Will It All Come Tumbling Down? A 5 Star Rant!

Will It All Come Tumbling Down?
market-ticker.org...

Let's juxtapose two stories. First, from Bloomberg:

Aug. 14 (Bloomberg) -- More than 150 publicly traded U.S. lenders own nonperforming loans that equal 5 percent or more of their holdings, a level that former regulators say can wipe out a bank’s equity and threaten its survival.

Ok. Now how about this one?

WASHINGTON (MarketWatch) -- Delinquency rates for loans and leases at U.S. banks increased to a record 6.49% in the second quarter from 5.58% in the first quarter, the Federal Reserve announced Monday.

So let me see if I get this right.

At 5% of non-performing loans a bank is at risk of being insolvent.

But the entire banking system in The United States had its non-performing loan ratio increase from 5.58% in the first quarter to 6.49% in the second, a record, and higher than the 5% level at which the survival of a bank(ing system) is threatened with collapse.

Hmmmm.... So should we take from this that the entire US Banking System is about to collapse?

This much we know for certain - you're being screwed - systematically - to cover the sins of these banksters who made loans to people who they had no reason to believe could pay:

Being in debt is about to get a lot more expensive for millions of Americans. Credit card issuers have been rushing to raise rates in advance of this Thursday, when the first provisions of the Credit Card Accountability Responsibility and Disclosure Act (CARD) will go into effect, with other protections starting in February 2010.

Right. Including those who are good credit risks.

This is the problem with allowing the blatant and outrageous fraud in our system to continue: Those who are prudent, who have done only good and not bad things, get reamed repeatedly and are forced, at gunpoint, to pay for the sins of those who committed that fraud.

Yet we, as Americans, permit this.

We absorb 20, 25, 30% interest rates (while the banks borrow at zero) so the bank executives who knowingly granted credit to those who could not pay, then sold worthless securities to investors, do not go to prison for fraud.

We pay more than $30 billion in overdraft charges and allow banks to "shuffle" deposits and withdrawals to generate the maximum in these fines so that the bank executives who are knowingly mis-marking "assets" at higher than their true values can "cover" their sin and do not go to prison for fraud.

We pay the FDIC "assessments" and "loans" from Treasury, as taxpayers and banking customers, so that the FDIC can repay depositors after it absorbs a loss that it should not have incurred - a loss that happened because OTS, OCC and the FDIC failed to close banks in a timely manner that were cooking the books when they either knew or will willfully blind to the control fraud taking place at these institutions.

The Fed says that:

Demand for loans continued to weaken across all major categories except for prime residential mortgages.

The American people are wising up, but only to a degree. They are refusing to take on new credit (as they should, seeing as they're being charged not only for their own legitimate level of risk, but also for their next door neighbor who was intentionally given a loan that the bank knew he could not pay) and demanding in some small way that The Bezzle be eradicated.

The people recognize they're being violated repeatedly by the scam artists on The Beltway and Wall Street, but they're not quite sure how to stop it. Certainly, hollering at Congress hasn't done any good. The Fed has refused to enforce consumer protections, as has Treasury, and both have done their damndest to overrule state regulations and even State Attorney Generals whenever possible.

Here's reality folks:

The system still has too much non-performing debt in it, and that percentage is going up, not down.

It is getting worse, not better.

Much more Ranting at Link...


This is a must read rant from the Ticker Guy Karl Denninger...

This guy has been dead on about all this looting over the past couple of years and now he's calling the masses on our "Dancing with the Stars" mentality...

He's mad as hell and isn't going to take it anymore, and, doesn't want us to either...

I wonder if his words will mobilize the masses into some kind of action...SOON!!!

[edit on 8/18/2009 by Hx3_1963]

He makes a great point, but the majority of Americans are still a bit paralyzed. I am not sure what the deal is, but I suspect that we have been living such a relatively easy life that we don't know what it would mean to protest or to make our voices heard. Add that to the fact that government seems to do what it wants - protest or not - so it seems futile.

Did the majority of Americans want to go into Iraq? No.
Did we go anyway? Yes.
Did the majority of Americans want to bail out banks? No.
Did we do it anyway? Yes.
Does the Air Conditioning still work? Yes.
Does gas still cost less than $5/gal? Yes.
Is Dancing with the Stars or I'm a Celebrity Get Me Outta Here on tonight? Yes.
Will we protest? No.

The big bankers that are ripping the people of the US off will continue to do so and get away with it as long as they make the simple creature comforts available to the majority of Americans. We will continue to take it as long as they use lube and promise to cuddle afterward this time. They will change, I just know it. I deserved that black eye for not being a good consumer... Really, it will be different this time.

I think when the bottom falls out and people see something that will change life forever - like the denomination of the dollar, hyperinflation, or 401k disappearance part II then MAYBE there will be some protest. Depends if they renew Big Brother or not...

reply to post by nydsdan
He has a fairly large following...

Maybe some of this will spill over into the 9-12 march...

I"m thinking this Health Care, (and other), carp is just what they needed to distract us from the larger issues...

...Get us all riled up about something, they're now willing to concede...maybe...

Mean while the real issue goes on, buried behind town hall meetings, but, I have noticed some are not distracted, and have brought it up occasionally...just to get drowned out... :shk:

And I wonder just how many Congressmans names will show up in this "list"...none I would bet, but, maybe some of their "Buds" might...wonder how that will go over? :shk:

U.S. "criminally investigating" 150 UBS clients
www.reuters.com...

The Feds losing big time tax money now and need to claw as much as possible out of the cracks...

[edit on 8/18/2009 by Hx3_1963]

reply to post by Hx3_1963


What 9-12 march?

The two stories in the Op/ed don't correlate at all. One says 150 us lenders have more than 5% non-preforming loans.

While the entire financial sector is at 6.49%. If one single very large bank like Citi had 8% non-preforming it would be considered one of the 150, and would raise the national average. Perhaps the author misunderstood the meaning. Or the wording.

Anyways, I agree with the over all sentiment that the system is deteriorating not getting better.. with a system so dependent on credit and debt payments, unemployment is hardly the lagging indicator that it has been in the past..

Does that change anything for us? I think nydsdan said it best.

reply to post by Rockpuck


It is simple . . . if one bank being 5.0% is cause to go under, what does that say for our banking system, which is at a 6.49%.

Very easy correlation.

reply to post by Rockpuck

What 9-12 march?

They're going to take the party to DC on Sept 12...if it isn't nuked the 11th of course...

09.12.09 March on Washington
The Tea Party Movement Goes to Capitol Hill
912dc.org...


It should be interesting to see how many get off their couches this time...

I REALLY hope everyone does...I'll try to go if anyone around here has a spare seat...it maybe the last chance we get before Camp FEMA's re-education schedule...

If not I'll be downtown "Under the Oaks" in Jackson...where the Republican Party was formed with my signs...I'm neither of the 2 major Partys, but, it's a local Political hot-spot...so be it...

[edit on 8/18/2009 by Hx3_1963]

reply to post by Hx3_1963


I didn't even know about the 9/12 march on Washington. I was just down there a month ago. What kind of turnout do you think they will get?

Originally posted by Lemon.Fresh
reply to post by Rockpuck

 

It is simple . . . if one bank being 5.0% is cause to go under, what does that say for our banking system, which is at a 6.49%.

Very easy correlation.

I don't think you understand what I said at all. It doesn't correlate at all as examples.. and 6.49% and increasing says we are in line for another #$% storm.

www.abovetopsecret.com...

DAMN .. I want to go...... I wonder if I can make it out there with such short notice.. being unemployed, I don't have anything else to do..

They really need to get with the program and ADVERTISE these marches. There was one that happened here in town not to long ago and I never heard a word about it before hand.

more people are losing their homes and foreclosing on their mortgages today than at the height of the subprime crisis - thats right, PRIME loans, people with good jobs are foreclosing at a higher rate today than the subprime where interest rates reset and pushed UNEMPLOYED people into foreclosure -

Why ? Unemployment, Obama has done nothing to fix the underlying problem.

It probably will...all come down. What else can happen?

But...I say march on 9/12! If we can not be there in person, then call write and fax! Attend a town hall meeting! Peacefully protest in your town.

I say, if we can get the Whitehouse waving a white flag on healthcare, we can make progress in other areas.

Sure...the bail outs are a done deal...but stem the tide, it is the only hope.

S&F!

President Pantywaist in retreat: Barack Obama hoists the white flag over Stalinist health care proposals

The white flag is flying over Camp Obama, which makes a pleasant change from the red flag that, metaphorically speaking, has been flying there since January 20. Barack Obama’s plan for socialised health care on the Stalinist model across the United States is now in full retreat. Not only will it not play in Peoria, it will not play anywhere.

Politicians returning to Washington after scrubbing off the tar and feathers acquired at town-hall meetings are bringing with them a blast of reality that has been absent from Obama’s dreamland regime since his inauguration.

blogs.telegraph.co.uk... -proposals/

Victory is one battle at a time!

Next up?

HR1207