Because there's no such thing as "support" in a bear market.

Doc,

Are you an Eagles man? Or just a Phillies fan?

Those that need to can't.
Those that can will not.

The essential credit condition that Weimartians neither understood, nor anticipated.

Now, as penance, go push on a string....

CNBSer fumble manager says CFC has book value of $22 and is a buy.
Where do they get such men?

Nobody puts my Georgie in a corner.

GO BEARTH!

I posted this in IDS. Shorty is right, there are free houses in America. Is this a great country?

THE FINANCIAL TSUNAMI
Part 1: Deutsche Bank's Painful Lesson
by F. William Engdahl
November 24, 2007

Even experienced banker friends tell me that they think the worst of the US banking troubles are over and that things are slowly getting back to normal. What is lacking in their rosy optimism is the realization of the scale of the ongoing deterioration in credit markets globally, centered in the American asset-backed securities market, and especially in the market for CDOs—Collateralized Debt Obligations and CMOs—Collateralized Mortgage Obligations. By now every serious reader has heard the term “It’s a crisis in Sub-Prime US home mortgage debt.” What almost no one I know understands is that the Sub-Prime problem is but the tip of a colossal iceberg that is in a slow meltdown. I offer one recent example to illustrate my point that the “Financial Tsunami” is only beginning.

Deutsche Bank got a hard shock a few days ago when a judge in the state of Ohio in the USA made a ruling that the bank had no legal right to foreclose on 14 homes whose owners had failed to keep current in their monthly mortgage payments. Now this might sound like small beer for Deutsche Bank, one of the world’s largest banks with over €1.1 trillion (Billionen) in assets worldwide. As Hilmar Kopper used to say, “peanuts.” It’s not at all peanuts, however, for the Anglo-Saxon banking world and its European allies like Deutsche Bank, BNP Paribas, Barclays Bank, HSBC or others. Why?

A US Federal Judge, C.A. Boyko in Federal District Court in Cleveland, Ohio ruled to dismiss a claim by Deutsche Bank National Trust Company. DB’s US subsidiary was seeking to take possession of 14 homes from Cleveland residents living in them, in order to claim the assets.

Here comes the hair in the soup. The Judge asked DB to show documents proving legal title to the 14 homes. DB could not. All DB attorneys could show was a document showing only an “intent to convey the rights in the mortgages.” They could not produce the actual mortgage, the heart of Western property rights since the Magna Charta of not longer.

Again why could Deutsche Bank not show the 14 mortgages on the 14 homes? Because they live in the exotic new world of “global securitization”, where banks like DB or Citigroup buy tens of thousands of mortgages from small local lending banks, “bundle” them into Jumbo new securities which then are rated by Moody’s or Standard & Poors or Fitch, and sell them as bonds to pension funds or other banks or private investors who naively believed they were buying bonds rated AAA, the highest, and never realized that their “bundle” of say 1,000 different home mortgages, contained maybe 20% or 200 mortgages rated “sub-prime,” i.e. of dubious credit quality.

Indeed the profits being earned in the past seven years by the world’s largest financial players from Goldman Sachs to Morgan Stanley to HSBC, Chase, and yes, Deutsche Bank, were so staggering, few bothered to open the risk models used by the professionals who bundled the mortgages. Certainly not the Big Three rating companies who had a criminal conflict of interest in giving top debt ratings. That changed abruptly last August and since then the major banks have issued one after another report of disastrous “sub-prime” losses.

A new unexpected factor

The Ohio ruling that dismissed DB’s claim to foreclose and take back the 14 homes for non-payment, is far more than bad luck for the bank of Josef Ackermann. It is an earth-shaking precedent for all banks holding what they had thought were collateral in form of real estate property.

How this? Because of the complex structure of asset-backed securities and the widely dispersed ownership of mortgage securities (not actual mortgages but the securities based on same) no one is yet able to identify who precisely holds the physical mortgage document. Oops! A tiny legal detail our Wall Street Rocket Scientist derivatives experts ignored when they were bundling and issuing hundreds of billions of dollars worth of CMO’s in the past six or seven years. As of January 2007 some $6.5 trillion of securitized mortgage debt was outstanding in the United States. That’s a lot by any measure!

http://www.financialsense.com/editorials/e.../2007/1124.html

cwd,

I thought you were just referring to the homeless squatters occupying vandalized foreclosed homes.

CNBSer, The brain David Favor. I don't even want to talk about CFC going out of business.

for hyperinflation to take off......credit is not what you key on.... the failure of credit is the cause that will create hyperinflation.... the system will do what ever is the easiest path... with a fiat currency and almost 100 years of history that path is inflation. who knows what that means for the stock market but one thing is for sure...what good is paper money when the system that backs it is on the brink of failure

enough said...own physical gold and silver

According to this decision, they can't throw you out off the house you have been living in with out paying until somebody finds the mortgage. I guess that is some thing like free rent.

This one's too easy. Check out what Google closed at- and I mean TO THE PENNY!

http://quote.yahoo.com/q?s=goog


How appropriate. Google, this one's dedicated to you:

http://youtube.com/watch?v=icAzyx8EsKU

Wanna know what's really fun?

I'll tell ya.

NOT BEING ABLE TO MOVE YOUR SRS STOPS FAST ENOUGH TO KEEP UP WITH THE MARKET!



And congratulations to Doc for being quoted in the mainstream press. Please let us know when your first CNBS appearance will be.

Congrats, Doc!

Holy crap...they killed the homies in the last five minutes. Beazer dumped another 10%, literally, in the last two minutes, to end up 15% down for the day.

This melt is going to start moving with sonic speed if bulls don't save it.

Next stop at 12,500...Looks like a done deal over the next few days.
If they can't hold that....time to find a bunker.

Found one....now what?

[attachmentid=92937]

Was eyeing the December 620 puts on GOOG at 6 dollar this morning.
Didn't quite made it to my entry price. It ended up closing up 100% from the lows.
Dammit!

Finally some BS in the mainstream media!



* BEARsh!t

Hey Shorty and Madness,

Do you think they'll like today's action over in Asia?

Anybody think Mr. BIDU may get taken to the woodshed, or the bidet? I read a guy's comment on a blog that people like him who were inexperienced using the bidet had to be careful not to give themselves an "accidental enema."

RUT closes BELOW the Aug 736 spike low....

I don't know how long this link will show this, but here's the classic LeeWhee "Crown of Thorns" pattern.

http://money.cnn.com/data/afterhours/

ooooooooffffaaaa......that was ugly

charts look like hell.....time for heliben to attempt another blatant rescue attempt?....it will do no good if he does.bond market begging for it now.


i hope bondtrader dumped his longs before the slaughter.

Why is it that only bare ladies drink free ???

No wonder the bunker auctions went so well

http://news.bbc.co.uk/2/hi/uk_news/england...ire/2956574.stm

"People wanted them for a variety of reasons such as birdwatching or somewhere to take their wife.

Somewhere to take the wife?????? Doesn't sound too romantic to me....

They didn't say anything about bringing her back.

I better stop watching those online postings of the old "Alfred Hitchcock Presents" show.

Perhaps where noone would find her...

Beat me to it Drano

Hey Phil, sounds like you're watching them too.

Wow, that's weird, Phil and I have 2 posts in a row that we each posted at the same time.

Woops, that was a link from 2003... Old news...

Here's another one from a year ago:

http://news.bbc.co.uk/2/hi/uk_news/wales/s...est/6098436.stm

Hopefully, the buyer was sub-prime, used an ARM and didn;t have a job. That way we may get it for half of what he paid.

Here's one from 2005 -- how do you like this quote?

"It's very sad that all that money was spent and it's never been used."


How Terrible that the Russians Didn't Bomb Us ! ! ! !

I am a diehard fan of all things Philluffyan. Except awckey. I just can't get into awckey. I was a Flyers fan back in the 70s but lost interest.

I am now a fan of the Shawinigan Cataracts.

I think they call them that because they have trouble seeing the net.


http://www.cataractes.qc.ca/

Meanwhile, I just saw the future for Miami, Las Vegas and SoCal:

Texas ghost town is sold on eBay

A small, uninhabited town in Texas has been sold on the internet auction site, eBay, to a buyer in Italy for a little over $3m (£1.45m).

http://news.bbc.co.uk/2/hi/americas/7110528.stm

Did a big buy order take C up .80 in the final seconds of trading?
I'm seeing a close at 30.70...could had sworn it closed at 29.80.

Probably, Madness, I noticed a few of those myself. It will be interesting to see where they open.

WHOA Bro...

I'm not religious, but I just checked... 666.00

Is that an OMEN or what???

http://cgi.ebay.com/Titan-Missile-Base-Cen...1QQcmdZViewItem

The bear is turning bullish.


Kass: Bet Against These Three Clear Trends
By Doug Kass
RealMoney Silver Contributor
11/26/2007 11:23 AM EST
URL: http://www.thestreet.com/newsanalysis/inve...g/10391593.html

This blog post originally appeared on RealMoney Silver at 7:37 a.m.


I have consistently pooh-poohed the notion of a "negativity bubble" that I have read about on RealMoney and elsewhere for the last year. It was not founded in rigorous analysis, but the message was simply delivered by the dual and dangerous biases of partial and confirmational observations.

Stated simply, markets don't typically crack in the manner they have in the last six weeks when bearish sentiment is pervasive.

No way, no how.

Milton Friedman once wrote that fundamental crisis produces change. Now the bad news is getting badder, and many of the permabull economic stalwarts are quickly retreating. Amid the deteriorating news, there's been no clearer change than what has occurred in sentiment over the past month.

Here's the AP article where I was quoted.

http://ap.google.com/article/ALeqM5gHs5OM3...PT08MAD8T5JNGG0

http://biz.yahoo.com/ap/071126/wall_street.html

This runs not only as the headline after market article in Yahoo Finance, but major newspapers all over the world.



Here's what I told him. He got it perfectly.

Yeah, I just got my Incentive Pay Plan check this afternoon and thought I'd get it invested in a gud valu shtock

If we can do enough of that, we can take care of the trade deficit.

Excellent reaction. Dippers should pile in here with everything they've got. Charts??! they don't need no stinkin' charts . . .

And don't forget, small craps are where the action is.

Doc, congratulations!

Congrats Doc.

It can only be a matter of time before mrotgouge and other bits of Stoolspeak begin to crop up.

Here's my question. Is it too late to re-thort, or too early?

I'd like to hear your thorts on thith.

NYTimes

A couple of more days like this, and the group that's thinking about their portfolios will start shoplifting.

I'm trying to purchase that one by I keep getting outbid by some guy with username VladyPutin

yeth

It's a great and rare thing that a national reporter got the story absolutely right, especially since it is counter to the conventional wisdom. This sort if thing is not good for reporters careers. Congrats Tim Paradis.

Did you talk to him or someone else over the story that made our blood boil about the 'record since post 911 liquidity injection' a few weeks ago? I assume they called you up today now that you are in their Roledex. It will be interesting to see if they call again. There are powerful institutional interests in the main stream media (weaker at AP but still there) to parrot the conventional wisdom authored by the elites. Some call it propoganda, some call it manufacturing consent.