Thursday 25 September 2008

AS FALLS NIAGARA

yo! innit!... a week a long time inna BAILOUT...

PALOOKAVILLE FINANCIAL stardate capitulation day+7

Admiral Paulson anna salty dogs onna dorkship TITANIC...out of Wall St.
are fighting for the inflatable life rafts that have been stowed away under CONGRESS
for the inevitable FINANCIAL EMERGENCY...

the national debt is so huge now anyway that, the hope is, no one will notice another
7 BILLION...

...there is enough hot air in congress, they believe, to inflate well beyond these paltry figures...

onna good ship BLOGOSPHERE the maroon has gone up anna bloggin stiffs is tryin ta get the workin stiffs ta get onna 'phon ta their congressperson...an ammer em flat abaht a ears....... an get em ta stop paulie from sinkin a dollah.

a week after the MOTHER plan was launched a liquidity is solidified agin anna
banks wotz BUST is sh*ttin bricks waitin fo a 'flatables ta come rescue em...

ya BANKERS wot dunnit are clean away wiya BONUS so large an heavy atta workin stiffs is gettin restless an gon get a congress ta GET THE MONEY BACK OFFA EM...

meanwhile with the alien hedge funds glued together by the Lepage glue gun anna day traders slapped silly by a VENGERS a shock an scares is goin dahn wiya villa...

VIAGRA FOR NIAGARA

ya BOOM is BUST an a BAILOUT is all ya got ta save a TITANIC but even Cathy Berberian knows...

inna current onna niagara river a TITANIC is bein swep along atta evva faster rate...
a enjin gone DROOP an a moneh be needed fo VIAGRA ta STIFFEN resolve an RESTORE CONFIDENCE...says CAPTAIN BRUSH...skipper o a titanic wen she took a wrong course...

a THREE OFFICERS are countin anna pressure buildin up inna congress steam room, fromma meltdown, ta motivate a suckers ta cough up!

Jonathan Weil : Why Mark-to-Paulson Accounting Won't Save Banks

..."The plan goes like this: Treasury will pay financial institutions above-market prices for garbage assets nobody else wants. Then, through the magic of mark-to-Paulson accounting, everybody else that owns similar stuff will use those same prices, or marks, to value the trash on their own balance sheets.

Shazam! Banks and insurance companies write up the asset values on their books. They post big profits. Their capital goes up. Everyone gets fooled. And nobody knows the difference.

Except, we do. And that's why the plan probably won't work.

Still, give Paulson and Federal Reserve Chairman Ben Bernanke credit for ingenuity. At the same time banks are begging regulators to suspend mark-to-market accounting rules so they can avoid disclosing more losses, Paulson and Bernanke instead devise a way to abuse the same rules for the same banks' benefit.

Put It in Reverse

Under Paulson's plan, Treasury would hold so-called reverse auctions for financial institutions' troubled assets. Whoever submits the lowest bid gets to sell its junky assets to Treasury for cash.

While that might look like a competitive, free-market mechanism, it's not. Once the first bid in the first auction is submitted, it may not go much lower, and it probably will be much higher than the true market value.

That's because the real incentive for the banks isn't to sell their rubbish to Treasury and get cash. It's to watch the Treasury pay grossly inflated prices to others. That way, they can use those transactions for accounting purposes to mark their books to the Treasury's farcical market prices.

This presents another problem. The transaction prices coming out of these auctions may not meet the accepted definition of fair value. Under the Financial Accounting Standards Board's definition, fair value is the price ``in an orderly transaction between market participants.''.." Bloomberg..........

Kevin Hamlin : Asia Needs Deal to Prevent Panic Selling of U.S. Debt, Yu Says

Sept. 25 (Bloomberg) -- Japan, China and other holders of U.S. government debt must quickly reach an agreement to prevent panic sales leading to a global financial collapse, said Yu Yongding, a former adviser to the Chinese central bank.

``We are in the same boat, we must cooperate,'' Yu said in an interview in Beijing on Sept. 23. ``If there's no selling in a panicked way, then China willingly can continue to provide our financial support by continuing to hold U.S. assets.'' (my emphasis) - hat tip naked capitalism


bluepetey
: AS FALLS NIAGARA
...SO FALLS NIAGARA FALLS

capitulation posponed, gravity defied, fat lady....waitin...

am only waitin til a mornin comes...til a mornin commmmes...



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