Inept-ocracy:
A system of government where the least capable to lead
are elected by the least capable of producing and where
the members of society least interested in sustaining
themselves are rewarded with goods and services paid
for by the confiscated wealth of a rapidly diminishing
number of producers.
Archive for the ‘The Economy’ Category
Inept-ocracy
Monday, December 24th, 2012Message From a 21 Year Old Female
Thursday, January 26th, 2012This was written by a 21 year old female who gets it. It’s her future she’s worried about and this is how she feels about the social welfare big government state that she’s being forced to live in! These solutions are just common sense in her opinion.
This was in the Waco Tribune Herald, Waco, TX, Nov 18, 2011
PUT ME IN CHARGE . . .
Put me in charge of food stamps. I’d get rid of Lone Star cards; no cash for Ding Dongs or Ho Ho’s, just money for 50-pound bags of rice and beans, blocks of cheese and all the powdered milk you can haul away. If you want steak and frozen pizza, then get a job.
Put me in charge of Medicaid. The first thing I’d do is to get women Norplant birth control implants or tubal legations. Then, we’ll test recipients for drugs, alcohol, and nicotine. If you want to reproduce or use drugs, alcohol, or smoke, then get a job.
Put me in charge of government housing. Ever live in a military barracks?
You will maintain our property in a clean and good state of repair. Your “home” will be subject to inspections anytime and possessions will be inventoried. If you want a plasma TV or Xbox 360, then get a job and your own place.
In addition, you will either present a check stub from a job each week or you will report to a “government” job. It may be cleaning the roadways of trash, painting and repairing public housing, whatever we find for you. We will sell your 22 inch rims and low profile tires and your blasting stereo and speakers and put that money toward the “common good..”
Before you write that I’ve violated someone’s rights, realize that all of the above is voluntary. If you want our money, accept our rules. Before you say that this would be “demeaning” and ruin their “self- esteem,” consider that it wasn’t that long ago that taking someone else’s money for doing absolutely nothing was demeaning and lowered self-esteem.
If we are expected to pay for other people’s mistakes we should at least attempt to make them learn from their bad choices. The current system rewards them for continuing to make bad choices.
AND While you are on Gov’t subsistence, you no longer can VOTE! Yes, that is correct. For you to vote would be a conflict of interest. You will voluntarily remove yourself from voting while you are receiving a Gov’t welfare check. If you want to vote, then get a job.
Wall Street iMoochers
Monday, October 17th, 2011Contrary to popular belief, many of my generation’s protesters didn’t know why they were protesting in the 60’s either. At least some thought they were protesting the war in Viet Nam, although that was only one aspect of a much larger picture. It was more about the largest demographic in the nation coming of age and flexing its new found political and social muscle to influence any kind of change. It was about pushing the envelope. Pushing the status quo.
LIBTARDS OF THE WEEK – THE UNWASHED WALL STREET IMOOCHER PROTESTERS, THIS ONE NAILS IT!
Thursday, October 17, 2011 The Circus Maximus of Useless Waste-oids is in full force on Wall Street. The Soros engineered, made-for-MSM tv event has recently gained strength by the called-up labor union thugs. The union thugs have plenty of time on their hands since their “leaders” have killed the goose that laid the golden egg that was once called US manufacturing. Now, the formerly overpaid wrench-turners can rub shoulders with Generation iMoocher idjits armed with iPhones, iPads and iPods from the iBank Accounts of their iParents. What an insult all these iMoochers are to Steve Jobs! He was a man of genius and production who worked and sacrificed to create products that made life more efficient and enjoyable.
This protest has created an unholy alliance of the unemployed union laborers that once worked for exorbitant, unsustainable wages and the Gen X moochers who are more than willing to do nothing in return for exorbitant, unsustainable welfare. Only in what was once America! What is laughable is none of the protesters really know what they’re protesting. They know it has to do with corporations, or banks, or the rich….or something….or somebody. That these unemployed, college graduates would join in cries to take wealth from the rich with a whale-like movie producer with a net worth of $50 million just adds to the entertainment!
This is a parade of life’s losers. Not the pull-yourself-up-by-the-bootstraps types of Americans who built wealth rather than expecting it.
These are the results of years of destruction of traditional American values. These kids grew up playing soccer where no team was allowed to lose, else someone’s feelings may be hurt. They were schooled on leftist doctrine that told them America was evil and corrupt. They were not allowed to fail or, again, their wittle self-esteems may be damaged. They were given cars, fine clothes, fancy electronics, etc. because their parents wanted them to have everything they didn’t have growing up. They went to expensive colleges and selected majors such as poetry and African-American Studies that have zero value in the real world. Now that they realize they are worthless bands of pathetic parasites, their only recourse is to steal more money from the dwindling producers in America.
These douche bag losers call themselves the 99%. They’re more like the 48% of Americans who have received some sort of government (i.e. taxpayer) benefits in the first quarter of 2010. While not 99%, they are still a significant percentage.
Who would ever thought that half of America would become moochers on the other half? The unwashed, middle-class, socialist brats who blocked the Brooklyn Bridge the other day certainly have no problem with the concept. They didn’t block themselves. They have nowhere to be. They blocked the working producers on their way home from work to care for their families. You know, responsibility. The welfare moochers blocked those who pay their welfare benefits! A simple “thank you” might have sufficed.
It’s the Economy Stupid
Monday, August 8th, 2011So, Obama and his left wing chorus want to blame the Tea Party for trying to inject an ounce of fiscal responsibility into the madness that he refers to as the budget deal.
Someone had to do it. Tea Party or the Whig Party, at some point, someone has to take a stand and start trying to reel in this leviathan of the sea.
All You Need To Know About Bank Balance-Sheet Fraud
Friday, April 29th, 2011All You Need To Know About Bank Balance-Sheet Fraud
The Market Ticker <http://market-ticker.denninger.net/>
Posted by Karl Denninger
<http://market-ticker.denninger.net/authors/2-Karl-Denninger>
I am constantly amused by those people who claim there is some vast “conspiracy” in this country when it comes to banks, balance sheets, and fraudulent lending and accounting. There is no conspiracy.
It is, in fact, “in your face” fraud.
The FDIC does us the courtesy of explaining it virtually every Friday night, right on their web page. <http://www.fdic.gov/news/news/press/2010/index.html>I am simply going to take last night’s bank closures, which numbered four. One of them has no “deposit insurance fund” estimated loss available, because they didn’t find someone to take the assets – they’re just mailing checks. But the other three do.Waterford Bank, Germantown MD <http://www.fdic.gov/news/news/press/2010/pr10045.html> : $155.6 million in assets, $156.4 in insured deposits. They were “underwater” by $800,000, right? Wrong: Estimated loss, $51 million. That is, the assets of $155.6 million were overvalued by approximately 30% at the time of seizure.Bank of Illinois, Normal IL <http://www.fdic.gov/news/news/press/2010/pr10044.html> : $211.7 million in assets, $198.5 million in deposits. They were “underwater” by $13.2 million (which is why they were seized), right? Wrong: Estimated loss $53.7 million. That is, the the assets of $211.7 million were overvalued by more than 25% at the time of seizure.Sun American Bank, Boca Raton FL <
http://www.fdic.gov/news/news/press/2010/pr10043.html> : $535.7 million in assets (so they claimed anyway), $443.5 million in total deposits. Heh, why did you seize them – they have more assets than liabilities? Oh wait: Estimated loss: $103.8 million, so the actual assets are worth $443.5 – $103.8, or $339.7 million. That is, the assets of $535.7 million were overvalued by a whopping 37% at the time of seizure.This isn’t new, by the way. In August of 2009 <http://market-ticker.denninger.net/archives/1352-We-Need-RTC-II-NOW.html> I went through Colonial Bank’s failure based on BB&T’s presentation to its shareholders on the “merger” – and gift it was given by the FDIC. It too showed that Colonial had been carrying assets on their books at a ridiculous 37% above where BB&T ultimately marked them as a whole.
Folks, your bank is being assessed deposit insurance premiums to pay for these losses. You are paying these losses through increased fees and interest expense on your credit cards and all other manner of borrowing.You are paying for outrageous, pernicious and endemic balance sheet fraud.
There is no conspiracy. It is right under your nose. One of these three banks, based on their balance sheet, wasn’t even underwater – it was “to the good” by nearly $100 million dollars.The balance sheet was a flat, bald-faced lie.
You want to sit for this?
Why should you?
Now let’s ask the inconvenient question:
Are the big banks – specifically, Citibank, Bank of America, Wells Fargo and JP Morgan – all similarly overvaluing their assets?
Why should we believe they are not? You can go through more than a year’s worth of FDIC bank seizure information and in essentially every single case you will find that overvaluations of somewhere from 20-50% have in fact occurred, yet not one indictment for book-cooking has issued.
So let’s be generous and assume that the “big banks” are over-valuing their assets by 25% – the lower end of the range of what the FDIC says is, through actual experience, what’s going on, and add it all up.
Bank of America <http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6877358-19747-27030&type=sect&dcn=0001193125-09-227720> shows $2.25 trillion in assets.
Citibank <http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6877451-520470-529580&type=sect&dcn=0001047469-09-009754> shows $1.89 trillion in assets.
JP Morgan/Chase <http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6879652-404464-409199&type=sect&dcn=0000950123-09-060099> shows $2.04 trillion in assets.
And Wells Fargo <http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6443748-615551-618684&type=sect&dcn=0000950134-09-003967> shows $1.31 trillion in assets.
This totals $7.49 trillion smackers.The FDIC’s experience with seizing banks thus far suggests quite strongly that all four of these entities are lying about these valuations, and that were they to be seized the loss embedded in them (and for which you, the taxpayer would be responsible) is somewhere between $1.49 and $2.99 trillion dollars.Incidentally, neither the FDIC or Treasury happens to have either $1.49 or $2.99 trillion laying around, and it is highly questionable if they could raise it, should that become necessary.
Now of course neither you or I can prove this is correct. However, we can look at the FDIC’s own published bank closing statements, and derive from them a pattern stretching back more than a year now that has disclosed that in essentially each and every case the banks in question have overvalued their assets by anywhere from 20-40%, and that as of the day of the seizure such an overvaluation was in fact a continuing and ongoing practice.
Back in the beginning of 2009 we had people argue that “mark to market” was invalid – that in fact the market-based pricing losses that were being claimed were ridiculous and would never happen. One of the claimants was the Federal Home Loan Bank of Seattle, which said that the $300 million in mark-to-market losses would not actually happen – that the real loss was only going to be $12 million dollars.
FHLB Seattle recently filed suit <http://market-ticker.denninger.net/archives/2005-Clap-Clap-Weil-and-The-Mark-To-Market-Scam.html> against the bundlers of this trash, claiming, surprise-surprise, that the real loss is not $12 million, not $300 million, but $311 million – on that bundle of trash alone. In all they are seeking $2 billion in damages.We have now learned, a year into this “experiment” with mark-to-model promulgated at gunpoint by Congress that:
The banks indeed have been lying about asset valuation and the proof comes in the form of the FDIC seizures, which in essentially case have documented massive and outrageous overvaluation of assets on bank balance sheets.The claimed “mark to model” losses, which were tiny compared to the market-price losses, were in fact fictions, to the point that the poster child of the “mark to model” argument is now suing the purveyors of the instruments supposedly not to be marked to the market for losses that exceed what the market-based loss was back in March of 2009.
If you wish to argue that the economy and banking system are recovering their health, you must deal with this. If indeed large bank balance sheets are concealing a deficiency of somewhere between $1.5 and $3 trillion in losses not only will the economy and lending environment not recover it can’t as the large banks all know the truth.
I believe this is why those very same banks are hoarding cash. I believe they know that at some point in the future – a point not under their control – the truth may come out and if it does an instantaneous run would occur – not just on their bank, but on all banks. Such an event could be defended against only with a huge cash hoard – a hoard that, if they lend out said cash, would not be available to them.
The Federal Reserve knows this too. I believe this is why there is nearly $1 trillion of “excess reserves” sitting at The Fed <http://research.stlouisfed.org/fred2/series/NFORBRES> , up from nearly zero prior to the crisis – it is these large banks’ “backstop” against a potential run should the truth of their balance sheets reach public conscience.The political and regulatory bottom line is simple: As I have repeatedly maintained for nearly three years, we now have the facts from our own government agencies, most particularly the FDIC: The banks have been and still are cooking their books in a manner that intentionally overstates their asset valuations – an act that is exactly identical to that which brought down ENRON.
Something is Rotten at BP
Sunday, December 12th, 2010Why is the BP claims process so prejudiced against real estate agents?
The BP claims process is flawed at its core. You could throw a stone in any direction here on the Emerald Coast and hit someone that has made a significant windfall from the BP claims office. Waiters, waitresses, bartenders, busboys, dishwashers, air brush artists, massage therapists, fast food managers and owners far removed from the impact of tourism are cleaning up!
Yes, many fast food workers who were in no way impacted by tourism, whose pay has not suffered whatsoever are receiving checks in amounts that far exceed that which they requested! Food service employees making $20,000 or so per year are raking in checks to the tune of $15,000 and more. Some, much more!
So what about real estate agents and their companies who have suffered losses as a result of BP’s “incident”? A full-time real estate agent cannot be paid more than $12,000 through the BP claims service. One agent had a number of large contracts fall out due to buyer’s fear of the oil spill consequences and could document a loss of more than $65,000. What was this agent told? “Tough! $12,000 is the cap.
Okay, so why can vacation management companies receive checks in the $100,000 range (several received more than $1 million), busboys up to $20,000 and real estate firms and/or agents be capped at $12,000?
Is there an agenda? Is Feinberg following orders from a higher power? The Obama administration has demonstrated a clear and distinct prejudice against those employed in financial related industries, real estate included. There is also a perception that those in the financial services industries are conservative. Is there some correlation?
Senators and Congressmen need to intervene. There needs to be some call-to-action! Elected officials should seek to determine why this bias exists and see it corrected.
How Bad is the Economy?
Thursday, October 28th, 2010How bad is the economy?
The economy is SO bad that ….
I got a pre-declined credit card in the mail.
I ordered a burger at McDonald’s and the kid behind the counter asked, “Can you afford fries with that?”
CEO’s are now playing miniature golf.
If the bank returns your check marked “Insufficient Funds,” you call them and ask if they meant you or them.
Exxon-Mobil laid off 25 Congressmen.
Hot Wheels and Matchbox stocks are trading higher than GM.
McDonald’s is selling the 1/4 ouncer.
Parents in Beverly Hills fired their nannies and learned their children’s names.
A truckload of Americans was caught sneaking into Mexico.
Motel Six won’t leave the light on anymore.
The Mafia is laying off judges.
When Congress said that they were looking into that Bernie Madoff scandal I remember thinking, OH GREAT!! The guy who made $50 Billion disappear is being investigated by the people who made $1.5 Trillion disappear!
And, finally…
I was so depressed last night thinking about the economy, wars, jobs, my savings, Social Security, retirement funds, etc., I called the Suicide Lifeline. I got a call center in Pakistan , and when I told them I was suicidal, they got all excited, and asked if I could drive a truck.
All You Need To Know About Bank Balance-Sheet Fraud
Monday, March 8th, 2010All You Need To Know About Bank Balance-Sheet Fraud
There is no conspiracy. It is, in fact, “in your face” fraud. The FDIC does us the courtesy of explaining it virtually every Friday night, right on their web page. I am simply going to take last night’s bank closures, which numbered four. One of them has no “deposit insurance fund” estimated loss available, because they didn’t find someone to take the assets – they’re just mailing checks. But the other three do.
Waterford Bank, Germantown MD: $155.6 million in assets, $156.4 in insured deposits. They were “underwater” by $800,000, right? Wrong: Estimated loss, $51 million. That is, the assets of $155.6 million were overvalued by approximately 30% at the time of seizure. Bank of Illinois, Normal IL: $211.7 million in assets, $198.5 million in deposits. They were “underwater” by $13.2 million (which is why they were seized), right? Wrong: Estimated loss $53.7 million. That is, the the assets of $211.7 million were overvalued by more than 25% at the time of seizure. Sun American Bank, Boca Raton FL: $535.7 million in assets (so they claimed anyway), $443.5 million in total deposits. Heh, why did you seize them – they have more assets than liabilities? Oh wait: Estimated loss: $103.8 million, so the actual assets are worth $443.5 – $103.8, or $339.7 million. That is, the assets of $535.7 million were overvalued by a whopping 37% at the time of seizure. This isn’t new, by the way. In August of 2009 I went through Colonial Bank’s failure based on BB&T’s presentation to its shareholders on the “merger” – and gift it was given by the FDIC. It too showed that Colonial had been carrying assets on their books at a ridiculous 37% above where BB&T ultimately marked them as a whole. Folks, your bank is being assessed deposit insurance premiums to pay for these losses. You are paying these losses through increased fees and interest expense on your credit cards and all other manner of borrowing.
You are paying for outrageous, pernicious and endemic balance sheet fraud. There is no conspiracy. It is right under your nose. One of these three banks, based on their balance sheet, wasn’t even underwater – it was “to the good” by nearly $100 million dollars.
The balance sheet was a flat, bald-faced lie. You want to sit for this? Why should you? Now let’s ask the inconvenient question:
Are the big banks – specifically, Citibank, Bank of America, Wells Fargo and JP Morgan – all similarly overvaluing their assets? Why should we believe they are not? You can go through more than a year’s worth of FDIC bank seizure information and in essentially every single case you will find that overvaluations of somewhere from 20-50% have in fact occurred, yet not one indictment for book-cooking has issued. So let’s be generous and assume that the “big banks” are over-valuing their assets by 25% – the lower end of the range of what the FDIC says is, through actual experience, what’s going on, and add it all up. Bank of America shows $2.25 trillion in assets. Citibank shows $1.89 trillion in assets. JP Morgan/Chase shows $2.04 trillion in assets. And Wells Fargo shows $1.31 trillion in assets. This totals $7.49 trillion smackers. The FDIC’s experience with seizing banks thus far suggests quite strongly that all four of these entities are lying about these valuations, and that were they to be seized the loss embedded in them (and for which you, the taxpayer would be responsible) is somewhere between $1.49 and $2.99 trillion dollars.
Incidentally, neither the FDIC or Treasury happens to have either $1.49 or $2.99 trillion laying around, and it is highly questionable if they could raise it, should that become necessary. Now of course neither you or I can prove this is correct. However, we can look at the FDIC’s own published bank closing statements, and derive from them a pattern stretching back more than a year now that has disclosed that in essentially each and every case the banks in question have overvalued their assets by anywhere from 20-40%, and that as of the day of the seizure such an overvaluation was in fact a continuing and ongoing practice. Back in the beginning of 2009 we had people argue that “mark to market” was invalid – that in fact the market-based pricing losses that were being claimed were ridiculous and would never happen. One of the claimants was the Federal Home Loan Bank of Seattle, which said that the $300 million in mark-to-market losses would not actually happen – that the real loss was only going to be $12 million dollars. FHLB Seattle recently filed suit against the bundlers of this trash, claiming, surprise-surprise, that the real loss is not $12 million, not $300 million, but $311 million – on that bundle of trash alone. In all they are seeking $2 billion in damages. We have now learned, a year into this “experiment” with mark-to-model promulgated at gunpoint by Congress that: The banks indeed have been lying about asset valuation and the proof comes in the form of the FDIC seizures, which in essentially case have documented massive and outrageous overvaluation of assets on bank balance sheets. The claimed “mark to model” losses, which were tiny compared to the market-price losses, were in fact fictions, to the point that the poster child of the “mark to model” argument is now suing the purveyors of the instruments supposedly not to be marked to the market for losses that exceed what the market-based loss was back in March of 2009. If you wish to argue that the economy and banking system are recovering their health, you must deal with this. If indeed large bank balance sheets are concealing a deficiency of somewhere between $1.5 and $3 trillion in losses not only will the economy and lending environment not recover it can’t as the large banks all know the truth. I believe this is why those very same banks are hoarding cash. I believe they know that at some point in the future – a point not under their control – the truth may come out and if it does an instantaneous run would occur – not just on their bank, but on all banks. Such an event could be defended against only with a huge cash hoard – a hoard that, if they lend out said cash, would not be available to them. The Federal Reserve knows this too. I believe this is why there is nearly $1 trillion of “excess reserves” sitting at The Fed, up from nearly zero prior to the crisis – it is these large banks’ “backstop” against a potential run should the truth of their balance sheets reach public conscience. The political and regulatory bottom line is simple: As I have repeatedly maintained for nearly three years, we now have the facts from our own government agencies, most particularly the FDIC: The banks have been and still are cooking their books in a manner that intentionally overstates their asset valuations – an act that is exactly identical to that which brought down ENRON. |
Pharaoh vs Obama
Friday, June 19th, 2009This is said to be a Sermon from a church in Virginia recently. Gen 47: 13-27 … Maybe it is, and maybe it’s not. The message is true enough either way:
Good morning, brothers and sisters; it’s always a delight to see the pews crowded on Sunday morning, and so eager to get into God’s Word.. Turn with me in your Bibles, if you will, to the 47th chapter of Genesis; we’ll begin our reading at verse 13, and go through verse 27.
Brother Ray, would you stand and read that great passage for us?… Thank you for that fine reading, Brother Ray.. So we see that economic hard times fell upon Egypt , and the people turned to the government of Pharaoh to deal with this for them. And Pharaoh nationalized the grain harvest, and placed the grain in 20 great storehouses that he had built. So the people brought their money to Pharaoh, like a great tax increase, and gave it all to him willingly in return for grain. And this went on until their money ran out, and they were hungry again.
So when they went to Pharaoh after that, they brought their livestock – their cattle, their horses, their sheep, and their donkey – to barter for grain, and verse 17 says that only took them through the end of that year.
But the famine wasn’t over, was it?
So the next year, the people came before Pharaoh and admitted they had nothing left, except their land and their own lives. “There is nothing left in the sight of my lord but our bodies and our land. Why should we die before your eyes, both we and our land? Buy us and our land for food, and we with our land will be servants to Pharaoh.” So they surrendered their homes, their land, and their real estate to Pharaoh’s government, and then sold themselves into slavery to him, in return for grain.
What can we learn from this, brothers and sisters?
That turning to the government instead of to God to be our provider in hard times only leads to slavery? Yes. That the only reason government wants to be our provider is to also become our master? Yes.
But look how that passage ends, brothers and sisters! Thus Israel settled in the land of Egypt , in the land of Goshen . And they gained possessions in it, and were fruitful and multiplied greatly.” God provided for His people, just as He always has! They didn’t end up giving all their possessions to the government, no, it says they gained possessions!
But I also tell you a great truth today, and an ominous one. We see the same thing happening today – the government today wants to “share the wealth” once again, to take it from us and redistribute it back to us. It wants to take control of healthcare, just as it has taken control of education, and ration it back to us, and when government rations it, then government decides who gets it, and how much, and what kind.
And if we go along with it, and do it willingly, then we will wind up no differently than the people of Egypt did four thousand years ago – as slaves t o the government, and as slaves to our leaders.
What Mr. Obama’s government is doing now is no different from what Pharaoh’s government did then, and it will end the same… And a lot of people like to call Mr. Obama a “Messiah,” don’t they? Is he a Messiah? A savior? Didn’t the Egyptians say, after Pharaoh made them his slaves, “You have saved our lives; may it please my lord, we will be servants to Pharaoh”?
Well, I tell you this – I know the Messiah; the Messiah is a friend of mine; and Mr. Obama is no Messiah! No, brothers and sisters, if Mr. Obama is a character from the Bible, then he is Pharaoh.
Bow with me in prayer, if you will.
Lord, You alone are worthy to be served, and we rely on You, and You alone. We confess that the government is not our deliverer, and never rightly will be. We read in the eighth chapter of 1 Samuel, when Samuel warned the people of what a ruler would do, where it says “And in that day you will cry out because of your king, whom you have chosen for yourselves, but the LORD will not answer you in that day.” And Lord, we acknowledge that day has come. We cry out to you because of the ruler that we have chosen for ourselves as a nation. Lord, we pray for this nation. We pray for revival, and we pray for deliverance from those who would be our masters.
Give us hearts to seek You and hands to serve You, and protect Your people from the atrocities of Pharaoh’s government.