Jiff
http://www.anonymity.pro.tc

Written after many “Give it up Earl” solitary conversations:

The continuing saga of Anon vs. Earl blog posts:

Your argument of “mega banks” relying on “hedging as part of their mortgage business” is what got us in this mess in the first place. Don’t you understand that it was that supposed to be “no risk”, “park-off-the-balance-sheet” attitude that allowed traders, buyers and sellers, to make up whatever new hot crap that they could come up with in order to max out and collect their annual bonuses before jumping to the next ship, all the while assuring the “mega banker” traders, who also jumped ship annually, that “You’re covered.”

Back to basics please. Over and out.

Earl

In normal bankruptcy operations, the debtor rejects/terminates all contracts that are losers for the debtor, and the counterparty just gets an unsecured claim subject to haircut. You don’t understand normal bankruptcy operations if you think bankruptcy protects counterparties from a haircut. Brokerage customers holding securities in a custodial account get protected, and counterparties to some contracts get to net flows under their contracts with the debtor, but none of that prevents a counterparty from taking a haircut.

Banks want special favors; they don’t want regular bankruptcy treatment.

See and feel: Fermi Gamma-ray Space Telescope
http://en.wikipedia.org/wiki/Fermi_Gamma-ray_Space_Telescope

Mission:

Probe dark matter (e.g. by looking for an excess of gamma rays from the center of the Milky Way) and early Universe.
Search for evaporating primordial micro black holes (MBH) from their presumed gamma burst signatures [Hawking Radiation component].

Also see and feel: Higgs boson

http://en.wikipedia.org/wiki/Higgs_boson

The Higgs boson is a hypothetical massive scalar elementary particle predicted to exist by the Standard Model of particle physics. It is the only Standard Model particle not yet observed.

>> I'm feeling the need to be given lots of money to create a huge amusement park, where mice will rule the world:

See: To avoid a burst of land speculation, Disney used various dummy corporations and cooperative individuals to acquire 27,400 acres (110 km², 43 mi²) of land. The first five-acre (20,000 m², 217400 ft²) lot was bought on October 23, 1964, by the Ayefour Corporation[citation needed] (a pun on Interstate 4). Others were also used with a second or secret meanings which add to the lore of the Florida Project, including M.T. Lott Real Estate Investments (pronounced empty lot).

Hmmm….

I don’t think the govt should put “$$$$gazillions” or any money into helping these firms or assets. As another poster stated, bankruptcy is the best course but think it should be in normal market operations, that is done without the govt canceling contracts.

Thanks for helping correct my “limited experience”.

As someone who has lived through several “you’re just being old fashion” market balloons like the “profits are no longer needed to be successful” dot.com bust, I do have an appreciation for your apparent limited experience, and mind set. Mortgages once were considered to be a safe place to park customer deposits back into the community from which the deposits came at a 1% to 2% spread over Fed rates. Your local banker knew you, knew who you worked for, had lunch with you once a week at the Lion’s Club, and probably drove passed your house daily on his/her way to their Bank. This was called, way back when, in biz school lingo, DUE DILIGENCE, a now forgotten distinction.

The only bright light I’ve seen in recent times was an article saying that tons of deposits were being transferred from mega banks to local banks. I personally witnessed this phenomena while doing the same after a late night call to a client in July saying, “We need to get your funds out of WaMu, and over to Wells (SF Bay Area) as early in the morning as we can”. The young, very bright, upper management trainee doing his obligatory two years in the branch wilderness said that he had had a solid line of $150k to $250K checks come over his desk from elderly clients, just like mine, that same day, and then reported that the line had continued ever since when I last saw him two weeks ago.

So I would say just put the $$$$gazillions of dollars you would like to be used to bail out Banksters into a new Fannie/Mac/FHA fund for new mortgages, not the feted toxic waste, Black Hole, Casino Scheme, Spa Retreat, crap they’re presently being spent on.

That’s my answer.

Earl L. Crockett
Santa Cruz, CA

Put all insolvent righters of CDS protection into bankruptcy, and let the bankruptcy court wipe out CDS buyers of protection. Bankruptcy law is old law, predating CDS. then let the government recapitalize any entities we want to keep around for jobs or whatever.