We The Sheeplez- The Coming Economic Collapse.."A Nation Of Sheep Ruled By Wolves" Thomas Jefferson

Tuesday, July 19, 2011

Obama To Make Statement At 1:30 PM EDT On Debt Talks

Sure enough, within hours of the rumored Senate "deal" on the Chained CPI which will magically whack off $500 billion from the deficit, here comes the president to address the debt talks, most likely praising Senate for reaching a consensus, and spinning it as a $3.7 billion grand compromise which in reality is nothing but even more plundering from not only the future, but from those who are most reliant on COLA adjustments to keep up with real CPI. Watch it live below.

Presenting The Complete Generic Fluff That Is The "Gang of Six Plan To Reduce Our Nation's Deficit"

Well it's not a 3 page term sheet. It is a 5 page talking point bulletin full of ridiculous fluff with nothing substantial.

Senate Nears Debt Ceiling Consensus Which Demands Change In CPI Definition

Politico reports that the latest development in the constantly changing and oh so theatric "struggle" to find a compromise on how to raise the debt ceiling by $2.5 trillion, is one which will not only not do anything to fix the deficit situation but will in fact set America back, as a key part of the "savings" will come precisely from the same change in the definition of inflation courtesy of the Chained CPI introduction, which the democrats previously blasted, and for good reason: because it will be an implicit theft from Social Security. Recall that the last time this was proposed the AARP started foaming in the mouth within minutes. The broad strokes of the plan are as follows: "The once moribund Senate “Gang of Six” regained new life Tuesday after Oklahoma Sen. Tom Coburn unexpectedly rejoined the group — and more senators are now coalescing around a new proposal that would cut the debt by as much as $3.7 trillion over the next decade. According to a copy of the plan, obtained by POLITICO, the group would impose a two-step legislative process that would make $500 billion worth of cuts immediately followed by a second bill to create a “fast-track process” that would propose a comprehensive bill aimed at dramatically restructuring tax and spending programs. The plan calls for changes to Social Security to move on a separate track, and establishes an elaborate procedure for considering the measures on the floor." And here is the kicker: "The $500 billion in cuts would come from a range of sources, including shifting to a new consumer price index to make cost-of-living adjustments to Social Security." Care to wager what the bulk of this $500 billion will come from: that's right - social security, whose deliverable obligations will plunge as suddenly the inflation variable in the actuarial calculation will very mysteriously be cut courtesy of Senate-endorsed theft.

Hyperinflation to devalue debt is pols' only way out, Embry says

Guest Post: Summarizing Bank Earnings With Two Charts

Now that the big banks have reported below are two charts that sum up how they are doing aside from the noise of "beating expectations."

Bank of America Selloff Accelerating On Heavy Volume

There is no joy in the top floor of 1251 Avenue of the Americas, where the P&L associated with a once mega profitable BAC position has dwindled to nothing. Following our earlier assessment that Bank of America reported yet another miserable quarter, the market has also caught on with the pure ugliness oozing form this report, and has punished the stock by sending it to multi year lows, at last check tumbling to $9.45 on heavy volume. There are still about 30 cents left until Paulson is completely underwater based on his cost basis. Which of course is completely irrelevant in the hedge fund world where only day to day P&L is relevant.

How Greece Could Create Another Round of Systemic Risk Pt 1

Posted by: Phoenix Capital Research

Post date: 07/19/2011 - 12:04

Greece is NOT the big problem for the EU. However, worldwide exposure to Greek debt is in the ballpark of $277 billion. So a default there would result in significant market dislocations. Now consider the exposure to a BIG Problem such as Spanish debt. In this situation, Great Britain is on the hook for $51 billion. The US is on the hook for $187 billion. France is on the hook for $224 billion. And Germany is on the hook for a whopping $244 billion.

Reuters and The Associated Press Drop Bombs On the Banks: "Robo-signing is not even close to over"

Posted by: 4closureFraud

Post date: 07/19/2011 - 12:17

Most of the tainted mortgage documents in question last fall were related to homes in foreclosure. But much of the suspect paperwork that has been filed since then is for refinancing or for new purchases by people who are in good standing in the eyes of the bank.