Wells Fargo study finds that 25% of homeowners have No Savings to pay mortgage if laid off! Layoffs maintaining 7 Million annual rate.
Already, 1 in 3 homeowners have family or friends living with them! This is happening faster than I anticipated. The days of the 5 bedroom, 4 bath single family, occupied by one family are gone!
You will see more people renting bedrooms and you will see families pooling resources to buy homes.
The arrival of the New Reality!
Monday, May 25, 2009
Monday, May 18, 2009
Update on the Life Insurance Companies
5-18-09
Dan Ferris, S&A Digest
Yesterday, the government announced it would expand bailout efforts to include insurance companies, earmarking some of the $130 billion in remaining TARP funds to boost confidence in the sector
The reality is that the government can't possibly bail out 18% of the corporate bond market, the entire stock market, and a big chunk of the commercial real estate sector, (the total of the life insurer's asset reserves) not even if it spent 100% of the remaining $130 billion of TARP money on life insurers, which is highly unlikely.
According to a recent report by Bridgewater Associates, between ratings downgrades and actual losses, the 13 largest publicly traded U.S. life insurance companies would need about another $400 billion just to stay afloat. But what if that's not enough? Everything the government has spent so far hasn't been enough to fix anything.
It's a legitimate question, whether losses will be taken by the insurance companies, their investors, and their clients (which is what ought to happen) or whether they'll be taken by the taxpayers (which would be a real crime). I don't see how the government could put it on the taxpayer without risking hyperinflation. It would have to print trillions, which it has done already to no avail.
5-20-09
Wall st Journal says Met Life, one of the largest life insurers, has direct exposure to $36 Bil in commercial real estate. It has tangible equity of $19 Bil. If its commercial real estate investments incur a 25% loss, half of its tangible equity will be wiped out! This may trigger demands from state regulators to replace the loss capital at a time when its stocks will have been hard hit by the loss of its equity! This could set off a Run on the company as panicked policy holders seek to draw out as much of their cash as possible, as quickly as possible.
Insurance companies are in big danger because of their exposure not only to commercial real estate, where various estimated call for a default rate of 30% in $700 Bil worth of CRMBS, Commercial Mortgage Backed Securities, but also to variable annuities where they have guaranteed annuity holders a return of the S&P or better.
Corporate bonds, another "safe" investment for insurance companies, where default rates as high as 10% have been forecast, are yet another troubled area for life insurers.
It is very likely, according to my research that we will see the failure or insolvency of several of the biggest life insurance companies in the world.
What would happen if your life insurance carrier collapsed? http://silverpros.blogspot.com/2009/04/what-would-happen-if-your-life.html
Dan Ferris, S&A Digest
Yesterday, the government announced it would expand bailout efforts to include insurance companies, earmarking some of the $130 billion in remaining TARP funds to boost confidence in the sector
The reality is that the government can't possibly bail out 18% of the corporate bond market, the entire stock market, and a big chunk of the commercial real estate sector, (the total of the life insurer's asset reserves) not even if it spent 100% of the remaining $130 billion of TARP money on life insurers, which is highly unlikely.
According to a recent report by Bridgewater Associates, between ratings downgrades and actual losses, the 13 largest publicly traded U.S. life insurance companies would need about another $400 billion just to stay afloat. But what if that's not enough? Everything the government has spent so far hasn't been enough to fix anything.
It's a legitimate question, whether losses will be taken by the insurance companies, their investors, and their clients (which is what ought to happen) or whether they'll be taken by the taxpayers (which would be a real crime). I don't see how the government could put it on the taxpayer without risking hyperinflation. It would have to print trillions, which it has done already to no avail.
5-20-09
Wall st Journal says Met Life, one of the largest life insurers, has direct exposure to $36 Bil in commercial real estate. It has tangible equity of $19 Bil. If its commercial real estate investments incur a 25% loss, half of its tangible equity will be wiped out! This may trigger demands from state regulators to replace the loss capital at a time when its stocks will have been hard hit by the loss of its equity! This could set off a Run on the company as panicked policy holders seek to draw out as much of their cash as possible, as quickly as possible.
Insurance companies are in big danger because of their exposure not only to commercial real estate, where various estimated call for a default rate of 30% in $700 Bil worth of CRMBS, Commercial Mortgage Backed Securities, but also to variable annuities where they have guaranteed annuity holders a return of the S&P or better.
Corporate bonds, another "safe" investment for insurance companies, where default rates as high as 10% have been forecast, are yet another troubled area for life insurers.
It is very likely, according to my research that we will see the failure or insolvency of several of the biggest life insurance companies in the world.
What would happen if your life insurance carrier collapsed? http://silverpros.blogspot.com/2009/04/what-would-happen-if-your-life.html
Friday, May 15, 2009
The Standard American DIEt, Profits for the Bankers-Death For You!
Bear with me on this, I know it starts a little weird. I just read a review of the book, The Defense of Food by Michael Pollan, a Professor of Science and Investigative Journalism at UC Berkely. Here are my comments and observations.
The International Bankers who control this country and exploit all of us through their ownership and control of the Federal Reserve Bank and therefore of all of our money; finance the production and promotion of the American DIE-t and profit handsomely from the massive health care disaster it produces.
Diabetes causes (such as corporate control of food, transportation and culture, rampant inequality, weakened communities, and excessive materialism) are among the causes sickening the world.
The DIE-t, like all other aspects of the American (bankers’s) Dream, is designed to suck as much money from American citizens as possible.
You can get a very good picture of how the Banker-financed food industry uses science to get us actually addicted to their unhealthy, processed food in a new book, "The End of Overeating" by David Kessler, former Surgeon General of the US.
First the bankers make huge profits by funding the corporations which produce the “edible food-like substances,” (love that characterization!) that line our supermarket shelves. Over 94% of the food advertising budget is spent on advertising those highly processed foods. They are much more profitable than the healthy foods you will generally find in the produce department. When is the last time you saw a cabbage commercial?
Inexorably, a lifetime of consumption of these dangerous foods lead to a condition called Metabolic Syndrome. At this point, the Bankers switch hats and make another Huge Fortune by treating the diseases they produce!
Remember, all of America's institutions intersect at the bank!
Metabolic Syndrome is a medical term to describe the precursor of most of the chronic diseases we associate with aging and failing health:
• High blood pressure
• Heart Disease
• Type 2 Diabetes
• Cancers
Metabolic Syndrome has been directly tied to the American DIE-t and the resulting illnesses cost a fortune to treat as Michael so aptly points out.
If we include the impact of smoking and alcohol, also funded by the Bankers, treatment for these diseases account for approximately $1.5 Trillion or 3/4 of every health care dollar, according to Michael.
This insidious cycle of diet and disease is music to the Banker's ears since they also finance and therefore control, the nation's health care system.
This discussion just reinforces my assertion that the International Bankers control and profit from All aspects of our economy, even the food we eat, which coincidently, leads to expensive long term disease treatments.
For more information, check out my radio broadcast, next Tuesday, May 19th at 12 Noon, here: http://MyMoneyShow.com if you have missed it, you can listen to the recording after the show airs.
Learn more about the health risks of continuing to eat this deadly fare and what you can do about preventing and reversing the otherwise inevitable consequences on my other blog, http://Diabetic-Test-Strips.Blogspot.com
The International Bankers who control this country and exploit all of us through their ownership and control of the Federal Reserve Bank and therefore of all of our money; finance the production and promotion of the American DIE-t and profit handsomely from the massive health care disaster it produces.
Diabetes causes (such as corporate control of food, transportation and culture, rampant inequality, weakened communities, and excessive materialism) are among the causes sickening the world.
The DIE-t, like all other aspects of the American (bankers’s) Dream, is designed to suck as much money from American citizens as possible.
You can get a very good picture of how the Banker-financed food industry uses science to get us actually addicted to their unhealthy, processed food in a new book, "The End of Overeating" by David Kessler, former Surgeon General of the US.
First the bankers make huge profits by funding the corporations which produce the “edible food-like substances,” (love that characterization!) that line our supermarket shelves. Over 94% of the food advertising budget is spent on advertising those highly processed foods. They are much more profitable than the healthy foods you will generally find in the produce department. When is the last time you saw a cabbage commercial?
Inexorably, a lifetime of consumption of these dangerous foods lead to a condition called Metabolic Syndrome. At this point, the Bankers switch hats and make another Huge Fortune by treating the diseases they produce!
Remember, all of America's institutions intersect at the bank!
Metabolic Syndrome is a medical term to describe the precursor of most of the chronic diseases we associate with aging and failing health:
• High blood pressure
• Heart Disease
• Type 2 Diabetes
• Cancers
Metabolic Syndrome has been directly tied to the American DIE-t and the resulting illnesses cost a fortune to treat as Michael so aptly points out.
If we include the impact of smoking and alcohol, also funded by the Bankers, treatment for these diseases account for approximately $1.5 Trillion or 3/4 of every health care dollar, according to Michael.
This insidious cycle of diet and disease is music to the Banker's ears since they also finance and therefore control, the nation's health care system.
This discussion just reinforces my assertion that the International Bankers control and profit from All aspects of our economy, even the food we eat, which coincidently, leads to expensive long term disease treatments.
For more information, check out my radio broadcast, next Tuesday, May 19th at 12 Noon, here: http://MyMoneyShow.com if you have missed it, you can listen to the recording after the show airs.
Learn more about the health risks of continuing to eat this deadly fare and what you can do about preventing and reversing the otherwise inevitable consequences on my other blog, http://Diabetic-Test-Strips.Blogspot.com
Saturday, May 9, 2009
If You Were Planning a Dive to 1500 ft in a Sub, Would You Accept One Rated to 1,000 ft?
Well then you would not accept the bank's stress test results either. Did you know the institution administering the "Stress Test" are the banks themselves? Many were allowed to "Modify" the stress applied to themselves!
Their "Worst Case Scenarios" used as the benchmarks, such as unemployment hitting 8.9% are already upon us, with no real end of the economic Tsunami in sight.
Just more Government Bullshit!
Their "Worst Case Scenarios" used as the benchmarks, such as unemployment hitting 8.9% are already upon us, with no real end of the economic Tsunami in sight.
Just more Government Bullshit!
Bankers Caught Planning a Depression!
American Bankers Association memo, 1891
"We are authorizing our member banks from the Western States to loan on properties, monies repayable by September 1st, 1894. On Sept, 1, 1894, we will not renew our loans under any consideration.
On Sept. 1st we will demand our money. We will foreclose and become mortgagees in possession. We can take two-thirds of the farms west of the Mississippi, and thousands of them east of the Mississippi as well, at our own price... We may as well own three-fourths of the farms of the West and the money of the country. Then the farmers will become tenants as in England ..." -- 1891, American Bankers Association, as printed in the Congressional Record of the United States April 29, 1913
There's More:
As seen above, banksters have actually been caught boasting about their abilities to cause recessions and depressions and how they can steal property from borrower-citizens. This criminal racketeering has been going on for generations and is embodied today by the depredations of the privately owned US Federal Reserve Bank.
The private issuance of a nation’s money has given tremendous power to central bankers, a power so great that even democratically elected governments are subservient to them as the US government is today. The US Government is not in control of the economy; it is the all-powerful Federal Reserve Bank who create the money, determine interest rates, and decide who gets loans and who doesn’t. Republican Ron Paul says the Fed is more powerful than Congress and the President has no control over the Fed.
Thomas Jefferson, keenly aware of the dictatorial power of private central banks, was instrumental in having Congress decline to renew of the charter of the First Bank of the United States in 1811.
The Super Rich banker, Nathan Rothschild, operating from London in 1811, threatened the young United States with war and financial disaster if the bank’s charter were not renewed. The charter was not renewed and, sure enough, the United States soon found itself embroiled in the War of 1812, with all its attendant loss of life and financial difficulties.
Such is the alarming supremacy of rapacious international banksters. In fact, Nathan's father, the founder and patriarch of the Rothschild financial dynasty, said, "I care not who makes the laws of a nation, as long as I issue and control its money!" To this day, the Rothchilds continue to dominate the central banks of the world, including an ownership interest in the US Federal Reserve Bank.
Getting back to our history, to restore financial normality, President Madison granted a 20 year charter to a new central bank in 1816, the privately owned Second Bank of the United States. But then, in 1828, along came another president who shared Jefferson’s great distrust and opprobrium for central banks and banksters, one Andrew Jackson, a former army general known affectionately as ‘Old Hickory’, a national hero of the War of 1812.
Jackson refused to renew the charter of the Second Bank of the United States, even vetoing Congress who had approved its renewal. Nicholas Biddle, president of the bank, threatened Jackson that he would inflict a recession on the country if the president did not lift his veto on the charter renewal. Jackson still refused. Biddle, true to his word, called in bank loans and refused to issue new loans. The supply of money in the United States shrank dramatically, precipitating a recession.
Soon, Biddle’s engineered recession enveloped the whole country. Businesses failed and unemployment rose. But ‘Old Hickory’ would not surrender to the banksters, even after a would-be assassin, an Englishman called Richard Lawrence, attempted to murder him in January, 1835.
Both the assassin’s pistols misfired and legend has it that ‘Old Hickory’ then proceeded to thrash the man with his cane until restrained by his own aides. Jackson himself blamed the Rothschilds for the attempt on his life. In any case, the determined Jackson prevailed over the bank and its charter wasn’t renewed; it would be some 77 years before the central banksters could finagle another privately controlled central bank with the establishment of the Federal Reserve in 1913.
Later, in 1934, elements connected to the Federal Reserve had Congressman and Chairman of the Congressional Committee, Louis T. McFadden, (R-Pa) assassinated for his fierce and unyielding opposition to the Fed. He called the Fed, “one of the most corrupt institutions the world has ever known,” In 1933, McFadden introduced House Resolution No. 158, Articles of Impeachment for the Feds Board of Governors, the 12 Regional Federal Reserve Presidents among others. McFadden was a former bank president and knew how the rigged game was played.
"Whosoever controls the volume of money in any country is absolute master of all industry and commerce in that country. And when you realize that the entire system is very easily controlled one way or another by a very few powerful men at the top, you will not have to be told how periods of inflation and depression originate. President James Garfield, Assasinated, July 2, 1881
r
For details on the formation and ownership of the Fed and the banker's plans to reduce American Citizens to serfs or peons, see Edward Griffin's "The Creature From Jekyl Island"
"We are authorizing our member banks from the Western States to loan on properties, monies repayable by September 1st, 1894. On Sept, 1, 1894, we will not renew our loans under any consideration.
On Sept. 1st we will demand our money. We will foreclose and become mortgagees in possession. We can take two-thirds of the farms west of the Mississippi, and thousands of them east of the Mississippi as well, at our own price... We may as well own three-fourths of the farms of the West and the money of the country. Then the farmers will become tenants as in England ..." -- 1891, American Bankers Association, as printed in the Congressional Record of the United States April 29, 1913
There's More:
As seen above, banksters have actually been caught boasting about their abilities to cause recessions and depressions and how they can steal property from borrower-citizens. This criminal racketeering has been going on for generations and is embodied today by the depredations of the privately owned US Federal Reserve Bank.
The private issuance of a nation’s money has given tremendous power to central bankers, a power so great that even democratically elected governments are subservient to them as the US government is today. The US Government is not in control of the economy; it is the all-powerful Federal Reserve Bank who create the money, determine interest rates, and decide who gets loans and who doesn’t. Republican Ron Paul says the Fed is more powerful than Congress and the President has no control over the Fed.
Thomas Jefferson, keenly aware of the dictatorial power of private central banks, was instrumental in having Congress decline to renew of the charter of the First Bank of the United States in 1811.
The Super Rich banker, Nathan Rothschild, operating from London in 1811, threatened the young United States with war and financial disaster if the bank’s charter were not renewed. The charter was not renewed and, sure enough, the United States soon found itself embroiled in the War of 1812, with all its attendant loss of life and financial difficulties.
Such is the alarming supremacy of rapacious international banksters. In fact, Nathan's father, the founder and patriarch of the Rothschild financial dynasty, said, "I care not who makes the laws of a nation, as long as I issue and control its money!" To this day, the Rothchilds continue to dominate the central banks of the world, including an ownership interest in the US Federal Reserve Bank.
Getting back to our history, to restore financial normality, President Madison granted a 20 year charter to a new central bank in 1816, the privately owned Second Bank of the United States. But then, in 1828, along came another president who shared Jefferson’s great distrust and opprobrium for central banks and banksters, one Andrew Jackson, a former army general known affectionately as ‘Old Hickory’, a national hero of the War of 1812.
Jackson refused to renew the charter of the Second Bank of the United States, even vetoing Congress who had approved its renewal. Nicholas Biddle, president of the bank, threatened Jackson that he would inflict a recession on the country if the president did not lift his veto on the charter renewal. Jackson still refused. Biddle, true to his word, called in bank loans and refused to issue new loans. The supply of money in the United States shrank dramatically, precipitating a recession.
Soon, Biddle’s engineered recession enveloped the whole country. Businesses failed and unemployment rose. But ‘Old Hickory’ would not surrender to the banksters, even after a would-be assassin, an Englishman called Richard Lawrence, attempted to murder him in January, 1835.
Both the assassin’s pistols misfired and legend has it that ‘Old Hickory’ then proceeded to thrash the man with his cane until restrained by his own aides. Jackson himself blamed the Rothschilds for the attempt on his life. In any case, the determined Jackson prevailed over the bank and its charter wasn’t renewed; it would be some 77 years before the central banksters could finagle another privately controlled central bank with the establishment of the Federal Reserve in 1913.
Later, in 1934, elements connected to the Federal Reserve had Congressman and Chairman of the Congressional Committee, Louis T. McFadden, (R-Pa) assassinated for his fierce and unyielding opposition to the Fed. He called the Fed, “one of the most corrupt institutions the world has ever known,” In 1933, McFadden introduced House Resolution No. 158, Articles of Impeachment for the Feds Board of Governors, the 12 Regional Federal Reserve Presidents among others. McFadden was a former bank president and knew how the rigged game was played.
"Whosoever controls the volume of money in any country is absolute master of all industry and commerce in that country. And when you realize that the entire system is very easily controlled one way or another by a very few powerful men at the top, you will not have to be told how periods of inflation and depression originate. President James Garfield, Assasinated, July 2, 1881
r
For details on the formation and ownership of the Fed and the banker's plans to reduce American Citizens to serfs or peons, see Edward Griffin's "The Creature From Jekyl Island"
Friday, May 8, 2009
20% of Homes Underwater? Think Again!
Zillow.com the real estate industry's barometer of home prices, today reported that 21.8% of all homes in the US are "Underwater." That means that the house is worth less than the mortgage. That amounts to about 20 million homes.
The facts are worse than the news. If 20 Million is 21.8% of all homes, there are approximately 100 million homes in the US. However, 1/3 of them do not have a mortgage. Therefore, 20 million means that actually 1/3 of all homes with mortgages are underwater!
Think of that. What does that mean for the housing market, the banks, the economy?
A sizable number of those homes will be lost to foreclosure. What incentive does a homeowner have to keep up with his payments if an emergency comes up? Will they pay their mortgage or their doctor bill, or their exploding credit card bills, etc.
This means a continued increase in the amount of homes foreclosed on and a continued drop in prices as those foreclosed homes are dumped on the market at fire-sale prices.
Typically, regional bank reserves are about 50% in home mortgages. If 1/3 of them are underwater, what does that do to the value of the bank reserves? For every $1 loss in reserves, the bank will have to cut $10 in lending, adding to the drying up of credit.
How about the big, money center banks sitting there with Trillions in housing derivatives? "Normally" losses of 1-3% in the value of the mortgages underlying the security is projected. What happens to the value of the security when those losses approach 30%? Again, the value of the reserves is dramatically slashed, further choking off credit.
Unfortunately, we are in worse condition than the mainstream media and the government wants you to believe.
If you want to learn more about the reality of our situation and what you can do to protect yourself and your family from economic ruin, read the other posts in this blog.
Bill Young, 646-961-3818
The facts are worse than the news. If 20 Million is 21.8% of all homes, there are approximately 100 million homes in the US. However, 1/3 of them do not have a mortgage. Therefore, 20 million means that actually 1/3 of all homes with mortgages are underwater!
Think of that. What does that mean for the housing market, the banks, the economy?
A sizable number of those homes will be lost to foreclosure. What incentive does a homeowner have to keep up with his payments if an emergency comes up? Will they pay their mortgage or their doctor bill, or their exploding credit card bills, etc.
This means a continued increase in the amount of homes foreclosed on and a continued drop in prices as those foreclosed homes are dumped on the market at fire-sale prices.
Typically, regional bank reserves are about 50% in home mortgages. If 1/3 of them are underwater, what does that do to the value of the bank reserves? For every $1 loss in reserves, the bank will have to cut $10 in lending, adding to the drying up of credit.
How about the big, money center banks sitting there with Trillions in housing derivatives? "Normally" losses of 1-3% in the value of the mortgages underlying the security is projected. What happens to the value of the security when those losses approach 30%? Again, the value of the reserves is dramatically slashed, further choking off credit.
Unfortunately, we are in worse condition than the mainstream media and the government wants you to believe.
If you want to learn more about the reality of our situation and what you can do to protect yourself and your family from economic ruin, read the other posts in this blog.
Bill Young, 646-961-3818
Saturday, May 2, 2009
The Banksters Ultimate Plan!
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| renowned, late Georgetown macro-historian(mentioned by former President Clinton in the development of civilization...with an awesome capability." - Dr. Peter F. Krogh, Dean of the School of Foreign Service (Georgetown) | |||
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