Fri 2010-10-08 21:45 EDT

NO. THERE'S NO LIFE AT MERS

Damian ``DinSFLA'' Figueroa

...MERS was founded by the mortgage industry. MERS tracks ``changes'' in the ownership of the beneficial and servicing interests of mortgage loans as they are bought and sold among MERS members or others. Simultaneously, MERS acts as the ``mortgagee'' of record in a ``nominee'' capacity (a form of agency) for the beneficial owners of these loans...More than 60 percent of all newly-originated mortgages are registered in MERS. Its mission is to register every mortgage loan in the United States on the MERS System. Since 1997, more than 65 million home mortgages have been assigned a Mortgage Identification Number (MIN) and have been registered on the MERS System...Since MERS is a privately owned data system and not public, all mortgages and assignments must be recorded in order to perfect a lien. Since they failed to record assignments when these loans often traded ownership several times before any assignment was created, the legal issue is apparent. MERS may have destroyed the public land records by breaking the chain of title to millions of homes...

Life; MER; s.

New Economic Perspectives Wed 2010-09-29 09:11 EDT

An Interview with Warren Mosler: Modern Money Theory and the Exonomy

Economic Perspectives from Kansas City

...unemployment is evidence of a lack of aggregate demand, so what the world is lacking is sufficient aggregate demand. *In the United States, my prescription includes 1) what we call a payroll tax holiday, i.e., a tax reduction, 2) a revenue distribution to the states by the federal government and 3) a federally funded $8.00-per-hour job for anyone willing and able to work. * *For the euro zone, I propose a distribution from the European Central Bank to the national governments of perhaps as much as 20 percent of GDP to be done on a per capita basis so it will be fair to all the member nations*.

Exonomy; interview; Modern Money Theory; New Economic Perspectives; Warren Mosler.

Dr. Housing Bubble Blog Sun 2010-05-16 15:17 EDT

Housing never really improved -- 10 charts showing the United States housing market is entering the second wave of problems. 1 out of 4 people with no mortgage payment in the last year are still not in the foreclosure process.

To put it bluntly, the U.S. housing market today is in deep water. Nothing exemplifies the transfer of risk to the public from the private investment banks more than the deep losses at Fannie Mae and Freddie Mac. Fannie Mae announced a stunning first quarter loss of $13.1 billion while Freddie Mac lost $8 billion. At the same time, toxic mortgage superstar JP Morgan Chase announced a $3.3 billion profit for Q1. This reversal of fortunes has been orchestrated perfectly by Wall Street. Since the toxic assets were never marked to market, the big losses have been funneled to the big GSEs (and as we will show in this article, now makes up 96.5 percent of the entire mortgage market). In other words, banks are making profits gambling on Wall Street while pushing out mortgages that are completely backed by the government...

1; 10 Charts Showing; 4 people; Dr. Housing Bubble Blog; enters; Foreclosures process; Housing; mortgage payments; problem; really improving; United States housing market; wave; years.

Tue 2010-04-27 08:22 EDT

Anecdotal Economics: A Chicken in Every VAT

...The retail consumer is back, and she* is in the mood to shop, we reliably are told. The Census Bureau reported March 2010 Advance Retail and Food Service Sales improved 7.6 percent from a year ago, and for 1Q2010 are 5.5 percent above 1Q2009...So why do state sales tax revenues tell a different, disconnected story? In the Nelson A. Rockefeller Institute of Government's April 2010 State Revenue Report, which chronicles the woeful status of state tax collections, concludes that sales tax collections fell almost 9.0 percent in 2009, a statistically significant 2.8 percent more than the reported decline in retail and food service sales made up estimated by the Census Bureau...It's a significant disconnect between theory (Census Bureau) and reality (actual sales tax collections), much as the similar, significant disconnect between the Employment Situation reported by the Bureau of Labor Statistics (theory), which appears to be masking the true extent of unemployment in America with all those marginally attached and discouraged workers, and the meaningful decline in actual payroll tax withholdings (reality), as reported by the Treasury Department in its Daily Treasury Statements...

Anecdotal Economics; chickens; VAT.

naked capitalism Thu 2010-04-22 18:57 EDT

More Evidence of Lack of Competitiveness of Many Chinese Exporters

...From Bloomberg: The profits of China's makers of household appliances, automobiles and cell phones may plunge by between 30 percent and 50 percent if the Chinese currency were to strengthen by 3 percent, according to a state media report. Small and medium-size exporters with low price-negotiating powers will face losses and may even go out of business, according to the Xinhua News Agency's Economic Information Daily newspaper, citing the results of a ``stress test.'' ... Richard Kline: ...Not that it matters at all for US manufacturing whether the renminbi notches up or not. Because wealth enterprises in the US don't really give a damn about their host country. Low-value added assembly will simply flow to Vietnam, Bangaladesh, back to Mexico, or the like. An industrial policy presupposes a political policy. And the malefactors of great wealth have complete control of US governmental policy, as we see, and not the least interest in investing in their host country. Great wealth here is parasitical, in a word. Fuddling about with currency rates won't change the political equation at all.

Chinese exports; competitions; evidence; lack; naked capitalism.

Fri 2010-03-12 08:38 EST

AlterNet: The Economic Elite Have Engineered an Extraordinary Coup, Threatening the Very Existence of the Middle Class

David DeGraw, Amped Status

It has now become evident to a critical mass that the Republican and Democratic parties, along with all three branches of our government, have been bought off by a well-organized Economic Elite who are tactically destroying our way of life. The harsh truth is that 99 percent of the U.S. population no longer has political representation. The U.S. economy, government and tax system is now blatantly rigged against us...

AlterNet; Economic elite; engineering; exists; Extraordinary Coup; middle class; threatens.

Sun 2009-10-11 18:48 EDT

The Ongoing Plight of the U.S. "Nightcrawler" - Part 2 | zero hedge

We're just as scroomed as we were a year ago--skying stock markets and gold-hating trolls posting "Gold isn't money" notwithstanding. There is absolutey ZERO chance that the Fed raises their Fed Funds Politburo rates, and a ONE HUNDRED PERCENT CERTAINTY that both the Fed and Uncle Sugar MUST continue their monetizations, back stops and being the "lenders, insurers, and market of last resort" for all things credit, but especially the McHousing market where they have multi-trillion fiatsco exposure. So, it is little wonder that the U.S. fiatsco is getting pounded in the currency casino and that people are piling into PMs in droves--even going so far as to DEMAND physical delivery from the corrupt exchanges, even as the jawboning and pie-holing by the Fed Heads and Treasury twerps continues unabated. Because we are still very much in the midst of the "convulsions" of collapse AND the massive monetary and fiscal insanity the Fed and Uncle are undertaking to fight them.

nightcrawlers; Ongoing Plight; Part 2; U.S.; Zero Hedge.

Willem Buiter's Maverecon Sat 2009-10-10 14:00 EDT

Expect little and you may yet be disappointed

Willem Buiter

...the most disappointing development this year was the performance of president Barack Obama and his administration - and my expectations were modest to begin with...On the fiscal side, Barack Obama is presiding over the biggest peace-time government deficits and public debt build-up ever. According to my back-of-the-envelope calculations there is about a 10 percent of GDP gap between the medium and longer-term spending plans of the Obama administration and the taxes the Congress is willing and able to impose. The reality that you cannot run a West-European welfare state (with decent quality health care, decent pre-school, primary and secondary school education for all), rebuild America's crumbling infrastructure, invest in the environment and fulfill your post-imperial global strategic ambitions while raising 33 percent of GDP in taxes, has not yet dawned on the Obama administration or on the American people at large...Clearly, the qualities one needs to get elected to high office in western democracies are not qualities that are likely to be helpful once you have achieved high office and are expected to govern and lead. To survive the selection process to become president you have to be able to stitch together a coalition of special interests that can provide sufficient financial and sweat equity resources to win this grueling race to the top. Once you get there, you should shed the unfortunate baggage you accumulated on your way up and govern in the interest of all the people. Few can do that. Apparently Obama is not one of them.

disappointment; expectations; Willem Buiter's Maverecon.

Mish's Global Economic Trend Analysis Thu 2009-09-17 09:47 EDT

Consumer Credit Contracts Record $21.6 Billion

Michael Shedlock

U.S. Consumer Credit Falls by a Record $21.6 Billion. U.S. consumer credit plunged more than five times as much as forecast in July as banks restricted lending terms and job losses made Americans reluctant to borrow. Consumer credit fell by a record $21.6 billion, or 10 percent at an annual rate, to $2.5 trillion, according to a Federal Reserve report released today in Washington. Credit dropped by $15.5 billion in June, more than previously estimated. Credit fell for a sixth month, the longest series of declines since 1991.

21; 6; Consumer Credit Contracts Record; Mish's Global Economic Trend Analysis.

Jesse's Café Américain Sun 2009-09-13 12:21 EDT

Signs of an Approaching Decline in US Equities That Could Be Quite Impressive

Jesse

There is a strong correlation between this US equity rally and the Fed monetization of debt, which indicates a 'hot money' flow into US stocks but with thin volumes from a significant market bottom. This points to 'technical price trading' by the financial sector, also known was price manipulation, or trading stocks like commodities. Continued heavy insider selling from those with the best forward view of the real economy is a clear sign of a top. No one can trust what the Fed or the Administration are saying about an economic recovery, as much now as ever. Obama's administration is no reform government ...We will not be surprised if there is a significant decline, first to a pullback of about 7 to 10 percent. Then we will see if the market can rally on renewed dollar devaluation and if not, then another major slide to test lower levels.

Approaching Decline; Equities; impressive; Jesse's Café Américain; signed.

The Economic Populist - Speak Your Mind 2 Cents at a Time Fri 2009-09-11 17:54 EDT

90% of Residential Loans U.S. taxpayer backed

Buried in a Washington Post article: 90 percent of all new home loans are funded or guaranteed by taxpayers...taxpayers are on the hook for most of the loans that are still being made if they go bad. And they are also on the line for any losses in the massive portfolios of old loans at Fannie Mae and Freddie Mac, which own or back more than $5 trillion in mortgages.

90; economic populist; Mind 2 Cents; Residential Loans U.S. taxpayer backed; speaking; Time.

Jesse's Café Américain Fri 2009-09-04 19:42 EDT

"Let's Just Whack the Oil"

Jesse

``The markets used to be about capital formation,'' said Mr. Quast, the consultant. ``Now 80 percent of trading is driven by some form of statistical arbitrage. We are buying into a statistical house of cards that could unravel very quickly.'' ...this manipulation is getting so blatant and widespread and regular that it is crippling daily market operation, not to mention robbing the general public of millions of dollars every day in their 401K's, pensions, and investment accounts. It has more of the appearance of organized crime than it does of a financial system.

Jesse's Café Américain; Let's Just Whack; Oil.

Calculated Risk Fri 2009-09-04 19:01 EDT

Junk Bond Default Rate Passes 10 Percent

CalculatedRisk

From Rolfe Winkler at Reuters: U.S. junk bond default rate rises to 10.2 pct -SP The U.S. junk bond default rate rose to 10.2 percent in August from 9.4 percent in July ... Standard & Poor's data showed on Thursday. The default rate is expected to rise to 13.9 percent by July 2010 and could reach as high as 18 percent if economic conditions are worse than expected, SP said in a statement. ... In another sign of corporate distress, the rating agency has downgraded $2.9 trillion of company debt year to date, up from $1.9 trillion in the same period last year. Bad loans everywhere ...

Calculated Risk; Junk Bond Default Rate Passes 10 Percent.

Jesse's Café Américain Thu 2009-08-20 16:16 EDT

China Makes Biggest Cut in US Treasury Assets Since 2000

Jesse

One has to wonder how long the UK, Japan and the US can keep supporting each other's crony capitalist oligopolies. China DailyChina cuts US Treasury holdings in June2009-08-18NEW YORK: China reduced its holdings of US Treasury debt in June by the biggest margin in nearly nine years, according to a US Treasury Department report issued on Monday.China cut its net holdings by 3.1 percent to $776.4

2000; China Makes Biggest Cut; Jesse's Café Américain; treasury assets.

Jesse's Café Américain Thu 2009-08-20 16:11 EDT

China Makes Biggest Cut in US Treasury Assets Since 2000

Jesse

One has to wonder how long the UK, Japan and the US can keep supporting each other's crony capitalist oligopolies. China DailyChina cuts US Treasury holdings in June2009-08-18NEW YORK: China reduced its holdings of US Treasury debt in June by the biggest margin in nearly nine years, according to a US Treasury Department report issued on Monday.China cut its net holdings by 3.1 percent to $776.4

2000; China Makes Biggest Cut; Jesse's Café Américain; treasury assets.

Jesse's Café Américain Thu 2009-08-20 16:11 EDT

China Makes Biggest Cut in US Treasury Assets Since 2000

Jesse

One has to wonder how long the UK, Japan and the US can keep supporting each other's crony capitalist oligopolies. China DailyChina cuts US Treasury holdings in June2009-08-18NEW YORK: China reduced its holdings of US Treasury debt in June by the biggest margin in nearly nine years, according to a US Treasury Department report issued on Monday.China cut its net holdings by 3.1 percent to $776.4

2000; China Makes Biggest Cut; Jesse's Café Américain; treasury assets.

Jesse's Café Américain Thu 2009-08-20 16:07 EDT

China Makes Biggest Cut in US Treasury Assets Since 2000

Jesse

One has to wonder how long the UK, Japan and the US can keep supporting each other's crony capitalist oligopolies. China DailyChina cuts US Treasury holdings in June2009-08-18NEW YORK: China reduced its holdings of US Treasury debt in June by the biggest margin in nearly nine years, according to a US Treasury Department report issued on Monday.China cut its net holdings by 3.1 percent to $776.4

2000; China Makes Biggest Cut; Jesse's Café Américain; treasury assets.

Tue 2009-02-24 00:00 EST

Calculated Risk: Investment as a Percent of GDP

investment slump

Calculated Risk; GDP; investment; percent.

Tue 2009-02-24 00:00 EST

Jesse's Café Américain: Inflation v. Deflation and the Yield Curve: Jesse's Lifetime Trading Plan

Jesse's Café Américain: Inflation versus Deflation and the Yield Curve: Jesse's Lifetime Trading Plan; ``we could see short term rates spike up to 15 to 20 percent with much of the longer yield curve at 12+%''

deflation; Inflation; Jesse's Café Américain; Jesse's Lifetime Trading Plan; yield curve.

Mon 2008-06-30 00:00 EDT

Angry Bear: Broken Clock Day

Thomas Friedman accidentally tells truth: "Since President Bush came to office, our national savings have gone from 6 percent of gross domestic product to 1 percent, and consumer debt has climbed from $8 trillion to $14 trillion."

Angry Bear; Broken Clock Day.