| MACRO
ANALYSIS REPORT * Miscellaneous Morsels |  HAT TRICK LETTER Issue #81 “the Golden Jackass” 12 December 2010 |
| "Fundamentally it would appear
as if this fraud riddled carcass is getting
ready to be snuffed. Geithner and Bernanke
and Henry Paulson stuffed Countrywide and
Merrill Lynch, two hugely fraudulent Wall
Street creations, into Bank of "This [breakdown collapse] cannot be stopped because the central banks, big banks, and economists have screwed things up that bad. I mean the place is a wreck, and nobody wants to fix anything. Everybody wants just to make it go one step further. They have kicked the can, and kicked the can, and the can has gone nuclear." ~ Jim Sinclair "American commercial and residential real estate is wrecked for two decades. Property ownership, banks, credit unions, title companies, loans, lender loan ownership, and ability to pay are all simply destroyed." ~ Roger Weigand "This was the prime error made during The Depression. Contrary to Bernanke's claims of being a student of The Depression, he is really the Fool-in-Chief for that era. FDR's devaluation of the currency trashed the tax base and guaranteed sky high unemployment for the same reason it is happening now. Devaluation of the currency destroys the finances of the middle class and below from greater spending on essential commodities (food, fuel, clothing)." ~ Karl Denninger "Deficits do not matter." ~ Dick Cheney (ex-VP under Bush, suffering terminal cancer) MISCELLANEOUS MORSELS ◄See the Special Report entitled
"The Plan For State Wreckage "
for the December Hat Trick Letter. The Wreckage of state employee unions might be the USGovt objective. The consistent neglect shown by the USCongress to the states is shocking. The devotion to major USBanks is obvious. But a second agenda is emerging, to break state unions and force the cancelation of pension obligations. The general motive is to weaken state power as well, some embroiled in Tenth Amendment battles over over-reaching federal power. What the nation might see next is a grand movement to weaken the state unions generally. Abandonment of the states appears to be a federal agenda item for 2011. The end of the Build America Bonds, a great aid device to state bond issuers, acting as indirect subsidies, finds no support for continuation. A massive skein of state bond defaults is coming, which will force the USFed's hand in bailouts or debt monetization. The USCongress appears to be quietly but methodically executing a plan that would curtail all federal bailouts of states, and to cripple public employee unions by pushing certain states into bankruptcy. A gigantic battle will ensue. ◄$$$ THE WIKILEAKS SCANDAL COMES
FROM INSIDE THE USMILITARY WITH PASSWORD
CLEARANCE AND THE USBANKS FROM ABSCONDED
DISK DRIVES. THE BANK SOURCE EXTENDS FROM
A FAILED ICELAND BANK AND PROSECUTION WITH
THE KAUPTHING BANKER, WHO HAS TURNED STATE
EVIDENCE. A PLOT TO RESTORE THE USGOVT FROM
INSIDE SOURCES IS UNDERWAY. A "The Anglo American fraud and genocide
cartel will be exposed. WikiLeaks was just
a teaser. The Boyz took the bait, exposed
their reaction profile, and aligned the
forces, leaving it vulnerable. This is
not directed against the American people
but against the syndicate which was allowed
to highjack the The WikiLeaks site is being fed
the information obtained from deep inside
the system. There are people
inside who very well understand that the
system can only be brought down from the
inside out. Witness how they hit Hillary
Clinton by exposing her spy instructions
to the ◄$$$ THE USFED AUTHORIZED APPARENT
GIFT GRANTS TOTALING OVER $12 TRILLION TO
BUY UP AMBUSHED ASSETS FOLLOWING THE LEHMAN
BROTHERS COLLAPSE. THE EXPANDED SUPER-T.A.R.P.
FUND HAD AN ASSOCIATED CREDIT LINE 17
TIMES LARGER THAN THE VISIBLE T.A.R.P.
FUND ITSELF. THE LIST OF GRANT RECIPIENTS
IS AS LONG AS YOUR ARM. THE EXPOSURE IS
BEING CALLED THE My view from the start about the TARP Fund
in October 2009 was steeped in suspicion.
Word came to my desk that grand payoffs
to foreign entities, even paid extortion,
going so far as payments to avert murders
of Wall Street bankers for bond fraud against
well-heeled investors. Such information
has not come been forthcoming in the open.
Instead, something much greater took place.
The USFed saw fit to extend $12.3 trillion
in loans at 0% with no collateral provided,
and probably no expectation ever to be paid
back. Therefore, think grants, not loans.
The one-time glimpse into the USFed, aided
by the new Financial Regulatory Bill has
resulted in a quiet firestorm, indicative
of the The elite bankers of the world had a
$12.3 trillion credit line to go shopping.
Details of their shopping spree at bargain
prices will probably never be known. The
list of borrowers (more like grant recipients)
included central banks from All their Ponzi team players were gifted
in a grand way. All the Racketeer Influenced
& Corrupt Organizations got their cut.
The author concluded with this bold statement.
"Ben Shalom Bernanke is wanted
for violating the United States Constitution,
committing acts of financial terrorism and
crimes against humanity. As a leading
member of the Global Banking Cartel, he
is considered a highly dangerous enemy
combatant. Citizens of the ◄$$$ HALF OF AMERICANS WANT THE USFED ELIMINATED. GOOD FOCUS, BUT IT IS WAY TOO LATE, SINCE WRECKAGE IS TOTAL. $$$ The timing of the Bloomberg survey is suspicious. Clearly, something big is going on. Why would such a survey be conducted at all? Perhaps the division among news organizations runs deep. FoxNews have an occasional shocking expose, like with engineers in opposition to the official 911 Commission. Perhaps the public is being prepared for an important shift in the power structure. Perhaps the USFed is going to become a focal point of national anger. A long shot, perhaps the USFed is planning to resign soon, which would force a USTreasury Bond default. Recall that the USFed balance sheet is broken completely. Regardless of the motive for promoting such a highly charged survey, the people favor a US Federal Reserve with less power and less independence. Good Luck!! Too late!! They already wrecked the entire building. The results of the survey were "More Accountability" = 39%, "Less Independent" = 37%, and "Abolish It" = 16%. See the Bloomberg article (CLICK HERE). ◄$$$ THE USDEPT JUSTICE HAS CRACKED DOWN ON SCORES OF PENNY ANTE PONZI SCHEMES. THEY ARE SMALL BUT ADD UP IN VOLUME. ONE MUST WONDER IF SOME OPERATE IN OPPOSITION TO THE WALL STREET BANKERS AS AN AGENDA IS BEING WORKED. MAYBE NOT, MAYBE JUST THE APPEARANCE OF PROSECUTION IS THE AGENDA. WALL STREET FIRMS REMAIN SCOT-FREE, WITH LICENSE TO COMMIT $TRILLION FRAUD AND EVEN RECEIVE BAILOUTS. $$$ The USDept Justice has conducted numerous
crackdowns on investment frauds including
Ponzi schemes and stock market manipulations.
The initiative might be somehow associated
with the SAC expert networks. The arrests
and actual insider sting operations will
be one of the biggest in history. The federal
prosecutions began in August, and have targeted
over 300 criminal defendants and 180 civil
defendants. They are nickel and dime Ponzi
schemes, and focus often on ◄$$$ A DIRECT BYPRODUCT OF THE PROMINENT FINANCIAL SECTOR, COMBINED WITH THE FASCIST BUSINESS MODEL, AGGRAVATED BY A SEQUENCE OF ASSET BUBBLES WITH FULL BUSTS, IS THAT THE ELITE INCOME GAP HAS WIDENED GREATLY. NOTICE THE FLAT MIDDLE CLASS AND RISING ELITE INCOME. $$$ The Fascist Business Model has led to a profound eruption of corruption, marked by a staggering shift in wealth to the elite in control. The prelude was two decades of asset bubble expansions, each well orchestrated by the Wall Street bankers. The result was been an utter disaster for the middle class. Whether tax cuts for the wealthy or organized bond fraud for the Wall Street preferred clients, the outcome is proof positive of the failure in policy and pathogenesis in the USEconomy.
◄$$$ FOOD STAMP USAGE AND RELIANCE CONTINUES TO RISE, AS POVERTY SPREADS LIKE A DISEASE. ONE IN 7 AMERICANS PARTICIPATES IN THE S.N.A.P. PROGRAM TO PROVIDE FOOD SUSTENANCE. $$$ Food Stamp rolls continue to rise. In all,
42.9 million people collected Food Stamps
in the month of September, up 1.2% from
the prior month. The count has risen alarmingly
in the last twelve months, as per USDept
Agriculture. Nationwide, 14% of the population
rely on Food Stamps. In just a couple
months, the ratio has gone from 1 in 8 Americans
to almost 1 in 7. The worst affected zones
in the nation are
◄$$$ THE USBOND BUBBLE HAD A TURNING POINT IN LATE NOVEMBER. BOND FUNDS RECORDED AN OUTFLOW. THE HALF-YEAR STRING OF STOCK FUND OUTFLOWS HAS JUMPED THE TRACKS TO BECOME A BOND FUND OUTFLOW. THIS IS A NEW NASTY TURN IN PUBLIC ABANDONMENT, AND A DEADLY SIGNAL OF A RECOGNIZED BOND BUBBLE. $$$ Since December 2008, just after the climax
death chapter of the ◄$$$ THE USTREASURY YIELD ON THE 10-YEAR NOTE HAS MOVED ABOVE 3%, AGAINST MY FORECAST. REGARD THE NEW TREND TO BE A GLOBAL REJECTION OF BOTH THE USGOVT FISCAL CONDITION AND USFED ACTIONS. THE USFED HAS FAST LOST ALL CREDIBILITY. THE ECONOMIC IMPACT WILL BE FELT NEXT YEAR, WITH DAMAGE TO HOUSING MARKET AND USECONOMY. $$$ The Jackass made another forecast error
on the 10-year USTreasury yield, the asset
class where almost all errors have occurred.
My expectation was for the yield (also called
TNX) to descend toward 2.0% to mark the
climax top of the USTreasury Bond bubble.
This makes perhaps the third forecast error
in Jackass history related to the USTreasurys.
It would be best never to forecast bond
yields ever again. The announced Quantitative
Easing #2 marked the bottom in bond yields,
and the top in bond principal value.
The reversal pattern indicates a 3.75% target,
no forecast, just a chart target. The world
has turned wise to the USFed, its skein
of failures, its lunatic views, its consistently
wrong perceptions, and the broken nature
of the USGovt debt. The world might also
be wise to the broken insolvent The foreign creditors have lost respect
for the USFed, and for Chairman Bernanke.
Insults cast at the G-20 Meeting in
Another very large hidden factor is at
work in my view, almost a generational factor.
From 1990 onward, big banks including the
central Bank of Meanwhile back at the office, the November USTreasury deficit rang in at $150.4 billion. The USDept Treasury reported the figure on December 3rd. One year ago, the November deficit was $120.29 billion. Not only is a recovery not happening, but the fiscal condition is growing dangerously worse. Leaders are proved liars on both ends. The deficit last month was $8 billion above what the clowns in the USCongress estimated. Income in November was $15 billion higher than receipts in November 2009, but spending ruined the month. Never lose sight of the endless war, its sacred budget, and the staggering toll to American prestige, as the syndicate agenda is untouchable. POLICE STATE & MEGA-CRIMES ◄$$$ FASCISM VERSUS COMMUNISM, AN EVOLUTION. THE UNITED STATES IS WELL ALONG ON A PATH TO A GRAND MERGER OF BOTH. THE SYMBOL OF THE MERGER IS THE MOVEMENT OF THE TWO MAJOR POLITICAL PARTIES TOWARD 6 O'CLOCK ON THE DIAL FROM THE RIGHT AND FROM THE LEFT. WITNESS THE FASCIST DICTATORSHIP IN HIDDEN FORM, LED BY THE MILITARY, BUT MORE ACCURATELY BY THE SECURITY ESTABLISHMENT. THE PENDULUM SWINGS IN CONTROL OF THE USCONGRESS TESTIFY TO THE MERGER PROCESS. LEADERS ARE LED BY BANKERS TOWARD THEIR DESIRED GOAL. $$$ The USGovt political makeup has been swinging
like a pendulum from conservative to liberal,
then from ultra-conservative to ultra-liberal
over the last two decades. In my view the
label of Democrat and Republican has obscured
the dominant emergence of the Narcos, who
act like a syndicate but control like a
party since Reagan was shot in office in
October 1981. The blue-coated Narcos led
by
The USGovt might switch party control of the USCongress, but the Narcos with their whore Bankster handlers have total control. When the Obama Admin took control in January 2009, the Jackass predicted a Goldman Sachs captain would be selected as Treasury Secy. It happened, except that Geithner is more like a lieutenant. With the same transition, the Jackass predicted the CIA would continue to occupy the Defense Secy position, with Gates not to be replaced. It happened exactly as expected, confirming the Narcos would not cede power in transition. The recent evidence of that control was the Financial Regulatory Bill, originated to curb banker control, but whose final legislation enhanced their power, since written by the banker lobby. When the party control of committees changes again in January 2011 as a result of the Midterm Election sweep, the red-coated Narcos will in hidden fashion resume control, relinquished from the blue-coated Narcos. The pendulum is swinging with smaller moves left and right, converging on the extreme 6 o'clock position of a fascist dictatorship. To 80% or 90% of Americans, the reality is obscured. The bankers on Wall Street orchestrate the political transition. Bond fraud, money laundering, and weapons sales are their province. This type of government is common for failed states. The natural conclusion of a capitalist system is a fascist state. Given the predatory destruction of the middle class by the corporate elite and the bankers, and their predilection for total control, the natural conclusion is also a dictatorship. Given the national bankruptcy, with insolvent sectors galore, a communist system is not only highly likely, but well on course. The mammoth USGovt deficits dictate the movements toward confiscation. The tragedy unfolds. COMMUNIST MANIFESTO
FASCISM CHARACTERISTICS
◄$$$ FORMER MINNESOTA GOVERNOR JESSE VENTURA PUT THE SPOTLIGHT ON CONSPIRACY THEORIES AND THE MARCH TOWARD A FASCIST DICTATORSHIP. HE IS CREDIBLE, BUT RECENTLY SILENCED TO SOME EXTENT. $$$ His credibility is founded upon experience
as a former USNavy Seal, with strong contacts
in the USGovt intelligence community. Former
Minnesota Governor Jesse Ventura should
be taken seriously. He has written a book,
established a private cableTV channel, and
served as speaker on broadcasted television,
even speaker circuits. He openly accuses
the ◄$$$ THE AE911TRUTH MOVEMENT IS GATHERING MOMENTUM AND POPULAR SUPPORT. ITS STORY HAS BEEN GIVEN EXPOSURE BY SOME BRAVE NEWS NETWORKS. THE OFFICIAL 911 STORY DOES NOT REMOTELY PASS THE SMELL TEST. PROFESSIONAL ORGANIZATIONS HAVE SHREDDED THE OFFICIAL COVERUP FABLE STORY, A GRAND CHARADE. ARCHITECTS, ENGINEERS, CHEMISTS, AND PHYSICISTS HAVE FORMED OBJECTIVE EVIDENCE TO DISPUTE THE ABSURD OFFICIAL STORY, AS THEY CONTINUE TO CONFRONT THE USGOVT SYNDICATE FORTRESS. PURSUIT OF TRUTH HAS BEEN GIVEN A TARISHED AND UNPATRIOTIC IMAGE. $$$ Leave aside for now the demolition of the
Give some credit to Geraldo Rivera of Fox
News for his courage to report an obvious
demolition. Before long, continuation of
the investigative threads will arrive at
evidence that Building #7 contained Enron
fraud records and USTreasury Bond fraud
records, both owned by JPMorgan Chase, a
primary center for the financial crime syndicate.
See the Geraldo Rivera and Building What,
the story of Bldg #7 at the ◄$$$ CONSIDER THE TROPOS THEFT OF
A CHINESE FORTUNE COOKIE FROM Behind the curtain in the marbled world
of high finance, fraud, deceit and government
sanctioned criminal theft is common. Consider
a recent $700 billion stolen in a single
stroke, from a passive swipe. The license
to steal comes by virtue of the fact that
the funds in question are US$-based. Therefore,
they must pass through the USFed system.
At that juncture, at that filtered pit stop,
it is stolen. Imagine a monopoly on a highway
where at the tollgate the cars are robbed
clean during examination of the currency
in wallets and purses, but only the biggest
cars since they hold the most money by the
passengers. The Tropos Capital Corp of A letter was sent on November 22, 2010
from Robert Hryniak of Tropos to Diego Devos
and Liam Flynn, general counsel at the BIS
in In its conclusion, Hryniak wrote "Your
failure to act, to inform and to invoke
the relevant policing authority is an appalling
abdication of your institution's Reason
for Being. Why have you not contacted Interpol
or the Swiss authorities about this apparent
international financial crime, which includes
mail and wire fraud? It would seem that
the assurance of the fidelity and credibility
of the international financial system would
be the primary interest of the BIS, but
this is apparently not true. Your letter
and stark admission of impotence have elevated
international level of financial risk for
all parties immensely and exacerbated the
existing crises in global banking stability."
This is work of the Harvey Organ provided a summary of the
Tropos controversial situation, which is
highly charged but surprisingly has not
generating much publicity. He wrote, "Tropos,
an American company. The elders who reside
in BANKS SURROUNDED BY BARBARIANS ◄$$$ USFED ANNOUNCED A STRING OF QUANTITATIVE EASING STAGES. THE CHIEF OF INFLATION ENGINEERING HERALDED AN EVENTUAL QE3 LAUNCH AMIDST A SEQUENCE OF GRAND LIES INTENDED TO GARNER PUBLIC SUPPORT. HIS DESPERATE PET PROJECT WILL DELIVER A DEATH BLOW TO THE USFINANCIAL STRUCTURES. THE BERNANKE USFED HAS SHATTERED ITS CREDIBILITY ON THE GLOBAL STAGE. $$$ As most important diagnosis, the USFed
Chairman Bernanke is fighting extreme insolvency
problems with extreme liquidaty measures.
He has misdiagnosed the Bernanke, in a rare appearance on a nationally
broadcast Bernanke has begun a tragic comedy of committing professional suicide in full public view. He seems either oblivious or ignorant or unconcerned that the USDollar and USTreasury Bond are at great risk. Sean Callow is a senior currency strategist at Westpac Banking in Sydney Australia. He said "Bernanke is defending his decisions to a mass American audience. He is not giving way to criticism, whether it is domestic or international. It is another reminder that the dollar is a side effect of Quantitative Easing and not a top factor in the Fed's view." See the Bloomberg article (CLICK HERE). In my view, Bernanke is totally delusional, myopic, and psychotic in his departure from reality. A climax of diametrically wrong perceptions has been provided the American public and the global audience in a grand display to demonstrate how he is ignorant of economic principles. The tragedy is being played upon the American people. ◄$$$ A QE3 IN PUBLIC APPEAL TO THE AMERICAN POPULATION SEEMS A BLATANT LAST DITCH EFFORT TO WIN ACCEPTANCE OF A PLAN TO KILL THE ITS FINANCIAL SYSTEM WITH A SERIES OF NUCLEAR SHOTS. IN HIS APPEAL, BERNANKE LIED THROUGH HIS TEETH ON SEVERAL COUNTS. THE GOOD CHAIRMAN LEFT HIMSELF VULNERABLE TO SIMPLE PROOF OF HIS LIES BEFORE THE PUBLIC SPOTLIGHT. USTREASURY BOND CREDITORS HAVE BEGUN TO REALIZE THE USFED HAS GONE ASTRAY ON A PATH TO PERDITION. $$$ The most outrageous example of profound lies and grand deception from his 60 Minutes interview was when USFed Chairman Bernanke denied the charge of Printing Money, which he claimed (today) he is not doing after admitted he was doing in March 2009. He actually stated, "We are not printing money. The amount of currency in circulation is not changing. The money supply is not changing in any significant way." To refute and prove him a liar is a simple task. Check the M1 Money Supply index, which is rising steadily. Of course the money in circulation is changing, and rising fast.
Harken back to 15 March 2009, during another 60 Minutes interview. Take Bernanke's own words. He made clear that the USFed was using funds not from tax money. He said, "It is not tax money. The banks have accounts with the Fed, much the same way that you have an account in a commercial bank. So, to lend to a bank, we simply use the computer to mark up the size of the account that they have with the Fed. So it is much more akin to printing money than it is to borrowing. We need to do that, because our economy is very weak and inflation is very low. When the economy begins to recover, that will be the time that we need to unwind those programs, raise interest rates, reduce the money supply, and make sure that we have a recovery that does not involve inflation." See the Michael Reinstein article (CLICK HERE). Thanks, Ben, that explains it well. The man will not react in time because he is blind and follows all the wrong signals. Jon Stewart of Comedy Central on HBO
shows Bernanke to be a liar and fool in
four quick minutes. A public campaign
to deny the foundation of hyper-inflation
must succumb to a public rebuttal. Stewart
uses brief clips from Bernanke interviews
to slice him to pieces, in the height of
mockery and ridicule. He even comments on
a recent event where the USDept Treasury
printing press hiccupped and barfed as it
folded over bills during the complex process
of layered security devices and implants.
He evoked great laughter from the comedy
audience. Stewart said, "We have
outsmarted ourselves with our our fancy
security measures to the point where our
money is committing suicide on the press.
I hope we still remember our passwords,
or at least the answer to the security question
prompts. What is our country's maiden name?
The Jackass disagrees most vigorously with
Bernanke. Despite his claims, the QE2 debt
monetization program is NOT about USEconomic
support, as he said on national television
during the popular 60 Minutes show. That
is pure policital cover. QE2 is all about
USTreasury Bond asset bubble maintenance,
and to some extent bank bond redemption.
The inflation based support is soon to go
out of control, Aaron Krown of the Mortgage Lender Implode
web journal agrees. In a new article entitled
"Why What The Fed's Doing is Inflationary"
a rebuttal was lodged. Krowne wrote, "There
is no way to back out of the Fed's QE. It
is not only a bluff by the Fed. It is mathematically
impossible to get out without absorbing
the losses, which is tantamount to printing
the money to do so. The only question is
the timing. The end result is no longer
in question. What is going on now is that
the market is figuring this out (particularly
the ◄$$$ THE HIDDEN BENEFICIARY TO THE VAST QE PROGRAMS, THE MONETARY EXPANSIONS, HAS BEEN THE STOCK MARKET. THE DIRECT BENEFIT IS TO THE USTREASURY BOND MARKET, WHERE A GRAND GLOBAL BUBBLE MUST BE MAINTAINED. THE URGENCY TO KEEP THE BUBBLE GOING HAS LED TO POLICY THAT PACIFIES THE LAST ASSET HELD BY THE PUBLIC IN PENSION FUNDS, NAMELY STOCKS. $$$ When QE1 was announced, the support of
the housing and mortgage markets was of
paramount importance. True to their word,
the USFed gobbled up so much mortgage bond
securities, that it wrecked its balance
sheet. The venerable corrupt nexus owns
a ruined asset book of assets, with value
somewhere between minus $800 billion and
minus $1.3 trillion. Other analysts have
concluded that a mere 3% to 5% decline in
their mortgage assets would render their
balance sheet as negative. The mortgage
assets are obviously worth 30% to 50% less
than taken in, especially the leveraged
credit asset rubbish. See the Collateralized
Debt Obligation wreckage, all worthless,
extreme losses to the bone. If the USFed
truly wished to aid the USEconomy, it would
support the housing market. But QE2 and
QE Lite targeted USTreasurys, with open
statements. The verbage distraction spoke
of aiding the USEconomy, all nonsense. The
USFed wishes to support the unsupportable,
the USTreasury Bond bubble, the same asset
class that is seeing a growing global boycott
movement. The PIMCO frontrunning
of mortgage assets bought on credit margin
appear to be headed either to the Fannie
Mae bottomless pit or the likes of big The QE2 program will provide an urgently
needed prop for USTreasurys, the most liquid
asset group on the planet, hardly in need
of support if a healthy financial environment
was in the process of restoration. The
hidden QE benefit comes to the stock market,
the home of myriad private pension funds.
Both large pension management firms like
TIAA-CREF and corporate conduits rely upon
the stock market. The majority of IRA, 401k,
and Keough plans also rely upon the stock
market. Take it further. The public outcry
for financial loss has been acute for the
home equity vanishing act. A remarkable
correlation can be seen between the USFed
purchase volume of USTreasurys in the dreaded
debt monetization scheme and the S&P500
index. The graph is indisputable and
more than a little surprising even to the
most suspicious of analytic observers. The
maestros must use the USTBonds as a conduit
for the Working Group for Financial Markets,
aka the Plunge Protection Team, which purchases
the stock market index directly in a major
hidden prop. Most of the entire
◄$$$ BANK OF The legal nightmare for Bank of America
(BOA) continues. Its financial condition
has degraded rapidly from the full impact
of the series of important setbacks, mostly
featuring victories for the homeowners.
But the damage is hidden from view and its
stock rises. The crux of the matter is
that mortgage bond holders and mortgage
loan portfolio owners do not have perfected
liens. They are sitting on $trillions
of basic unsecured notes. The unwind
process can only result in a death of the
major
On November 16th, the honorable Judge Judith
Wizmur rejected a bank foreclosure claim
on the home of one John Kemp, ruling that
his mortgage company, since gobbled up by
Bank of America, had failed to deliver the
note to the trustee. Precedent made. The
offending financial firm was Countrywide
Financial. Thus the trustee was left with
no standing to seize the property. Hundreds
of thousands of other home foreclosures
could similarly be blocked using the same
challenge. Extremely weak and vacant denials
were issued by BOA attorneys. With the conviction
and credibility of a serial killer in protest,
a Larry Platt disavowed the statements by
DeMartini, stating that she was mistaken.
It is a wonder that she was not cast as
a purveyor of child pornography and her
office computers seized. See the Bloomberg
article (CLICK HERE).
These are crime syndicate activities under
observation and dissection finally. The
gigantic threat looms over the Wall Street
major banks for truly magnificent Put-Backs
of mortgage bonds worth well over $1 trillion
from investors to the banks who sold them
in fraudulent manner. Their violations
are being catalogued. The process of dumping
entire truckloads of rotten credit assets
on bank lawns is imminent. However, that
process since so highly charged and deadly,
will require court action. It will start
with a dribble of activity, then reach a
climax in court decisions that decide the
life or death of big ◄$$$ BANK OF The Wall Street streak of deep fraud in
the municipal bond market is soon to blow
sky high. A case was just completed, certain
to have opened Pandora's Box. The venerable
criminal body known as Bank of America cut
an agreement to pay $137 million in restitution
for its role in a nationwide bid-rigging
conspiracy for municipal bond investment
contracts, a deal made with the sword held
overhead by the USDept Justice (DOJ), in
the Antitrust Division. The lead warrior
is Christine Varney, the antitrust chief.
She said, "Stay tuned to this channel.
I think you will see a lot more activity
in the coming weeks and months. We are
committed to getting restitution, full restitution,
to all the municipalities that were victims
of this scheme. The bank's participation
in the leniency program has also resulted
in this resolution to address the harm caused
by its wrongdoing. As a result of its voluntary
disclosure of its anti-competitive conduct
and its ongoing cooperation, Bank of
By serving as the open door in assisting
the USGovt in the official probe of the
$2.8 trillion municipal bond market, Bank
of America has won leniency. BOA has provided
documents, e-mails, and telephone tapes,
according to court records of civil suits.
In a September case, Douglas Lee Campbell,
formerly an employee of the BOA municipal
derivatives group, pleaded guilty on
September 9th (with full court transcript)
for his role in a conspiracy to pay state
and local governments below market yields
when bonds matured and turned over.
The other guilty banks will likely pay much
higher penalties in settlements in civil
lawsuits. They include JPMorgan, UBS, a
subsidiary of General Electric, and a former
subsidiary of the Belgian bank Dexia, all
of whom have reported in mandatory regulatory
filings that they face civil suits by the
Securities & Exchange Commission in
the Varney has invited the press and analysts into the chambers, where they have obtained details on the continuing probe. The investigation centers on investment agreements that municipalities enter into with money raised through bond sales in continuous fashion. They are called guaranteed investment contracts, since they permit local governments to earn a return on the funds when they mature and roll over, invested again. The churn continues until the cash is needed for schools, roads, or other public works. The USDept Treasury encourages competitive bidding to ensure that localities receive market rates of return. Therein lies the criminal fraud. Prosecutors have charged that favored bankers received inside information from brokers who handled bidding for the contracts, so they could slice the market in a rigged scheme, that featured kickbacks to brokers by the big banks. The bond issuers (municipalities) received lower amounts of funds. The same BOA banker Campbell admitted to a federal judge that he had conversations prior to the bid with the brokers about who the bidders would be, what the bids would be, and who would win. The legal process will chew its way to
the top of the pyramid, where the Wall Street
upper echelon reside, closer to the syndicate
helm. Bank of America did not act as the
leader or organizer of the bid-rigging conspiracy,
according to the DOJ. So far, BOA bank agreed
to pay restitution and interest ranging
from a tiny $8418 for the Three former UBS bank executives were indicted
last week in the municipal bond rigging
fraud case in focus. Peter Ghavami, Gary
Heinz, and Michael Welty were charged with
six counts in US District Court in ◄$$$ JPMORGAN IS ACCUSED OF COMPLICITY WITH THE MADOFF PONZI SCHEME. THEY ACTED AS THE MADOFF BANKER IN GIGANTIC FRAUD. ALSO H.S.B.C. IS ACCUSED IN A SEPARATE COMPLAINT AND GIANT CLAIM. THE ANGLO BANKS ARE BEING SURROUNDED FOR POPULAR ATTACK. $$$ Irving Picard will become a household name
soon. He was appointed as trustee by a In a double-barreled attack, Picard as
trustee announced a lawsuit against HSBC
out of ◄$$$ BIG USBANKS AND USGOVT PREFER FORECLOSURE TO HOME LOAN MODIFICATION. THEY EARN SIGNIFICANT PROFITS FROM LEGALIZED COLLUSION WITH THE F.D.I.C. IN PROCESSING HOUSEHOLD MISERY. THE USGOVT HOME LOAN PROGRAMS ARE A SHAM USED AS POLITICAL COVER. $$$ The USGovt and Wall Street are running
a grand mortgage loan scam right under our
noses. Home foreclosures are much more
desired than home loan modifications, since
profitable to the big USECONOMY IN QUICKSAND ◄$$$ THE CHOICE AGAIN IS STIMULUS
INSTEAD OF DEFICIT REDUCTION, DURING A TIME
OF SEVERE ECONOMIC RECESSION THAT GOES UNRECOGNIZED,
A RECESSION OF 7% IN BASIC TERMS.
A WILD CARD IS THE PROPOSED OBAMA ADMIN
PLAN THAT IS WORKING TOWARD CONSENSUS ON
MANY TAX FRONTS. IT IS TAKING SHAPE, ALTHOUGH
HEAVILY DEBATED. THE STIMULUS IS REAL BUT
SMALL. THE SAFETY NET IS FRAYED BUT STILL
IN PLACE. THE BUSINESS TAX BREAK IS PERFECT
BUT TWO YEARS LATE. MORE THAN A WILD CARD,
THE TAX PLAN MIGHT BE THE The Obama Admin has proposed a 10% reduction
in the federal workforce, as part of his
belated deficit reduction plan. Excluding
postal workers, 2.1 million executive branch
civilian employees report to work each week.
A 10% reduction would be 210k jobs axed.
Now that the USGovt deficits have been three
years running over $1.4 trillion, the politicians
in clown suits have decided to act seriously
in spending printed money to cover the yawning
gigantic debts (debt monetization). City
and state cutbacks could easily result in
another 400k in nationwide job cuts. The
significant government bloat must come down
much more. The civilian workforce must grow,
but it will not for a long time. The current
consensus agreement on the tax package calls
for the Bush tax cuts for the wealthy
to continue two more years, at a cost
of $60 billion. Also, the 15% capital gain
tax will remain in place, with an estate
tax of 35% considered punitive. The payroll
tax holiday, a favorite among the masses,
will permit $120 billion to remain in household
pockets. The extended unemployment benefits
will continue in extended form, costing
another $60 billion. The Alternative Minimum
Tax nightmare has been given patchwork treatment
through 2011 and 2012, not properly addressed
yet. A nice new tax measure, one the
Jackass proposed for a few months, is the
100% business expense writeoff. All
equipment costs can immediately be written
off, instead of the usual 3 to 5 years.
It should actually result in some hiring,
although its effect will be limited during
a powerful deterioration phase for the USEconomy.
The writeoff rule should result in $200
billion in business savings, applied to
a whopping 1.5 million businesses. The Tax
Plan might not be approved by the USCongress,
in a fit of austerity, good judgment, or
admission of policy defeat. The crowning
blow to the Obama Admin could be this tax
plan, yet another massive deficit producer.
President Obama left Bill Clinton on the
podium for 20 minutes to explain the plan's
rationale, an irresponsibile gesture without
precedent. This is game over, possibly,
for The housing market and financial sector
declines in progress have extraordinarily
powerful momentum and endurance. Estimates
above in the tax plan effect were provided
by Macro Economic Advisors. To be sure,
the USGovt continues to make active choices
in favor of stimulus in whatever form instead
of budget deficit reduction in any type.
The federal deficit continues to spiral
upwards, sure to be on public display early
in 2011 when the debt limit is met, then
debated, in global view. The comparison
of actual full-year nominal (unadjusted)
GDP versus a year ago is minus 7%, more
the reality. The simplest most accurate
way to measure the economic growth is to
compare nominal activity versus the same
quarter a year ago. It avoids all the deception,
lies, and amplifications from dealing with
consecutive (sequential) quarterly nonsense.
The USGovt favored method involves
errors from sequential calculations coupled
with the distortions from inflation and
hedonic (value) adjustments to be then multiplied
by four to achieve absurd claims of slow
growth, when deep recession is in progress.
Even more simplicity and common sense is
used to compare one year's performance versus
the previous year, without any adjustments,
shown below in the astonishing graph. The
USEconomy is mired in a powerful recession,
bordering on depression. The catapult into
the abyss occurred in the year 2009, coincident
with the death of the
◄$$$ THE USGOVT PRICE INFLATION INDEX
IS ABSURDLY DISTORTED. PITTED AGAINST THE
COMMODITY COMPONENTS, IT IS LAUGHABLY INCORRECT,
SUBJECT TO DERISION FROM CHILDREN. MANY
FORECASTS CALL FOR 1% CORE C.P.I. OUTCOMES
FOR 2011, WITH CONTINUED NORMALCY. THE PROPAGANDA
IS AN INSULT TO THE PEOPLE, WHO KNOW VIVIDLY
OF UNIFORMLY RISING PRICES. $$$
That tiny bar on the far right is the official Consumer Price Inflation index, which might reflect the price structures on the planet Zenon but not on planet Earth. What are shown to accompany the CPI serve as important commodity components. Other rising items are insurance, health care, utilities, city fees, tuition, telephones, shipping costs, and roadway tolls, which are all up significantly in the last year. This is a great chart, thanks to the Casey folks, that provides excellent exposure of the cockeyed CPI. The Producers Price Index would be better to compare and contrast with the commodity items. The PPI is also in the absurd 2% to 3% range, when all components are zooming upward sharply. Many forecasts call for 1% core CPI outcomes for 2011, which is madness wrapped in delusion, seeping with incompetence and overrun by compromise. The economists in clown suits at the Federal Reserve Board of San Francisco actually put in written documents (therefore accountable professionally) that the 'Other CPI' measure, namely the personal consumption expenditures price index (PCEPI), rang up at +1.3% over the last 12 months. This second standard price inflation metric is derived from personal income data published by the USDept Commerce Bureau of Economic Analysis. They call the PCEPI a relatively low level of headline inflation, but by no means the lowest reading ever recorded. See the Federal Reserve article (CLICK HERE). The absurdly low figure permits the USGovt to reduce nominal economic activity by a mere 1% to 2% on a continual basis, and thereby badly over-estimate the GDP growth. They should reduce the bare nominal growth by at least 6% and perhaps 8% to account properly for inflation. Hence, the ongoing USEconomic recession of minus 5% or worse is called slow growth at plus 2% to plus 4%. Their deception is an abomination, consistently applied for several years. ◄$$$ THE JOBLESS RATE IN THE USECONOMY IS AGAIN TRENDING HIGHER AFTER FAILED ATTEMPTS AT STIMULUS AND CONTINUED DANGEROUS HOUSING MARKET DECLINE. THE GENERAL DETERIORATION HAS YET TO BE RECOGNIZED. QUANTITATIVE EASING WILL ACCELERATE THE DOWNWARD MOMENTUM IN THE LABOR MARKET, NOT EASILY HIDDEN. $$$
◄$$$ THE NOVEMBER NON-FARM JOBS REPORT WAS SICKLY PATHETIC WEAK. EXPECTATIONS WERE FOR BETWEEN PLUS 130K AND 150K. THE FINANCIAL MARKETS HAD BEEN BUSY DIGESTING THEIR OWN PROPAGANDA. THE REALITY IS AN EXTREMELY BAD LABOR REPORT. RATHER THAN ADJUSTED TO REALITY, THE POWERZ WILL TWIST EXPECTATIONS AND REKINDLE NEW FALSEHOODS. $$$ The November Jobs Report came in extremely
feeble with just 39k new jobs supposedly
created. The reality is probably an order
of magnitude worse, if cockeyed adjustments
are removed. The report was an unblemished
disaster. Even the 50k in private sector
hiring was way worse than expected. The
redefined jobless rate rose to 9.8%, enough
to threaten the important 10% level again
where alarm bells will ring. No gains were
logged either in workweek hours or earnings.
Even the vaunted retail sector shed an
amazing 28k jobs, going into the biggest
shopping season of the year, something almost
never seen. Retail activity is brisk,
but purchases are not, unless at heavy discount,
which harms job security of the sales clerks.
The consensus among poorly educated and
badly misguided ◄$$$ THE FINANCIAL PRESS AND USGOVT EACH CELEBRATED THE LOWER JOBLESS CLAIMS TWO WEEKS AGO. BUT AGAIN THE SEASONAL ADJUSTMENT DEVICE CAN TAKE THE RESPONSIBILITY, NOT FEWER JOB CUTS. $$$ The USDept Labor has a knack for lowering the bar of expectation on household misery. In gearing up for the holiday season, the job cuts are typically not so robust. For the week of November 20th, a case in point, the headlines celebrated the big decline in jobless claims. It heralded the lowest count since July 2008, great tidings. It was all in the seasonal adjustment device, the handy abused tool. A few years ago, the metric mark used to be 300k jobless claims for turning the corner into favorable territory. Then it was 500k imposed by fiat last year. Now it is 400k. The jobless claims without benefit of seasonality tell a more accurate story. The week of Nov 13th had 409.5k jobless claims, then the week of Nov 20th had 462.5k, a jump and surely not a decline as reported. Then the week of Nov 27th had 410.6k, explained by the US Thanksgiving holiday week. The climax was a huge increase of 169k on December 4th to reach 582k in jobless claims (without seasonal adjustment), the highest level since January 16th. The chart tells a clearer story of stable jobless insurance claims. The total continuing state claims count is 3.854 million as of Nov 13th, down from 5.057 million a year ago. However, the Extended Unemployment Claims, a program enacted in 2008 to handle the hidden great depression, had 3.944 million participants. See the John Galt article (CLICK HERE). The USGovt relies very heavily upon constantly changing seasonal adjustment techniques that suit their needs and tell whatever story they choose. Its device should rarely be altered in order to reflect the stable nature of seasonal change.
John Galt describes the deception well in plain detail. The standard USGovt method is based again of hokey models without substance. Grand methodology differences exist between the basic method and the adjusted method, which contains a fallacious model. He wrote, "The dirty secret the bubbleconomists, stock hucksters, and propagandists do not want you to know is that the Seasonally Adjusted number is based on a model which is keyed off the prior year's data and calculates what the theoretical job losses are, based on the reporting data from the state. Results are derived at by something similar to the Birth/Death model used by the BLS. In other words, it is made up to be convenient and subject to the approval of the White House Chief of Staff. On the other hand, the Non-Seasonally Adjusted numbers consist of the raw data reported directly from the states on a weekly basis of which the deadline used to be Tuesday afternoon at 4 pm. This number [by contrast] reflects actual bodies, humans, and not seasonally-adjusted people who may or may not exist. That increase in NSA claims and the revision upward reflects a massive deterioration which usually does not occur until after the Christmas Retailers begin to lay off temporary hires and manufacturing facilities move into shut down mode, generally the Friday before Christmas week. If this trend continues, we will see well over 1.8 to 2 million new claims for unemployment for December of this year. As January rolls around, a statistically horrible month for first time claims, the idea that this translates into a decline in the monthly unemployment report is inevitable. If not during the first cut, at least as future revisions are issued." Labor market conditions are growing worse!! ◄$$$ LARGE CORPORATIONS INDICATE A NOTABLE RISE IN LAYOFFS, AS CITED BY THE CHALLENGER REPORT. THEY ALSO CITED MUCH FEWER JOB HIRES. SMALL BUSINESS GAINS CANNOT COMPENSATE FOR THE LARGE SITE SECTOR. $$$ In a rare public article that covers the respected work of Challenger, Gray & Christmas, a contrasting picture is presented. Some divergence exists between its report and the ADP payroll report which showed optimism with 93 thousand jobs added in November, the largest gain in three years. The Challenger report cited large corporate layoffs announced in November to total 48,711 jobs, the greatest in eight months. John Challenger said, "Job cuts that have been concentrated at the state and local level could expand to include federal workers in the new year. Other sectors have seen significant declines in job cuts this year and, at the moment, there is little evidence of a possible resurgence in 2011." The same report cited large employers announced plans in November to hire 26,012 workers, a significant decline from the 124,766 in the prior month. Much of the big drop was attributed to seasonal hiring factors, they believe. Retail businesses led the gains, planning to add 15,900 workers. Government and non-profit agencies have announced plans shed 138,979 workers this year, which is 177% more than the 50,168 firings by the pharmaceutical industry, the next biggest sector to cut jobs. A pay freeze will be imposed to cover two
million federal workers in the next fiscal
year. The biggest local cuts are scheduled
for ◄$$$ THE NOVEMBER NON-FARM PAYROLL DATA WAS FLAT. THE LABOR MARKET HAS FALLEN AND CANNOT GET UP!! THE CENSUS HIRE DISTORTION IS IN THE PAST. SO LETHARGY AND SLUGGISH DETERIORATION REMAINS. TO CLAIM EMPLOYMENT IS RISING IS AN EXERCISE IN FANTASY. $$$ Refer to the Shadow Govt Statistics, borrowing
a few of their adept comments. The level
of payroll employment stands lower than
a decade ago, despite the
◄$$$ GENERAL MOTORS HAS USED BRUTE FORCE TO STUFF THE DEALERSHIP CHANNEL WITH INVENTORY. THE STOCK PRICE IS REGARDED BY THE USGOVT SPONSORED INVESTOR AS A SUCCESS MEASURE. IT IS MORE LIKE ANOTHER DECEPTION AFTER HEAVY HANDED MANAGEMENT. LATER, THE STOCK PRICE WILL FALTER, AFTER THE USGOVT STOCK DUMP IS LARGELY FINISHED, AND THE UNEASY DIGESTION PROCESS GIVES OFF HEARTBURN. $$$ The USGovt is too quick to proclaim a success in its rescue of General Motors, often called Government Motors in ridicule. Hidden deep in the disappointing November car sales report is the significant inventory rise, a tumor on the greater balance sheet. GM sold 168,739 cars in November, a 11.4% increase from November 2009, during dark disastrous times. The figure came in well below the hyped expectations of a 13% rise. Ugly is the sharp linear rise in the GM car inventory cramming at tens of thousands of dealer locations. It is unsold inventory at almost 537k units. The chart attests to blatant channel stuffing. So the parent corporation sold over 11% more cars, but they sit unsold on dealer lots, who were coerced to accept the higher allotment. The USEconomy is experiencing widespread inventory growth. We see a follow-up effect of gross flatullence after the blockheaded Clunker Car Program meal. Witness the near record inventory accumulation that provided a hollow boost to economic numbers. Of course, no strength exists.
The GM executive orders assured an aggressive channel stuffing program whereby it offloaded over 110,000 cars since July onto dealer lots. Meanwhile, dealers enjoy floorplan leases subsidized by taxpayers. Liquidation of the cars at reduced prices and 0% loans will come later after the congame conducted against shareholders. The USGovt is busy selling its GM stock at a profit with heavy publicity of a success. If the October GM inventory level were held flat, the sales data would have recorded a mere 2.4% rise in November sales, no cause for celebration. The stock price for GM DMM GETCO would be forced to endure downdrafts. The pendulum has swung to each extreme. The dealer inventory level was 385 thousand at the end of 2009. It has risen with alarm to almost 537 thousand at the end of 2010, a huge 40% jump. That is not progress, but rather bloat, evidence of USGovt mismanagement already. See the Zero Hedge article (CLICK HERE). ◄$$$ PROFLIGATE AMERICAN CONSUMERISM HAS MET HARSH INSOLVENCY REALITY. A QUICK DEBT SURVEY REVEALS A CRIPPLED POPULATION. THE DEBT BURDEN AND ITS BANKRUPTCY AND INSOLVENCY AFTERMATH ARE A NATIONAL TRAGEDY. REVERSAL OF THE INDEBTED POSITION IS A SLOW BLEED. $$$ The Burning Platform has provided a nice
quick survey of the deeply cratered debt
landscape and its burden. Austerity will
become a standard feature of that landscape,
since the home equity ATMachine has been
removed for usage, while job security with
income vanishes too. Consumer credit outstanding
stands at $2.41 trillion, roughly the same
level as in early 2007, but still significantly
higher than the $1.5 trillion in year 2000,
a 60% increase in ten years. Personal income
has risen from $8.4 trillion to $12.6 trillion
over this same time frame, if one believes
the rubbish from USGovt agencies. Americans
have substituted debt for income in order
to maintain a certain unsustainable lifestyle,
often in competition with neighbors and
peer groups. A mass delusion of wealth
extended from the housing asset bubble and
its associated mortgage finance bubble.
Spending habits changed, difficult to reverse.
Wind-down of the debt incurred is even more
difficult unless bankrutpcy is declared.
The peak in Details are ugly. The average credit card balance per household at $15,788 stands a little less than half the average annual wage. In all, 609.8 million bank credit cards are held by US consumers, with a 13.01% credit card default rate. In 2006, the United States Census Bureau determined that nearly 1.5 billion credit cards were in use by Americans. Put that in perspective. Imagine them to form a stack of credit cards that would extend 70 miles into space. The abuse of credit cards is rampant, as penalty fees from credit cards totaled about $20.5 billion in 2009. The national average default rate in January 2010 stood at 27.88% for Americans. Personal bankruptcy filings totaled 1.40 million in 2009, a rise from 1.09 million in 2008. Bankruptcies in 2010 are on pace to exceed 1.6 million. Over 58 million adult Americans, equal to 26% of the population, admit to being late in prompt bill payments. The federal role model is wretched beyond words. For perspective, the USGovt is the worst example. It goes $5 billion deeper into debt every day. Competent analysts anticipate the USGovt deficit to remain stuck above the $1 trillion level for the next decade. As Howard Davidowitz says in plain terms, "In other words, we are bankrupt." See his ugly truth YouTube video (CLICK HERE). HOUSING MARKET DISINTEGRATION ◄$$$ THE HOUSING MARKET FLOOR IS IN THE PROCESS OF CONTINUED DISINTEGRATION. EVEN WITH LOWER PRICES, THE PURCHASE OF FORECLOSED HOMES IS VANISHING, WHILE THE HIDDEN INVENTORY ACCUMULATES IN PILES ATOP PILES. AVENUES TO DUMP FORECLOSED HOMES ARE DRYING UP, ASSURING A DEEPER DUNGEON FOR BOTH THE HOUSING MARKET AND THE BANKS STUCK WITH THE DEAD ASSETS. THIS IS THE SPREAD OF DEAD FINANCIAL TISSUE IN AN ORGANISM LACKING CIRCULATION FROM AMPLE CREDIT. $$$ Chalk up another victim, an unintended
consequence, from the terminated program
by the USGovt to provide homebuyer tax credits.
RealtyTrac reported that the market for
foreclosed homes has practically vanished,
and suddenly so. This is very big news,
but not reported by the intrepid sleepy
subservient hack US press. They are too
busy citing some nonsense about a USEconomic
recovery. Here are some details provided
by the real estate tracking firm. Sales
volume has plunged and price discounts are
soaring. The volume of foreclosed home
sales fell by 25% from 2Q2010 to 3Q2010,
and fell by 31% from 2Q2009. The home
price discount of homes in foreclosure versus
those not in foreclosure has risen considerably.
The discount was 26% in Q2 of this year.
It was 29% in 3Q2009. It is most recently
reported at 32%, a discount at five year
high. Demand for ultra bargain properties
has collapsed following the expiration of
the homebuyer tax credit. RealtyTrac wrote,
"Foreclosure homes accounted for
25% of all Many details are gory ugly. Purchaser interest has evaporated as little or no purchasing power remains in the lower and middle sections of the housing market. A total of 188,748 homes were in some stage of foreclosure in 3Q2010 from loan default, on track for auction sales or bank owned inventory (REO), to be sold to third parties. This figure has decreased in recent months. The average sales price of properties in some stage of foreclosure was $169,523 but in a steady decline of dangerous proportions. Banks are recovering less and less. An anomaly has occurred in the non-foreclosed home market. While the average price of non-foreclosed homes posted a slight gain in Q3, the volume decline was very significant. RealtyTrac wrote, "The average sales price of properties not in foreclosure was $249,721, up 6.42% from the previous quarter and up 4.36% from the third quarter of 2009. Sales volume of non-foreclosure properties decreased 29% from the previous quarter and nearly 31% from the third quarter of 2009." See the Zero Hedge article (CLICK HERE). If the discounted market has vanished, the regular conventional market must be in tatters, in total shambles. The dead assets are clogging the banking system, going through a decomposing stage, rotting in place, stinking up the joint. Yet on the other hand, perhaps foreclosed homes have suffered vandalism damage, even sabotage from previous angry owners. If banks cannot dump their stench inventory gathered from the foreclosure process, they will surely drag down the entire market while suffering deeper death experiences themselves. The inventory is rotting on the bank shelves. In my opinion, the already dead banks are in the process of dying again, like a second tier morgue beneath the first level where zombies reside and move about under the disguise of life forms. The zombies are in effect slowly dying, again. Again, this is the spread of dead financial tissue, necrosis, the morphological changes indicative of cell death caused by progressive enzymatic degradation. The banks are decomposing gradually, and producing a balance sheet stench the nation has never seen in its entire three centuries of history!! ◄$$$ THE HOUSING INVENTORY REMAINS A BULGE OF 2.1 MILLION UNITS. ALTHOUGH REDUCED, IT IS LARGE ENOUGH TO SUPPRESS HOME PRICES FOR SEVERAL YEARS. THE HIDDEN INVENTORY IS LAYERED AND LYING IN WAIT. $$$ The local realtor Multi-List inventory
numbers show a 3.2% national drop in active
listings from September to October on www.Realtor.com.
The data overlooks layers of hidden inventory
held by banks and financial firms, since
not within the visible system. The real
estate industry estimates a shadow housing
inventory to be 2.1 million units, which
equates to about 23 months of supply.
The normal inventory level is 7 months of
supply. In no way is the housing market
stabilizing. It contends with tumors of
hidden bloated inventory. My forecast
is for home prices to fall to levels 15%
to 20% BELOW construction costs before this
nightmare ends. Housing and mortgages
will kill the Confusion (if not chaos) in the mortgage
foreclosure process will continue to render
the housing market in disarray. Home purchases
are 30% linked to foreclosures, but a growing
number are working toward court decisions.
The big ◄$$$ GOOGLE HAS PROVIDED A SATELLITE VIEW OF THE AMERICAN FORECLOSURE NIGHTMARE, LIKENED TO A MEASLES EPIDEMIC, OR BETTER YET TO CANCER. CLICK ON YOUR REGION THEN LOCALITY TO SEE THE EXTENT OF DAMAGE. NO HOUSING MARKET RECOVERY CAN BE SEEN ON THE HORIZON FOR AT LEAST TWO MORE YEARS. $$$ Google Map has expanded the tools for people to drill down into granular detail. A capability made available since 2008 can be used to examine your region or metropolitan area, even neighborhoods. Home foreclosures and their sales can be viewed with a magnifying glass for inspection. A shortcoming is that the millions of REOs (bank owned homes) that have been seized and/or sold are not shown, just foreclosure sales. Here is a step-by-step procedure for Google Maps Foreclosure Listings: 1.
Punch in any 2. Your options are Earth, Satellite, Map, Traffic and... More (select More) 3. The drop down menu comes. Check the box option for Real Estate 4. The left column will give you several options (select Show Options) 5. Check the box marked Foreclosure.
The maps reveal an entire nation plagued
with foreclosures and their associated sales.
It is a stark shocking graphic depiction
of the extreme level of inventory in the
◄$$$ COMMERCIAL PROPERTY PRICES PLUNGED IN OCTOBER. BANKS ARE TOSSING IN THE TOWEL FINALLY, EARLY IN THE PROCESS. HMMM, OR DID THEY? A CONFLICTING REPORT COMES FROM A DIFFERENT PRIVATE SOURCE. MY VOTE GOES WITH THE PLUNGE VIEWPOINT, SINCE CONSISTENT WITH THE RESIDENTIAL PROPERTY MARKET SITUATION AND BADLY STRUGGLING HOUSEHOLDS AND A STUCK LABOR MARKET. $$$ The USEconomy's dependence upon assets for wealth generation has still a long way to reverse. The process of de-leveraging is early in its natural course. The tech-telecom stocks rendered much damage in 2000 and 2001, but nothing compared to the systemic wrecking ball banging into asset structures throughout the USEconomy from 2007 through 2011. Every type of property asset was puffed up. The residential housing has come down signficantly, with still more room to fall. The commercial decline is well along in its decline. New data from CoStar indicates that commercial real estate pulled back sharply in October after a few positive months. Data is sketchy though from CoStar, with a release due soon. The news dovetails perfectly with what is going on in the residential market, and thus adds credibilty to the parallel. The residential sector has faltered since the summer gains directly attributed to the federal buyer tax credit. Wretched condition of households and the labor market add credence to the commercial decline. See the Business Insider article (CLICK HERE). A conflicting report came from the independent
research firm Green Street Advisors. They
report a 2% rise in commercial property
values in November over the previous month,
and that prices are only 19% below peak
values. ◄$$$ USHOUSING MARKET VALUE IS EXPECTED TO FALL BY $1.7 TRILLION IN THE FULL YEAR 2010. SINCE THE 2006 PEAK, THE NATION HAS LOST $9 TRILLION IN HOME EQUITY AND THUS ITS LARGE PIGGY BANK TO RAID AND SPEND. ALMOST ONE IN FOUR AMERICAN MORTGAGE HOLDERS HAS NEGATIVE HOME EQUITY. EXPECT HISTORICAL RECORDS TO BE SET IN THE UNITED STATES FOR HOME PRICES TO GO WELL BELOW CONSTRUCTION COSTS. $$$ The total stock of Former USFed Chairman Alan Greenspan is on record as being extremely concerned that the next 10% in home price decline will capture many million more Americans, given the huge number of homeowners who sat on the edge of insolvency by summer 2010. The latest figure is 23.2% in 3Q2010 for homeowners saddled with mortgages in negative equity, a rise from 21.8% at the end of 2009. The future prospects for homeowners is bleak. Stan Humphries is the chief economist at Zillow. He said, "With foreclosures near an all-time high in late 2010 and high rates of negative equity persisting, it does not appear that the first part of 2011 will bring much relief. Government incentives can only temporarily hold back the tide." This is an endless bear market made worse by an insolvent banking system. The missing piece is solid industry and legitimate income, a fact that corrupted clueless clowns operating at economic counselors cannot possibly comprehend. All they preach is putting money into the hands of consumers, even if from a dole or printing press. Utter heresy, utter disaster!! The National Assn of Realtors announced
in late November that housing demand has
slumped since the start of the year, the
USGov tax credit having expired. They cited
the stubborn 10% unemployment rate in their
assessment. Sales of existing homes in
October fell to an annual pace of 4.43 million,
compared with 5.98 million a year earlier.
The annual average was 5.81 million over
the past decade. The median price was $170,500,
only slightly lower than the $172,000 average
a year ago. With an entire mountain range
containing unsold bank owned inventory,
the median price no longer tells the story
about the market wreckage and household
ruin. Almost one quarter of the metropolitan
areas tracked by Zillow realized gains in
home values in 2010. The details are 31
metro areas with gains among the 129 tracked,
and the gainers include
Notice the hitch in US median home prices
in the 1989-1991 recession and during the
1980-1982 recession. Also bear in mind that
the
The housing declines in the Thanks to the following for charts StockCharts, Financial Times, UK Independent, Wall Street Journal, Northern Trust, Business Week, Merrill Lynch, Shadow Govt Statistics. | |
