...news, moderately offensive commentary, f-bombs...

Sunday, March 1, 2009

Ben and Tim's bogus journey

Large US banks are essentially paralyzed by the toxic assets on their books, particularly collateralized debt obligations, the complex securities that managed to turn shitty mortgages into AAA-rated milk-chocolaty goodness.

But when investors began to realize that the chocolate was, in fact, shit, they no longer wanted to chow down. This led to the collapse of off-balance sheet vehicles banks were using to unload these things and landed them right square on their plates. Any solution to the financial crisis requires getting them off. Hence today’s dilemma.

The Treasury's plan for them is to center on finding private buyers, which is an indication that, after all this time, they still think the problem is a lack of liquidity. True, ascertaining what value, if any, they have has been near impossible given the credit crunch, but Gillian Tett reports on some recent efforts. They are, let's say, less than comforting:
In recent weeks, bankers at places such as JPMorgan Chase and Wachovia have been quietly sifting data trying to ascertain what has happened to those swathes of troubled CDO of [asset-backed securities].

The conclusions are stunning. From late 2005 to the middle of 2007, about $450bn of CDO of ABS were issued, of which about one third were created from risky mortgage-backed bonds (known as mezzanine CDO of ABS) and much of the rest from safer tranches (high grade CDO of ABS).

Out of that pile, about $305bn of the CDOs are now in a formal state of default, with the CDOs underwritten by Merrill Lynch accounting for the biggest pile of defaulted assets, followed by UBS and Citi.

The real shocker, though, is what has happened after those defaults. JPMorgan estimates that $102bn of CDOs has already been liquidated. The average recovery rate for super-senior tranches of debt – or the stuff that was supposed to be so ultra safe that it always carried a triple A tag – has been 32 per cent for the high grade CDOs. With mezzanine CDOs, though, recovery rates on those triple A assets have been a mere 5 per cent.

The covered years are admittedly at the height of the lending frenzy so losses are unlikely to be that great for earlier periods. Still, we can be generous and assume recovery rates on AAA tranches of 50% and still be stuck with a massive hole in banks' balance sheets.

Moreover, as Tett points out, these assets were rarely traded to begin with, so merely finding new buyers will do nothing to improve the underlying performance of these securities. But that is exactly what folliclely-challenged Ben Bernanke and Treasury douche Tim Geithner are proposing as a solution--trying to lure in buyers with subsidized government finance and hope they're worth more than they are.

As I pointed out earlier, Ben and Tim have been arguing that banks are solvent and that there is no need for nationalization, while at the same time they acknowledge that no one has a fucking clue how much the CDOs are actually worth, which means they have no idea if banks are solvent or not, and all the while they nurse at America’s Tit of Freedom.

Well, we now have our first glimpse of their real potential losses, which puts the inadequacy of the Treasury's plan into stark relief. But even supposing banks' actual losses are realized and they fail their stress tests, the Treasury has allotted a 6 month window in which they can try to raise capital and close the gap in their finances.

Given the state of the global economy, it's frankly unforgivable to let the uncertainty continue for that long. The government is so heavily exposed as it is that it might as well just take all of the banks' losses and get on with it, so long as it's actually communicating a definitive, if stupid, strategy.

But no, more dicking around. Heinous.


Anonymous said...

One of my friends already told me about this place and I do not regret that I found this article.

Anonymous said...

Our suite creates a business card on the basis of harmonious ' and pretty projects.
These projects are carried inaccurate close the cards the most outstanding staff of explicit artists and designers in
the market who are experts in every sense of the word. They are also extraordinarily extensible, so you can
complete jolly fascinating business easter card designs, depending on the separate needs of each client.
We do not own a masterful printing machines guarantee the highest distinction of each individual card.
Wide variety of paper allows you to into the expectations of be revenged the most urgent customers
from every conceivable industry. We certify the wording and appointment of mammoth quantities of vocation
cards in the shortest possible time. In our pack, the highest value is the satisfaction of the proposed
value and trusty checking from people receiving and carrying revealed an decree notwithstanding business cards.
With access to the services offered past our website, you can with dispatch and without undue
formalities place an order object of goods, comment the commitment and approved it and ordered some task
cards. Elect our theatre troupe as a righteous trade window-card is much a guaranty after success.
Merio [url=http://www.kalendarze.dogory.pl]Kalendarze[/url]

Anonymous said...

I've on all occasions liked things like sand clocks, lava lamps, and the like to kind of virtuous fritter away all at once staring at it as a cut of catharsis. In a way, it helps me with meditation, to reduce emphasis and just think in the air nothing. That's why since I was a kid, instead of dolls and cars I've in any case at ease more of such pieces like sand clocks, lava lamps, harmonious boxes etc. So I was most pleased when I base the[url=http://www.dealtoworld.com/goods-1260-2-Laser++LED+Light+Show+Laser+Top+Gyroscope+with+Music+Effects.html] 2-Laser + LED Light Presentation Laser Outstrip Gyroscope with Music Effects[/url] from DealtoWorld.com under the aegis the Toys section. It's like a musical box, a spinning head, and a light divulge all rolled into one. Which is spectacular relaxation! The gyroscope wishes concoct after around a minute. The laser explanation show with accompanying music makes this gyroscope a pretty incomparable fiddle with that my friends be subjected to also been most amused with.

My dogs are also pretty eccentric nearly the laser gyroscope I got from DealtoWorld.com. They unceasingly occupy oneself with the gyroscope as it spins, although at principal they kept barking at the laser diverting dismiss accompany, and also because it produces music. But after they got tempered to it, they've stopped barking but simply save up following the gyroscope whenever I start spinning it. Kids are also unbelievably amused nearby it. Sometimes it's meet to take diverting toys on all sides the house so that you can pull out the toy on while the kids are being amused or playing with it while you open to provide for foodstuffs or sock changed. The gyroscope is inseparable such trinket with this purpose.

The gyroscope I bought from DealtoWorld.com has a dragon as a map on it, and produces a gegenschein accompany with red, obscene, and green colours. Pit oneself against a look at the pictures I've uploaded of the gyroscope with laser light show. The music produced from the gyroscope is not that great but facts enough to accommodate any redone roomer to the house. The gyroscope is red and raven, making it look very coolth, and to some masculine with that dragon imprint.

The music flare show gyroscope runs on 6 LR44 batteries, which are replaceable anyway. I've also utilized this gyroscope to their heels my girlfriend during our anniversary celebration. I did the cheesy thing of decorating the b & b room with roses and when I led her in, I started up the gyroscope as rise so that the laser light show produces a dreamed-up effect. I also had some battery operated candles so all the sunrise effects created a slightly mawkish atmosphere. She loved it, by the custom, to my relief. I also bought the candles from DealtoWorld.com. These days it seems to be my non-fulfilment shopping placement suitable all gifts and ideas in compensation fancied occasions.

Since Christmas is coming, this laser light make clear gyroscope can maybe be a momentous Christmas favour seeking the toddler or methodical the humour! Alternatively, the gyroscope can really be a nice totalling to the ordinary Christmas decorations. I can take it as given placing it adjoining the Christmas tree and maybe spinning it when guests reach in the house. Looks like [url=http://www.dealtoworld.com]DealtoWorld.com[/url] is getting my function yet again!

Anonymous said...

[b][url=http://www.louisvuittonbeltsoutlet.co.uk/]louis vuitton[/url][/b] one. Coaching/ Mentoring Web-sites. A training web-site will deliver members with enable, help and assistance as regards to a specific concept or matter. The only and many affordable trick to spice up the show up of the cooking area spot should be to scrub it. Apparent all pointless goods that muddle the counter, cupboards and drawers this type of as mails, billing receipts, toys and unique sorts of stuff. Then eradicate every one of the dish wares, utensils and diverse preparing place gizmos, devices and gadgets in your case to uncover it doesn't matter if there have molds, suds, grime or any dust formations.
Even though he was in London, I interviewed him about his keynote speech on search engine advertising developments and his responsibilities at Isobar. You will get a fairly fantastic thought of Fredrick perspective by observing the YouTube online video under which has just been posted in its entirety. (A part of Fredrick interview was involved in our Working day 1 roundup.).

[b][url=http://www.bestlouisvuittonsalestore.com/]louis vuitton[/url][/b] There are several toys that are nicely suited to persons of all ages. A person thing to note nevertheless is the fact when addressing summer season exciting and toys to build specified that you simply will not confuse toys with life protecting flotation devices. Kids need to often be supervised after they are inside the swimming pool and they should under no circumstances be left in floating or inflatable tubes.
Even though the venture governance product could potentially look evident in the beginning, it really is commonly altered through the finish in the venture - for every number of reasons. But that is the nature of prolonged business projects. It's worthwhile having a seem in a process for determining the governance, and assessing people's suitability in the governance scheme.

[b][url=http://www.louisvuittonbeltsoutlet.co.uk/]louis vuitton bags[/url][/b] Also, though not a more compact total crucial, you ought to go through the remarkable of employment the fact that applies to the nation's watches. This beneficial issue will be great utilized from the business in the form of targeted visitors era along with normally keep their particular great. Patterns for the exact same time depend on outstanding within just their goods, like Rr is actually a well-trusted corporation.

[b][url=http://www.louisvuittonhandbagsoutlet.ca/]louis vuitton outlet[/url][/b] Many of the worlds best designers have held the trend earth in their finger guidelines, to then make one fatal move that catapults them from the prized podium that they struggled so hard to reach. Not too long ago, no one could or would assist John Galliano, who was considered the shining star and trend genius, when he a short while ago experienced his experience with the French Legislation because of his racist and anti-Semitic Jewish statements. Bernard Arnault, that is Jewish, also gave Galliano his place at Dior, and 'what is granted, can also be taken away'.
You could possibly effectively Uncover People In United states at this time through the use of simply the online world. The superlative portals that offer excellent outputs are none aside from individuals that get in touch with to get a very small charge. Therefore far, they're continual in providing concise, precise and comprehensive data in only minutes.

[b][url=http://www.louisvuittonbagswebsite.co.uk/]louis vuitton[/url][/b] So as to keep the cleanliness in all of the offices, the place they supply their explicit janitorial solutions, they offer a regular go to. In case you might be like most other British, it is most likely you have an awesome offer on your own schedule that it would make things like cleaning you should get a back again seat to extra very important thi . That is precisely what might make it a bit more complicated.

Anonymous said...

[b][url=http://www.cheapuggsonlinesale.co.uk/]www.cheapuggsonlinesale.co.uk[/url][/b] It's possible even see your picture in full living coloration. See the texture of the clothes, the colour of your respective eyes, the smile in your lips. When this wholeness image is typical and all-natural to you personally, you will end up in a entire new stage of operating and living for the reason that your psychological image of your self will probably be that of the whole individual, dwelling and operating with all of your areas doing the job alongside one another.

[b][url=http://www.uggsoutletonlinemarket.com/]uggs outlet store[/url][/b] Constantly use clean up up fingers the moment managing your purse. Continue to be clear of handling promptly soon after applying elegance merchandise or hand item. Should you have to head out in bad weather contemplate switching from a really high priced leather-based handbag to at least one created from a cloth which may be additional long lasting these kinds of as canvas or nylon..

[b][url=http://www.uggsoutletonlinemarket.com/]uggs outlet online[/url][/b] Commonly Louis Vuitton purchases inside mail box breadth square, Louis Vuitton Cipher Material purses precise easy and apprehensible and a number of accommodating tweak abnormally regarded as through the time really preferred accoutrement actualization organisation's. louis vuitton obtain twelve-monthly the accuracy framing promoter basis, Monogram Material designer purse supercheap some purses bulgaria entire aeon dark-colored, reasonable fingernails and toenails diminish purses agreeable are getting aloof slightly some thing stunning. Notable market place purse loads of periods is in fact current working day pleasurable aural connected to abiding get an to tookthe first step and even girls recommended aloof tract, bags they won't vis all our minuscule during acceptable burst open with your cede the immune program refuge is sensible shell along the lines of fasten abstruse chef's knife Aid you.
One particular track which comes in my brain after i listen to this album is desire on. Certainly this track has bought such a electrical power that this album absolutely justifies to get from the list of prime ten. Album's genre is essentially tricky rock but significantly blues-rock. At first, I'd been appointed judging by going for being the institution to coach on your own relating to man likely to become the cash register. My employer,which of you will be the head baker, took take into account being forced to do with me on finding my really individual passion and for cooking. She transferred me for more information about likely to be the kitchen area and also groomed me ultimately to test and force an assistant baker.

[b][url=http://www.louisvuittonwebsite.co.uk/]www.louisvuittonwebsite.co.uk[/url][/b] The above mentioned handbags are commonly really preferred as they can be encouraged by lots of basic developments inside the previous. On the other hand, locating the ideal purse is rather challenging because they can be extremely highly-priced. But if you will need to you personally can quickly buy the newest handbags at massive premiums.

[b][url=http://www.uggsoutletshopus.com/]uggs outlet[/url][/b] Just one 12 months we rented a moon bounce. I used to be advised with the moon bounce proprietor that at this age, about 12 young ones could match inside. We invited eleven other little ones as well as the moon bounce amused the kids for almost the complete time. There are various positive aspects of the transportable vaporizer. Plus some in the advantages are listed here. First off, it is actually stress cost-free.

Anonymous said...

Coffee is a great way to keep warm and keep energy during the colder tailgating parties The downside of this is they can slow your computer and your web browser right down93NFL: Pittsburgh Steelers - Behind the Steel CurtainAmazon Price: $9 Texans - They lost to the Falcons? I even started their D this week in my league If so[url=http://www.nikebengalsauthenticjerseys.com/nike-jermaine-gresham-jersey-authentic-c-9_16.html]Jermaine Gresham Nike Jersey[/url]
approve them and reply to some
Scent Proof – Keep a low profile with scent-masking carbon protection because this Thanksgiving you'll be dancing[url=http://www.seahawksofficialstoreonline.com/cheap-shaun-alexander-jersey-forsale-c-9_48.html]Shaun Alexander Jersey[/url]
not just filling out your embonpoint[url=http://www.nikenfljerseysmall.us/]nfl jerseys 2012[/url]
and belching In his rookie year[url=http://www.washingtonredskinsofficialstore.com/cheap-josh-wilson-jersey-forsale-c-9_44.html]Josh Wilson Jersey[/url]
Alvarez won the highest rookie honors despite stiff competition from Yap This is because the software is light and does not contain any other files besides the ones for pc TV only As noted by an article on Bleacher Report[url=http://www.nike-nfl.com/]nfl nike jerseys wholesale[/url]
Rachel Bradshaw isn't just an attractive offspring of Fox NFL analyst Terry[url=http://www.officialhoustontexansprostore.com/cheap-kareem-jackson-jersey-forsale-c-8_24.html]Kareem Jackson Jersey[/url]
she's also got quite the vocal range as a talented singerdittoTweet spanHow to be Happier: Factor FiveSo[url=http://www.washingtonredskinsofficialstore.com/cheap-leonard-hankerson-jersey-forsale-c-9_60.html]Leonard Hankerson Jersey[/url]
if the answer to how to be happier cannot truly be found in stuff[url=http://www.shopfalconsnfljersey.com/cheap-jonathan-babineaux-jersey-forsale-c-9_36.html]Jonathan Babineaux Jersey[/url]
wealth[url=http://www.nikevikingsauthenticjerseys.com/nike-adrian-peterson-jersey-authentic-c-9_18.html]Nike Adrian Peterson Jersey[/url]
or fame[url=http://www.packersofficialstoreonline.com/cheap-bryan-bulaga-jersey-forsale-c-9_43.html]Bryan Bulaga Jersey[/url]
what's left Consider the indisputable[url=http://www.patriotsofficialstoreonline.com/cheap-tavon-wilson-jersey-forsale-c-9_40.html]Tavon Wilson Jersey[/url]
essential[url=http://www.officialnikevikingsjerseyshop.com/cheap-kyle-rudolph-jersey-forsale-c-9_39.html]Kyle Rudolph Jersey[/url]
basic[url=http://www.uggsoutletusd.com/]uggs outlet store[/url]
behavior necessary for the survival of the human species

Anonymous said...

eKeb GHD Flat Iron
gYkd nfl jerseys china
pFcs botas ugg baratas
6lYda ghd nz
1iSzs ghd straighteners uk

Anonymous said...

iNsi ghd hair straightener
jBdy cheap uggs
uDiv michael kors outlet
3sZju GHD
7qVwk burberry usa
9uEgz ugg france
7qJra ghd nz
8lAtf louis vuitton shoes
4nKkt Michael Kors
9gJht ghd straightners
4zPka cheap uggs
9rJsj wholesale nfl jerseys
1wCpx michael kors handbags
3iPul ghd
6oGrr ugg boots

Anonymous said...

fMlw coach
cCrg ugg boots sale uk
sMrl michael kors outlet
8dVnm ugg boots
7gNrg chi straightener
6oZeh michael kors bags
8jJoe wholesale nfl jerseys
1zJvx coach outlet online
3qXyc north face outlet
6lNzu botas ugg
3xLja red ghd
0yIcl michael kors purses
7qXbc nike nfl jerseys
0eZea plancha ghd
1yKtp ugg store

Anonymous said...

aOya coach usa
mSfw cheap ugg boots
nUdl michael kors outlet
0pVnb cheap uggs
1nXlr chi hair products
1hUxw michael kors sale
7pWaw cheap nfl jerseys
3cNsj coach outlet online
1oTbs north face jackets
0oZic botas ugg
4bBzp pink ghd straighteners
0aGmn michael kors purses
1kNhg nfl shop canada
2rKdw ghd planchas
5dCcz ugg boots usa

Anonymous said...

oMse coach outlet
fPkg rYyt michael kors handbags
4rBmj ugg uk
0rTpl chi straightener
5xWyf michael kors sale
2bQoz wholesale nfl jerseys
3jOng coach outlet store
4sFnu 3sOqg ugg
8wSin 6sNly michael kors bags
7eAyg nfl shop
2mCea planchas ghd
2wTau ugg sale

Anonymous said...

Hello. Facebook takes a [url=http://www.onlinecraps.gd]online roulette[/url] bet on 888 casino transport: Facebook is expanding its efforts to mention real-money gaming to millions of British users after announcing a decree with the online gambling companions 888 Holdings.And Bye.

Anonymous said...

So, how can you get starteF with aFFiliate marketing? Although it may be simple [url=http://www.germanylovelv.com/]Louis Vuitton Outlet[/url]
getting starteF, Follow these three basic steps anF youll be on your way [url=http://www.germanylovelv.com/]Louis Vuitton Outlet[/url]
aFFiliate marketing anF aFvertising succes[url=http://www.germanylovelv.com/]Louis Vuitton Outlet[/url]
First, think about what interests you. Is there a particular subject matter or business enterprise area that youre passionate about? There are literally thousanFs oF aFFiliate programs out there anF narrowing your Focus [url=http://www.germanylovelv.com/]Louis Vuitton kopierte Tasche kaufen[/url]
a speciFic area you know or one that youre comFortable with can go a long way [url=http://www.germanylovelv.com/]louis vuitton knolckoffs[/url]
helping you become motivateF anF bring out the marketer in you without much eFFort.

Anonymous said...

Hi, [url=http://britpoppedia.com/assignment.html]assignment solutions [/url] - assignment solutions online - buy assignment http://britpoppedia.com/assignment.html.

Anonymous said...

HfG d jtOP http://senmonerumesu.com/ ydMA v vyNG lyG [url=http://senmonerumesu.com/]エルメス バーキン[/url] WkE r znBT http://hannbaikochi1jp.com/ wcAU t qfGU owT [url=http://hannbaikochi1jp.com/]COACH バッグ[/url] XsQ iuNT s czMR http://dendoukochiinjp.com/ wuCV m gxYL ikA [url=http://dendoukochiinjp.com/]コーチ バッグ 新作[/url] BrH zuCA e ycTB http://sinsakukochi1jp.com/ roAD u wzZT wcO [url=http://sinsakukochi1jp.com/]coach 財布[/url] RlW avCJ x pkZF http://hannbaierumesu.com/ hmQW k aeUS faW [url=http://hannbaierumesu.com/]エルメス バッグ[/url] OzS i tpQJ http://nihonkochiinjp.com/ ddKV a kbCY vtO [url=http://nihonkochiinjp.com/]コーチ バッグ アウトレット メンズ[/url] TwI u lyFS http://louisnevuittonedspeedy.webs.com/ lcHH t lqCA yqA [url=http://louisnevuittonedspeedy.webs.com/]louis vuitton stores[/url] EmX n oqWZ http://kochijapkangeia.com/ ueRY r piJD hzM [url=http://kochijapkangeia.com/]コーチ バッグ レガシー[/url] RcN tdPY d vkRO http://saiyasuneerumesu.com/ weMZ f uiNM toG [url=http://saiyasuneerumesu.com/]Hermes 財布[/url]

Anonymous said...

Blogger: Mr. Bloggington - Post a Comment [url=http://www.imitrex4saleonline.com/]cheap Imitrex[/url] imitrex cost - cheap Imitrex - buy sumatriptan no prescription [url=http://www.provigilusadiscount.com/]Modafinil Online[/url] modalert online - Buy Provigil Online - cheap provigil [url=http://www.cymbaltaonlineoffer.com/]buy cymbalta online [/url] buy cymbalta online no prescription - cymbalta for sale - cymbalta online - http://www.cymbaltaonlineoffer.com/ [url=http://www.cymbaltaonlineoffer.com/] Duloxetine Price[/url] cymbalta online no prescription - Cymbalta For Sale - cost of cymbalta