New Economic Perspectives Fri 2010-07-16 14:28 EDT

Goldman Vampire Squid Gets Bitch Slapped: JP Morgan Bitch Slaps the Dow; and Geithner Tries to Bitch Slap Elizabeth Warren

L. Randall Wray

Ok here were three pieces of news today. First, Goldman Sachs was fined $550 Million for duping customers...For Goldman it was a tiny slap on the wrist--it still controls the Obama administration, with its moles, Timmy Geithner and Larry Summers still in charge of fiscal policy, thus prepared to funnel whatever money is necessary to prop up their firm--and the fine amounts to just 14 days of Goldman's earnings...The other remaining investment bank, JP Morgan announced that its profits rose by 76%. Funny thing is that in all banking categories, JP Morgan's results were horrendous...the profits supposedly came from ``trading''. In reality they mostly came from reducing ``loan loss reserves''...Our favorite Timmy has weighed in on Elizabeth Warren...Timmy Geithner (let me repeat that: Timmy! Geithner!) the most incompetent and conflicted public official since ``heck-uv-a-job'' Brownie has dared to oppose Ms. Warren to lead the new Consumer Financial Protection Bureau...Actually I agree with Timmy. Elizabeth Warren ought to be gunning for Timmy's job. Fire Geithner. Now. Elizabeth Warren for Treasury Secretary! And in 2012, Warren for President...Time for a new face in the White House. Elizabeth is our man, or woman.

Bitch Slap Elizabeth Warren; bitch slaps; Dow; Geithner trying; Goldman Vampire squid; JP Morgan Bitch Slaps; New Economic Perspectives.

naked capitalism Thu 2009-10-08 16:47 EDT

Latvia in Crisis; Threatens to Stiff Swedish Banks With Mini-Jubilee

Latvia and to a lesser extent Estonia and Lithuania had a massive and unsustainable current account deficit...Foreign benefactors have just put the choke collar on Latvia. The government was unable to roll over its debt this week...Sweden on Tuesday put pressure on the tiny Baltic nation to fulfill required spending cuts, threatening to withhold payments [from a] euro rescue loan put together by Nordic countries...But Latvia does not appear to be ready to accede to Sweden's demands. The immediate cause for concern is that Latvia will simultaneously devalue its currency and provide a mechanism for its consumers to partially default on mortgages held by foreign banks.

Crisis; Latvia; Mini-Jubilee; naked capitalism; Stiff Swedish Banks; threatens.

Thu 2009-10-01 10:14 EDT

Mortgage Electronic Registration Systems (MERS): A System Designed to Create the Mortgage Back Security Bubble. >> Dr. Housing Bubble Blog

Mortgage Electronic Registration Systems (MERS)...claims to be a privately-held company and their function is keeping track of a confidential electronic registry of mortgages and the modifications to servicing rights and ownership of the loans. However, if you dig deeper into MERS and their shareholders you will find the same crony bankers...shareholders include AIG, Fannie Mae, Freddie Mac, WaMu, CitiMortgage, Countrywide, GMAC, Guaranty Bank, and Merrill Lynch...MERS allowed for the mortgage backed security business to explode since it allowed mortgages to be shipped off to Wall Street to be minced into tiny tranches and sold off by the big investment banks...MERS is a front for the mortgage and banking industry. It is claimed as a system of convenience but in reality, it is nothing more than the grease to lube up the housing bubble...what is significant about the Kansas Supreme Court finding has to do with the actual legal ownership of the note and deed especially when it comes to foreclosure...MERS is a straw man...provides ``an opaque veil that clouds not only the actual real ownership of the promissory note, but title to the property.''

created; Dr. Housing Bubble Blog; MER; mortgage; mortgage Electronic Registration System; security bubble; Systems designed.

Sun 2009-02-01 00:00 EST

naked capitalism: Goldman: Bank Rescue May Reach $4 Trillion (and "Bad Bank" Issues)

``watch as [banks] steal trillions from the yet-unborn. Future sonograms will show the shackles around their tiny ankles.''

4 trillion; bad banks; Bank rescued; Goldman; issue; naked capitalism; reaching.

Wed 2008-05-07 00:00 EDT

Winter (Economic & Market) Watch >> Fannie Dismayed

Winter (Economic & Market) Watch >> Fannie Dismayed; Fannie Mae lying about delinquincy, default; tiny capital base against vast dodgy assets

economic; Fannie Dismayed; Market; watch; winter.