EZ READING MONEY MATTERS: Derivatives Beast Devours All Major Investment Banks

September 16, 2008

Elaine Meinel Supkis

-The inevitable finally happened: a major investment bank has gone under. Destroyed by sea surges from Hurricane Greenspan. Lehman is dead and Merrill Lynch is part of the goofy bank called 'Bank of America'. The Derivatives Beast is now activated. With Bear Stearns, the Federal Reserve and the Treasury were able to prevent the credit default swaps from being activated. Now, they are unable to do this. $600+trillions of CDS deals are at stake now. They will be revealed as FRAUDS. The dollar is again, falling. And our trade partners are in hysterics. McCain's economic advisor claims that there is nothing wrong with anything. Except his brains.

A NATION OF EXAGGERATORS

Quit Doling Out That Bad-Economy Line

"It was the worst of times, and it was the worst of times."

I imagine that's what Charles Dickens would conclude about the current condition of the U.S. economy, based on the relentless drumbeat of pessimism in the media and on the campaign trail. In the past two months, this newspaper alone has written no fewer than nine times, in news stories, columns and op-eds, that key elements of the economy are the worst they've been "since the Great Depression." That diagnosis has been applied twice to the housing "slump" and once to the housing "crisis," to the "severe" decline in home prices, to the "spike" in mortgage foreclosures, to the "change" in the mortgage market and the "turmoil" in debt markets, and to the "crisis" or "meltdown" in financial markets.

It's a virus -- and it's spreading. Do a Google News search for "since the Great Depression," and you come up with more than 4,500 examples of the phrase's use in just the past month.
*snip*
Full disclosure: I'm an adviser to John McCain's campaign, though as far as I know, the senator has never taken one word of my advice. He's been sounding a little pessimistic on the economy of late, too. And to be fair, he isn't immune to the Depression-exaggeration virus, either.

Question #1 is, why does the senile old dog even have this utter idiot on his staff? If he doesn't listen to this bizarre, insane man, that is a good thing. But why hire him to infest McCain's staff with childish, utterly unbelievable economic advice? I must say that Luskin's personal bubble must be made of the most powerful materials. Even economic bunker buster bombs don't trouble him. His editorial of denial come on the most appropriate day!

This also reveals how clueless Washington, DC has been lately. Of course, the Senators are owned by the financiers. And their only response to 'Jump' is to say, 'How high?' The collapse of our entire banking system is very intimately related to how corrupt and venal Washington, DC politicos are. The fundamental basis for the global banking collapse is simple: the US government has refused to defend US economic borders. And has misspent money on running a global empire we can ill afford. Fixing this means cleaning out Washington, DC. There is no way we can paper over massive, persistent and continuous deficits in every level of our economic systems! Anyone suggesting the present status quo can continue is insane.

From a Canadian reader: The central bankers simply didn't do their jobs

We learned this week from former Bank of Canada governor David Dodge that central bankers here and abroad were aware of a looming credit crisis five years ago.

Why didn't they tell us then? If Wall St. and Bay St. turned a deaf ear to their warnings, as Dodge claims they did, surely these public officials -- given a mandate to maintain a stable financial system -- had a duty to make their concerns widely known.

Former U.S. Federal Reserve Board chairman Alan Greenspan privately warned for years that easy money in the real estate sector was "a disaster waiting to happen," Dodge explained, but the perception that making mortgages more accessible helped homeowners stymied any effort for reform.

I live with a mostly-deaf husband and have deaf readers. They all are astute and aware people who are, thanks to their disabilities, very careful readers. Since they gain data via reading, the active parts of their brains is in the area of logic and memory retention. People who can hear perfectly well are victims of 'in one ear and out the other'. The retention rate of information via hearing is a thousand times worse than reading. So the guys who are being deliberately stupid are NOT deaf at all. They are DUMB. Like, willfully stupid. Dumb, like teenagers who think they can do whatever because mom can't see them.

No one running the G7 banking and economic systems were set there to create stability. They were put in place to keep up the status quo which was, by its very nature, totally unstable. As I run through charts and graphs of the last 35 years, it is obvious that no one has tried to stop the fundamental instability within the system. All the fixes designed by these fools has made things worse, not better. The main 'fix' for what ailed the US in 1974 was to increase lending and thus, debts that accumulate into the far future. All nations have participated in this farce because they were rewarded by being allowed to run increasingly gigantic trade surpluses with the US.

This is the goal of all negotiations today. And it is utterly impossible. This is why the dire sisters who control wealth are now stepping in to destroy all this impossible credit that the G7 extended to itself so it could grow rapidly and make the world's richest people much richer. Stopping these goddesses is impossible. The fixes that halt the Goddess of Inflation simply activates her twin sister, the Goddess of Depression. The only entity that can stop both is Libra and she is glaring at her scales which are completely out of balance. 'Have fun devouring all wealth, ' she shouts to her fanged sisters.

Greenspan: Economy in 'once-in-a-century' crisis

(CNN) -- The U.S. credit squeeze has brought on a "once-in-a-century" financial crisis that is likely to claim more big firms before it eases, former Federal Reserve chief Alan Greenspan said Sunday.

Greenspan told ABC's "This Week" that the situation "is in the process of outstripping anything I've seen, and it still is not resolved and it still has a way to go."

"Indeed, it will continue to be a corrosive force until the price of homes in the United States stabilizes," Greenspan said. He predicted that would not happen until early 2009, and said the odds of U.S. recession have gone up in recent months.

Greenspan has been relegated to Court Fool in the Palace of the Three Dire Sisters of Wealth. He screwed everything up totally and now gets to make remarks about the mess that are amusing. Today's observations isn't as funny as his statement that the Federal Reserve is NOT a flying magical piggy bank. When it certainly looks like one and squeals like one. Again, this fool gets everything ass-backwards yet again. The credit squeeze is NOT the crisis. It was the credit EXCESS that is the real crisis. This is why, when more and more credit is made out of thin air via the flying magical piggy bank, all it does is gets dear Miz Goddess of Inflation excited. Right now, the sister in charge of Depression is at work, slicing and dicing wealth and then devouring it. But if enough new credit is granted at 1% rates, Inflation gets to fly and do her own thing. Let's now talk about the Son of the Three Dire Sisters: the Derivatives Beast:

The International Swaps and Derivatives Association:

SDA confirms a risk reduction trading session is taking place between 2 pm and 4 pm New York time today for OTC derivatives. Product classes involved are credit, equity, rates, FX and commodity derivatives. The purpose of this session is to reduce risk associated with a potential Lehman Brothers Holding Inc. bankruptcy filing. Trades are contingent on a bankruptcy filing at or before 11:59 pm New York time, Sunday, September 14, 2008. If there is no filing, the trades cease to exist. These trades are subject to a protocol which is being distributed by ISDA (International Swaps and Derivatives Association). Traders should execute the protocol and email a copy of the signature page to Mark New at ISDA (mnew@isda.org) with LEHMAN PROTOCOL in the subject line. Click here for Protocol Text. An explanatory statement regarding the Protocol can be found here.

MARKET PARTICIPANTS HAVE INDICATED THAT THEY ARE WILLING TO TRADE UNTIL AT LEAST 6:00 NEW YORK TIME. PARTIES SHOULD COMMUNICATE WITH EACH OTHER AS TO THEIR WILLINGNESS TO TRADE LATER THAN 6:00.

ISDA, which represents participants in the privately negotiated derivatives industry, is the largest global financial trade association, by number of member firms. ISDA was chartered in 1985, and today has over 840 member institutions from 56 countries on six continents. These members include most of the world's major institutions that deal in privately negotiated derivatives, as well as many of the businesses, governmental entities and other end users that rely on over-the-counter derivatives to manage efficiently the financial market risks inherent in their core economic activities.

Since its inception, ISDA has pioneered efforts to identify and reduce the sources of risk in the derivatives and risk management business. Among its most notable accomplishments are: developing the ISDA Master Agreement; publishing a wide range of related documentation materials and instruments covering a variety of transaction types; producing legal opinions on the enforceability of netting and collateral arrangements (available only to ISDA members); securing recognition of the risk-reducing effects of netting in determining capital requirements; promoting sound risk management practices, and advancing the understanding and treatment of derivatives and risk management from public policy and regulatory capital perspectives.

I look and look and still don't find everything. The Financial Times provided a link to this association of baby-sitters of the Derivative Beast. They sent out a notice this weekend that everyone had to gather together in the nursery of the Beast and the traders were supposed to get trading and thus, show the world that their Beast isn't a monster but is normal and useable. The concept of this creature's creation is simple: spreading risk so everyone could lend or make deals with impunity. Since everyone wanted to believe that this would work, they went out and acted as if it was working. But now that it is being activated by a disaster that is destroying world banking, it turns out that this monster, the Derivatives Beast, isn't a savior, it is a DESTROYER.

Well, DUH! When I first tried to figure out derivatives, I got a headache. This is a good warning sign that something is wrong. I get headaches when lightning approaches, for example. So I knew from day one, the Derivatives Beast was a dangerous monster. It was only about $100 trillion in size when I finally decided it was really the Great Destroyer. It was birthed when banking gnomes, lost in the dark while raiding the Cave of Death and Wealth, ran into the Three Sisters. Libra is a virgin and won't let anyone touch her robes. But her sisters are whores and love sex and can't wait for someone to bang them.

When the banking gnomes saw that they woke up Inflation and Depression, they asked for some sort of insurance that this wouldn't mean THEY lose their wealth. So the sisters handed the gnomes this tiny baby monster. With instructions about suckling it. The banking gnomes fell in love with their son and fed him with great joy and eagerness. Now, they are begging him to save them but he is a demon. He takes intense delight in stomping on them.

So, this call for all traders to come running to save the banking system produced what?

Dealers hold emergency trading session

Wall Street dealers held an unprecedented emergency trading session on Sunday afternoon in a frantic effort to prepare for the possible bankruptcy of Lehman Brothers and limit the knock-on losses of its collapse on other financial institutions.

After meetings with New York’s Federal Reserve ended in the early hours of Sunday, the Fed later called dealers at lunchtime and urged them to hold the special session. The plan was to allow dealers to take on new positions offsetting the risks from derivatives trades they have with Lehman, in order to reduce the rush to unwind billions of dollars of contracts on Monday should the investment bank file for bankruptcy.

However, according to several people involved, there was only limited trading, in part reflecting the difficulty of getting traders into Manhattan with less than an hour’s notice on a Sunday afternoon. “It was a bust,” said one executive.

The $600 TRILLION Derivatives Beast is a monster, isn't he? Lehman's total debts are $613 billion which is more than half a trillion in size. This represents a hunk of about $12 trillion in derivatives swap trades? I DON'T KNOW. But I am betting, this is close to the truth. Probably, it is much more than that! Insurer, American International Group reportedly asked the Federal Reserve for $40 billion this weekend. They need this so they can pretend to be insurers and not doggie bones for the Derivatives Beast which probably has three heads and should be called 'Cerberus.' Well, well, well...the banking gnomes can see this creature even if he is invisible to most humans. He is their son! They knew that if they showed up to do deals, they would DIE. So they ran away.

Like naughty children, they think that if they just run away, they will not be caught and eaten. But the Beast is stalking them. It will catch and eat them. Either they face up to this gigantic mess they created or they will be devoured totally. None will survive. The Beast is now far too great in size. To reduce it in size to $0 means totally decimating the entire banking system of the world and starting over again. In the Great Depression, each nation grappled with this problem. The US was the only one that had some real success. The laws that were passed that fixed the mess were messed up or eliminated when the US got in financial trouble due to the Cold War and the very hot Vietnam War.

Learning absolutely nothing from that attempt at global rule, the US continues onwards, trying to do the impossible. So the Beast will eat the entire financial systems of the US. This is why global banking woes are focused on the US and not Asia or Europe. True, those places are now in trouble. But the locus is in the US, not overseas. And the US must balance its internal books if it wishes to see an end to all this wealth destruction. Supporters of McCain don't want this. Indeed, financiers are demanding Obama also be reckless and stupid and continue the status quo that is collapsing.

Is this the death knell for derivatives?
On page 62 of last year's accounts, under the heading "off balance sheet arrangements" Lehman had derivative contracts with a face value of $738bn

If this is the death of Wall Street as we know it, the tombstone will read: killed by complexity.

Derivatives in their baffling modern forms – collateralised debt obligations, credit default swaps and so on – lie at the heart of the failure of Lehman, Bear Stearns, Fannie and Freddie, and even our own Northern Rock.

The philosophy that underpins the growth of derivatives is the idea that risk can be transferred to institutions more able to take the strain. In theory, it's a terrific scheme – the weak can get rid of risks they can't handle, and the financial system should be stronger as a result.

And the 'weak' were... the world's biggest investment banking houses! They, not just the small hedge fund hell hounds or those pesky raptors attacking Bernanke, were the ones in need of protection. Since both big and little wanted the same protection, no one got any protection at all since everyone acted as if someone else would save them from their own follies. A very foolish way to live, I would suggest. Looking at photos of the housing to the east of Galveston...totally wiped off the face of the earth during the hurricane...one can imagine this is the same with the banks. They didn't worry about huge storms because they thought they were insured.

Wall Street Prepares for Potential Lehman Bankruptcy

The market value for all over-the-counter derivatives swelled 50 percent last year to $14.52 trillion, with interest- rate contracts accounting for almost half of the total, according to the Bank for International Settlements.

This little news snippet from today's Bloomberg news shows us that the Derivatives Beast continued to double in size despite the banking collapse starting in July, 2007. Far from backing off, everyone rushed into the jaws of this fanged son of the banking gnomes.

The credit derivatives market, as with other over-the-counter derivatives such as swaps, is traded privately between banks and investors. Without an exchange or clearing house backing the market, the risks are taken on by the biggest dealers.

Even though banks may be able to hedge their exposure to Lehman, other participants in the derivatives markets such as hedge funds or insurance companies may be left holding credit default swaps (CDS) with Lehman as a counterparty which are supposed to give protection against other companies defaulting.

This sort of circular insurance is looking more and more like a circular firing squad. No system can be insured by its own potential victims of any storm. Insurers have to have the ability to pay up damages and this means, they must be from outside of any system or location. And insurer who insures against earthquakes can't be in an earthquake zone. Or hurricane insurers can't have headquarters on the beach. Lehman and the others were totally unable to be 'counterparties' to any insurance scam. Everyone had to be insured against THEIR failures! Not the opposite.

The delusional thinking here was, the big ones were going to be rescued so they could be the counterparties. This is still operational---the true counterparty here is now and always was the Federal Reserve and the Treasury. I have pointed out over the years that this is insanity: the Federal Reserve has nearly no reserves and most of its reserves are actually Treasuries and the ability to make money for free at whatever interest rate they want. The Treasury is bankrupt since tax revenues don't even come near to paying for expenditures. Half a trillion in the red this year alone! So two red-ink sources do NOT constitute a system of counterparties that can afford losses. They ARE losses! They are the biggest losers on earth, not the biggest creditors. This is the fundamental problem.

Bank of America to Buy Merrill Lynch for $44 Billion

Both boards have approved the deal and it is now being reviewed by lawyers, the sources said. Bank of America will pay about $29 for each share of Merrill Lynch stock. A formal announcement is expected tomorrow morning.

Bank of America is in a position to buy Merrill Lynch because until now the Charlotte company has been a bit player on Wall Street. Instead it runs the nation's largest retail bank, a business that remains highly profitable. That now gives it the money to go shopping for an investment bank, continuing a long tradition of opportunistic acquisitions.
*snip*
Merrill Lynch's crown jewel is the nation's largest retail brokerage. Bank of America views that business as a good addition to its own consumer financial businesses. The company already was the nation's largest retail bank, credit card company and mortgage lender. Now it will become the nation's largest retail brokerage too. Arguably no other American company sits closer to the heart of the consumer economy.

Fed Widens Collateral, Banks Set Up $70 Billion Fund

(Bloomberg) -- The Federal Reserve widened the collateral it accepts for loans to securities firms to include stocks in an effort to help Wall Street weather Lehman Brothers Holdings Inc.'s plans for bankruptcy.

The Fed also yesterday boosted its program for lending Treasuries to bond dealers by $25 billion, bringing it to $200 billion. At the same time, a group of 10 banks that includes JPMorgan Chase & Co., Goldman Sachs Group Inc. and Citigroup Inc. formed a $70 billion fund to ensure market liquidity.
*snip*
The European Central Bank and the Bank of England did their bit to soothe markets today by pumping emergency funds into them. The U.K. central bank loaned an additional 5 billion pounds ($9 billion) for three days in an exceptional operation, which attracted bids for 24.1 billion pounds. The ECB said it injected 30 billion euros ($43 billion) for one day after 51 bids totaling 90.27 billion euros. The central banks of Switzerland and Australia also provided extra funds.

How many trillions has the G7 bankers pumped into this surging sea of red ink? The price of oil is dropping so everyone rejoices. This is because the number of customers are dropping. Alitalia, the Italian airlines, has run out of credit and fuel and is probably no longer flying today. It is estimated that 100 airlines will cease to exist this next year. So oil will be cheaper due to DEPRESSION. This is what happens when there is no balance. We get one or the other of the dire Sisters.

Note also how the news correctly says these 'rescues' are unprecedented. This is a failed attempt at preventing a Great Depression which is doomed to failure since it is based on the same premises of the Great Depression: that the bankrupt empires can still pay interest on loans from wars. Note how the remaining fathers of the Derivative Beast are banding together to creat a $70 billion fund? HAHAHA. To insure 'liquidity' which is 'more debts'! This is stupid. With three demonic creatures eating wealth, how will making more debts stop them? This feeds them! As I said before, the world needs to constrict because it grew far too fast and far too recklessly. We can't continue this status quo.

Fed announces broadened collateral at the PDCF and TSLF

The collateral has been broadened at the Primary Dealer Credit Facility (PDCF) and also at the Term Securities Lending Facility (TSLF).

At the PDCF, collateral has been broadened to "match the types of collateral that can be pledged in the tri-party repo systems of the two major clearing banks," said the release.

The TSLF now includes investment-grade debt securities for Schedule 2 auctions. "Previously, only Treasury securities, agency securities, and AAA-rated mortage-backed and asset-backed securities could be pledged."

Just one year later and all the promises of holding ONLY good stuff from GOOD investment banks has fallen! Now, they will accept anything from anyone! This is NINJA lending writ large. All that dead Aaa and BBB junk that lost over 95% in their value this last year will now be dumped into the Federal Reserve. Since the Reserve is a hole in the wall of the Cave of Death and Wealth, this means the denizens inside this cave will eat these things. The hopes of the banking gnomes is, the creatures inside will be satiated with this garbage.

Ah, no. This simply fuels their fury as they go hunting for the gnomes. Here is the Federal Reserves' press kit announcing this new style of banking:

FACILITIES FOR DEPOSITORY INSTITUTIONS

The primary credit facility of the DW and the TAF are available to depository institutions (DIs)K in sound financial condition. Borrowing at each of these facilities can be secured by a wide variety of collateral, including loans to businesses and households.

The Primary Credit Program of the Discount Window

From January 2003 to August 2007, eligible depository institutions could borrow from the DW on an overnight basis at a penalty rate set at a fixed 100 basis point spread over the target federal funds rate. Starting in August 2007, in view of the significant strains in term interbank funding markets, the Federal Reserve made a number of changes to terms of DW borrowing. On August 17, 2007, the Fed extended the maximum term for borrowing to 30 days, renewable at the request of the borrower, and reduced the spread to the target federal funds rate from 100 to 50 basis points. On March 16, 2008, the Fed further extended the term for borrowing to 90 days, and further reduced the spread to the target federal funds rate to 25 basis points.

Notice how the Fed reduced the 'spread' to Japanese levels. Now, there is talk about dropping interest rates to 1% just like Greenspan, the übergnome of the banking world, did in the past. This is being done to avoid a recession. Completely destroying the banking system so we can boost consumerism is insanity, of course. Not that this thought stops anyone.

Click here to access the ALFRED system run by the Bank of St. Louis.

This graph clearly shows that our system is dead as a doornail. At NO TIME in the past had these borrowings exceeded $5 billion. Usually, it was around a billion. Now, it is shooting past $200 billion and still climbing. This is utter insanity and this graph should not be only at websites like the Richard of Bellingham, Economic Ninja or Calculated Risk or my own site. It should be blasted on the front pages of all the mainstream media...HAHAHA. In a rat's ass. We knew for a year that this graph is dire. When it shot past $60 billion, a bunch of us online commentators sat up and said, 'What the hell?'

Alt-A Mortgages Next Risk for Housing Market as Defaults Surge

(Bloomberg) -- For Dean Nessen, the choice of a mortgage was easy. By agreeing to pay only interest for three years, the self-employed salesman didn't have to show proof of income and landed a rate of 6.25 percent.

Now, four years later, Nessen's industrial coatings business has gone belly up and his rate has jumped to 10.6 percent. He can't afford the payments and may have to move his family out of their home in Commerce Township, Michigan.

Homeowners lured by low introductory rates to Alt-A mortgages, which typically require little or no proof of a borrower's income, may fuel the next wave of foreclosures and further delay a recovery from the worst housing decline since the 1930s. Almost 16 percent of securitized Alt-A loans issued since January 2006 are at least 60 days late, data compiled by Bloomberg show. Defaults will accelerate next year and continue through 2011 as these loans hit their three- and five-year reset periods, according to RealtyTrac Inc., an Irvine, California-based foreclosure data provider.

The fun never stops. Each year of this epic collapse, everyone hopes the end is nigh. It is night, not nigh. Or the Knights that say 'Niii'. Frankly, the housing collapse by definition has to last 5 years, minimum. History is totally secure in this matter. No housing collapse is less than 5 years. This bubble is going to take a lot more than 5 years to unwind. It is childish to insist the process will be short and painless. Adults accept the concept of pain and suffering. Or maybe not.

And as usual, here are my stories from exactly one year ago. It shows clearly that there is nothing mysterious at work here. We knew what was going on, one year ago. It was already painfully obvious.

Banking System In England Teeters On Brink Of Collapse

The same lending/banking/debt crisis that is causing the mighty US empire to sink into bankruptcy is also sinking the remnants of the once-mighty United Kingdom. Both entities made the identical mistakes and both refused to see obvious signs of destruction due entirely to imperial hubris. 'Who would want to have us go bankrupt? We are the world's consumers!' they both yelled as the Chinese sharpened their knives and prepared the geese for the inevitable decapitation. The British refuse to remember what they did to China during the Opium War. I assure everyone, the Chinese have not forgotten that war. So today, we see the first English bank, Northern Rock, implode. A run on the bank, its stocks collapsing.

Greenspan Admits He Is Clueless And Stupid

Understanding the dynamics of today's FOREX markets is nearly impossible unless one can peer into the souls and the schemes of various parties who are playing games of varying levels of sophistication. The rules of this game as set down by economists and bankers, have been OVERTURNED and we now see a game whereby one half of the planet is playing one game and the other, a totally different and very dangerous and destabilizing game. At the heart of all this lies two very sick, very dangerous nations: the US which is the world's #1 economy and Japan, the world's #2 economy. Japan is in the midst of creating an epic depression longer than any in the history of the Industrial Revolution while the US is on a spending spree of equal size and duration. Time to talk about the currency flight/credit crunch once more.

Bankrupt Mortgage Companies Bouncing Property Tax Checks

More and more homeowners are in trouble because bankrupt mortgage dealers and holders are going bankrupt and not paying property taxes or are using bad checks to pay this! And the poor homeowners have to fix this or lose their homes only they have no control over who is doing this! And they still have to pay the people bouncing checks. The world banking crisis gets worse as the US system collapses. Time to revisit the vile fraud, Greenspan. And talk about international banking rules yet again.

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Comments

my own 'probably faulty' take on derivatives is that they are useless as insurance and hence have no face value. The question is about notional value and it remains to be seen what that impact will be . I think notional value is a rough measure of the amount of credit excess.

Posted by: ziff house | September 15, 2008 at 12:26 PM

Seems to me also there is still some confusion here. A derivatives meltdown would be deflationary, yet the concerns here have been about INflation.

Posted by: ziff house | September 15, 2008 at 01:16 PM

Well, somebodies magic wand was keeping the dollar high today

Posted by: ziff house | September 15, 2008 at 09:50 PM

But her sisters are whores and love sex and can't wait for someone to bang them.

Would this be another instance of "love is free, but sex is very expensive"?

Posted by: Neon Vincent | September 16, 2008 at 05:35 AM

I Love Your work and use it as you have seen.
Your way of Using Satire and Sarcasm works well.

Now if the Masses would wake up from their apathetic spell.
It seems that we wont reach many of these ROBOTS without and APP on the I-Phone ,I-Pad in this I-World.

Do We need and APP for Empathy,Vigilance,and Common Sense?

Keep up the Brilliant Work.
WE need to give these Arbtrage Whores and CDO Clowns HELL.
AS the Mess UNWINDS and the Cash Hoarders try to pay their BAD CDOs off the Credit market is FROZEN even as they claim different.

The SBA Loans need to FLOWING.
America was built on Small Business.

There are Many Boomers who will start small businesses to stay afloat.

The Averagae Citizen whose 401K was RAPED by the System is plenty mad.
I just PRAY the Struggle,Protest,and Subsequent Poloicy Changes Remains at Peaceful Protest Level.
I know what it Feels to be Hit by Sub Prime Scandal IT SUCKS!!
Just check the Price of the House at 531 Wallace in Vallejo.
It just Sold for 108,000 dollars in 2010.
When the Appraiser said over 400,000 in 2002 I knew something was up.
The SubScum bastards worked Vallejo good.
They adjusted and it was a PLAN.
HFCs SubPrime bandits will BURN IN HELL.
Of Course The Social Discourse is Off Course.
Too Many Citizens Upset.
Isn't The Pursuit of Happiness non Negotiable?
Imagine what could be accomplished if the Teabagger movement picked real leaders instead of Quitters like Sarah Palin and Haters like Glenn Beck.
Time for the Fighting to stop.
Time to do what MLK wanted,To Judge by Character not PARTY.
Learn to Agree to Disagree.
Time for "The Golden Rule",Imagine That a Utopian World!(wake up Timmy)
The "Secretive Elite" Love the Discourse it is Profitable for them.