closing cost $58.9 million. Based on that estimate, the bank’s assets were really only worth $105.7 million, and had been overvalued by 78%.
The FDIC’s closure of 38 banks over three months is by no means an insignificant number. However, in the context of the FDIC’s overhang of troubled banks, it suggests the pace of bank closings is being kept artificially low.
As of April 2010, there were about 425 banks operating under serious FDIC enforcement orders that called into question the banks’ solvency. Since then, upwards of 25 new banks have come under such orders each month.
Therefore, closing 13 banks a month has done nothing to reduce the backlog of troubled banks operating in the Country. That backlog could only have grown.
Most likely, the pace of bank closings had been held back artificially by the need to keep up appearances for the benefit of the mid-term elections. With those now behind us, I would expect the pace of bank closings to accelerate considerably.
Let's keep our eyes on this and see if the closings accelerate.
Thursday, November 18, 2010
Are You Kidding Me?
http://news.yahoo.com/s/ap/20101117/ap_on_bi_ge/us_fed_stimulus
In the above article, Ben Bernake was quoted as saying the latest QE2 stimulus of $600,000,000,000 will create 700,000 jobs over two years. WOW, that is only $857,142.86 per job created. If it takes that much to create a job, then with about 14 million people that is jobless, we will need about 12 Trillion dollars to put everyone back to work.
Is that a good use of YOUR money?
In the above article, Ben Bernake was quoted as saying the latest QE2 stimulus of $600,000,000,000 will create 700,000 jobs over two years. WOW, that is only $857,142.86 per job created. If it takes that much to create a job, then with about 14 million people that is jobless, we will need about 12 Trillion dollars to put everyone back to work.
Is that a good use of YOUR money?
Wednesday, November 17, 2010
Sunday, November 14, 2010
111 Obamacare Waivers- Hides It on Website
What does Darden, Jack in the Box, Atena, Ruby Tuesday, Dish Network, Cracker Barrel, Service Employees Benefit Fund, New England Health Care, Local 25 SEIU, Cigna, Adventist Care Centers, Assurant Health, Captain Elliot's Party Boats and about 92 other comanies have in comman?
They got a wavier from the ObamaCare Bill. That's right, these companies, well their lawyers, was able to petition OUT of the new and upcoming ObamaCare. Why do they want out you might ask? Because they see that it is an added cost to their companies and they would need to layoff employees.
Folks, ObamaCare is a job killer. The problem is the other smaller companies cannot fight and hence they will be required to comply.
They got a wavier from the ObamaCare Bill. That's right, these companies, well their lawyers, was able to petition OUT of the new and upcoming ObamaCare. Why do they want out you might ask? Because they see that it is an added cost to their companies and they would need to layoff employees.
Folks, ObamaCare is a job killer. The problem is the other smaller companies cannot fight and hence they will be required to comply.
Thursday, November 11, 2010
Video You Should Watch
This gives you a little insight into how the markets can be manipulated by the Fed. It is only 29 minutes long. Take some time and view it.
WHAT Did He Say?
At about 0:13 into the video, you can here him say, "Things were being done which were certainly illegal and clearly criminal in certain cases..."
Alan Greenspan, the former Federal Reserve Chairman tells us there was criminal activity happening, so tell me why there are no bankers wearing the shiney nickel plated handcuffs.
Now go back and watch Ben Bernake, the current Federal Reserve Chairman, when Mr. Greenspan mentioned the "illegal and criminal" words.
Alan Greenspan, the former Federal Reserve Chairman tells us there was criminal activity happening, so tell me why there are no bankers wearing the shiney nickel plated handcuffs.
Now go back and watch Ben Bernake, the current Federal Reserve Chairman, when Mr. Greenspan mentioned the "illegal and criminal" words.
Thursday, November 4, 2010
Quantitative Easing is Economic Suicide
This is a must read article. I will highlight some key parts of it for those that don't want to read the whole article (it's not that long, so just read it).
Quantitative Easing is Economic Suicide.
"Quantitative easing is nothing more than a euphemism for printing money out of thin air. Its one-and-only purpose is to destroy the currency being printed. It is pure dilution and absolutely no different than a corporation vowing to improve its fiscal performance simply by printing a lot of new shares."
"Visit Shadowstats.com, operated by respected U.S. economist John Williams, and you will hear that U.S. inflation has been in the range of 8.5% - 9.5% all this year. Williams performs his calculations using the exact same methodology used by the U.S. government a generation ago, before the U.S. government intentionally incorporated various statistical lies into this measurement."
"Understand the enormous "rewards" which a government receives for lying, by grossly under-stating the rate of inflation. Payouts on $100's of billions of U.S. government benefits per year are indexed to the rate of "official" inflation. By grossly understating inflation (and cheating all of the recipients of those benefits), the U.S. government can get an instant, multibillion dollar windfall from that one lie, alone (every year)."
"Here are the facts. Previously, the U.S. government was able to find (real) buyers for its Treasuries, due to the need of other governments to recirculate/reinvest the money from their trade surpluses and fiscal surpluses. Thanks to the Wall Street-engineered "Crash of '08," the vast majority of those surpluses have disappeared.
At the same time, the U.S. government is cranking out much more "supply" than at any other time in the history of the United States. Thus, we are told by the U.S. government (and the Federal Reserve) that there are more "buyers" for U.S. Treasuries than at any time in history -- despite the fact those buyers have no money. But that is literally less than half of this farce.
Not only are we being told that buyers-with-no-money are purchasing more Treasuries than at any other time in history, we're also told that these buyers are joyfully paying the highest prices in history (by a large margin) for these debt instruments. However this still doesn't capture the absurdity of this scenario.
Buyers-with-no-money are (supposedly) buying far more Treasuries than at any time in history, at the highest prices (by far) -- while publicly, all of these "buyers" are expressing severe doubts about the creditworthiness of the U.S. (i.e. its ability to ever make good on this $trillions in new bond debt). Would any sane individual buy the greatest quantity of anything (at the highest prices in history), while publicly expressing severe doubts about the value/quality of that good?
Don't answer that question yet. Since "quantitative easing" must (and does) destroy the value of a currency, for every 1% the dollar loses in value, all of those $trillions in U.S. Treasuries (which are denominated in U.S. dollars) lose the same amount of their own value.
Thus, with U.S. bond-prices at their highest level in history (and at their maximum, theoretical price), it is 100% inevitable that those prices can only fall. This means that buyers-with-no-money are supposedly buying the most "supply" of Treasuries in history, at the highest prices in history - while being 100% certain of losing money on those Treasuries due to their inevitable fall in price and the loss of value of the U.S. dollar. Clearly, there are few buyers for U.S. Treasuries. Instead, "The Three Amigos" of debt (the U.S., UK and Japan) are playing the bond-market equivalent of musical chairs. The UK "buys" U.S. Treasuries, Japan buys UK debt, and the U.S. government buys Japanese bonds -- and all with the "quantitative easing" funny-money they are printing out of thin air. Then all three governments pretend their bond-auctions are "covered."
This brings us to the final element of this charade: U.S. bond market "auctions." At the same time that the U.S. government reported the "economic miracle" of buyers-with-no-money buying more of something they don't want (at the highest prices), just so they can lose money, the U.S. government removed all "transparency" from these bond-auctions. Even bond traders with decades of experience report that they have no idea of who is actually buying these bonds. This is like an amateur magician who is so clumsy in performing his magic that he needs to turn out the lights while executing his tricks so that the audience doesn't immediately spot the ineptitude of his fraud."
"Why has the Federal Reserve been so adamant about fraudulently concealing its actions in the U.S. bond-market, and the quantitative easing that makes that fraud possible? First, in printing up money, but not acknowledging it, the Federal Reserve is literally counterfeiting trillions of dollars of U.S. currency."
"With the obvious fact that the U.S. government never stopped its quantitative easing, this brings us to the current scenario. The entire reason why the Fed is "announcing" something which it is already doing is because even doctored U.S. government statistics can't hide the fact that the U.S. economy is once again collapsing.
Obviously, quantitative easing is not, does not, and cannot "fix" any of the U.S. economy's problems, which (ironically) have all been caused by too much new debt, and new money-printing. So why is the Fed "coming out of the closet" (even just temporarily)? Simply, with the intensifying weakness of the U.S. economy, the Federal Reserve (and the U.S. government) feel an intense need to be seen to be "doing something" (even something it was already doing) -- and neither the U.S. government nor the Fed have any other ideas."
People, it is time to get out of the dollar and into tangibles. If you have not thought about gold or silver, it is past time. Even though gold and silver have increased, I don't think we are anywhere near the top, so you still have time. (I am not a financial advisor, so do your own research and invest as you feel comfortable).
Get prepared, more inflation is on it's way (maybe even hyperinflation).
Quantitative Easing is Economic Suicide.
"Quantitative easing is nothing more than a euphemism for printing money out of thin air. Its one-and-only purpose is to destroy the currency being printed. It is pure dilution and absolutely no different than a corporation vowing to improve its fiscal performance simply by printing a lot of new shares."
"Visit Shadowstats.com, operated by respected U.S. economist John Williams, and you will hear that U.S. inflation has been in the range of 8.5% - 9.5% all this year. Williams performs his calculations using the exact same methodology used by the U.S. government a generation ago, before the U.S. government intentionally incorporated various statistical lies into this measurement."
"Understand the enormous "rewards" which a government receives for lying, by grossly under-stating the rate of inflation. Payouts on $100's of billions of U.S. government benefits per year are indexed to the rate of "official" inflation. By grossly understating inflation (and cheating all of the recipients of those benefits), the U.S. government can get an instant, multibillion dollar windfall from that one lie, alone (every year)."
"Here are the facts. Previously, the U.S. government was able to find (real) buyers for its Treasuries, due to the need of other governments to recirculate/reinvest the money from their trade surpluses and fiscal surpluses. Thanks to the Wall Street-engineered "Crash of '08," the vast majority of those surpluses have disappeared.
At the same time, the U.S. government is cranking out much more "supply" than at any other time in the history of the United States. Thus, we are told by the U.S. government (and the Federal Reserve) that there are more "buyers" for U.S. Treasuries than at any time in history -- despite the fact those buyers have no money. But that is literally less than half of this farce.
Not only are we being told that buyers-with-no-money are purchasing more Treasuries than at any other time in history, we're also told that these buyers are joyfully paying the highest prices in history (by a large margin) for these debt instruments. However this still doesn't capture the absurdity of this scenario.
Buyers-with-no-money are (supposedly) buying far more Treasuries than at any time in history, at the highest prices (by far) -- while publicly, all of these "buyers" are expressing severe doubts about the creditworthiness of the U.S. (i.e. its ability to ever make good on this $trillions in new bond debt). Would any sane individual buy the greatest quantity of anything (at the highest prices in history), while publicly expressing severe doubts about the value/quality of that good?
Don't answer that question yet. Since "quantitative easing" must (and does) destroy the value of a currency, for every 1% the dollar loses in value, all of those $trillions in U.S. Treasuries (which are denominated in U.S. dollars) lose the same amount of their own value.
Thus, with U.S. bond-prices at their highest level in history (and at their maximum, theoretical price), it is 100% inevitable that those prices can only fall. This means that buyers-with-no-money are supposedly buying the most "supply" of Treasuries in history, at the highest prices in history - while being 100% certain of losing money on those Treasuries due to their inevitable fall in price and the loss of value of the U.S. dollar. Clearly, there are few buyers for U.S. Treasuries. Instead, "The Three Amigos" of debt (the U.S., UK and Japan) are playing the bond-market equivalent of musical chairs. The UK "buys" U.S. Treasuries, Japan buys UK debt, and the U.S. government buys Japanese bonds -- and all with the "quantitative easing" funny-money they are printing out of thin air. Then all three governments pretend their bond-auctions are "covered."
This brings us to the final element of this charade: U.S. bond market "auctions." At the same time that the U.S. government reported the "economic miracle" of buyers-with-no-money buying more of something they don't want (at the highest prices), just so they can lose money, the U.S. government removed all "transparency" from these bond-auctions. Even bond traders with decades of experience report that they have no idea of who is actually buying these bonds. This is like an amateur magician who is so clumsy in performing his magic that he needs to turn out the lights while executing his tricks so that the audience doesn't immediately spot the ineptitude of his fraud."
"Why has the Federal Reserve been so adamant about fraudulently concealing its actions in the U.S. bond-market, and the quantitative easing that makes that fraud possible? First, in printing up money, but not acknowledging it, the Federal Reserve is literally counterfeiting trillions of dollars of U.S. currency."
"With the obvious fact that the U.S. government never stopped its quantitative easing, this brings us to the current scenario. The entire reason why the Fed is "announcing" something which it is already doing is because even doctored U.S. government statistics can't hide the fact that the U.S. economy is once again collapsing.
Obviously, quantitative easing is not, does not, and cannot "fix" any of the U.S. economy's problems, which (ironically) have all been caused by too much new debt, and new money-printing. So why is the Fed "coming out of the closet" (even just temporarily)? Simply, with the intensifying weakness of the U.S. economy, the Federal Reserve (and the U.S. government) feel an intense need to be seen to be "doing something" (even something it was already doing) -- and neither the U.S. government nor the Fed have any other ideas."
People, it is time to get out of the dollar and into tangibles. If you have not thought about gold or silver, it is past time. Even though gold and silver have increased, I don't think we are anywhere near the top, so you still have time. (I am not a financial advisor, so do your own research and invest as you feel comfortable).
Get prepared, more inflation is on it's way (maybe even hyperinflation).
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