Thursday, August 28, 2014

Risk / Reward Ratio

Contrary to what is presently believed today, interest rates and debt ratings are meant to serve as risk premium pricing mechanism / tool.  To believe otherwise is pure folly (in the long term).

"The DOJ's lawsuit against S&P as a targeted payback for its downgrading the U.S. credit rating in 2011 is entirely consistent with the Obama DOJ's pattern of politically motivated actions.  The lawsuit against S&P was also an effective means to silence and stop Moody's and Fitch from downgrading U.S. government debt - and thereby save Barack Obama from the historical ignominy of the president who lost America's triple-A rating and set the stage for the next financial crisis."  -

comment from the WSJ letters to the editor

Tuesday, August 20, 2013

This Should Get Interesting....

Frischling sees investors pounding for a chance to get into lower-rated loans, which have been fueled by the return of the collateralized loan obligations market.
"The demand for higher returns and lower rated fixed-income assets has soared since Fed Chairman Bernanke made it clear that the tapering of its monetary stimulus program would commence before the end of the year," said Frischling.

C'mon in! The water's fine!

Wednesday, January 23, 2013

Is Corruption and Fraud Our New Normal?


I’ve read the Rachel Dollar Mortgage Fraud Blog for more than a few years now.  I invite you to read the archives…  The “playas” in the mortgage fraud arena come from all walks of life, all socioeconomic backgrounds, various ages, etc.  Some were scammers defrauding the banks, some were insiders within the banks scamming the buyers, some were developers ripping off their customers AND simultaneously ripping off gullible bankers, in some cases it was scammers doing the reverse double duty and ripping off both the banks that employed them and those who were their customers….

I did not vote.  I am a firm believer in the Churchill statement “The best case against democracy is a five minute conversation with the average voter”.  I am a believer in playing the cards that fate hands you and doing the best you can with what comes your way.  We have more than enough “voters” in the US of A to make it unclear that we will remain an actual Republic.  (see Benjamin Franklin’s quote “A Republic, if you can keep it” - seems to me that would require some self-restraint and self control - then look around at your fellow "citizen") I do hope the rickety, hulking contraption hangs in there for at least another 40 years or until I kick off but I’m not exactly optimistic.

"The American people will never knowingly adopt Socialism. But under the name of 'liberalism' they will adopt every fragment of the Socialist program, until one day America will be a Socialist nation, without knowing how it happened."
- Norman Thomas (a fucking Princeton educated Presbyterian theologian from the 1920’s and Socialist party candidate for President)

At his 80’th birthday – “Thomas' 80th birthday in 1964 was marked by a well-publicized gala at the Hotel Astor Manhattan. At the event Thomas called for a cease-fire in Vietnam and read birthday telegrams from Hubert Humphrey, Earl Warren, & MLK, Jr.  He also received a check for $17,500 in donations from supporters. "It won't last long," he said of the check, "because every organization I'm connected with is going bankrupt.”   Kenny Bing comment – so, after 80 years of strolling the planet, did you reach a moment of clarity about your Socialist positions when you uttered those words you ridiculous Kumbaya singing old fuck?

I have one “hopey/changey” where the second Obama administration is concerned.  Now that he no longer has to worry about re-election and/or burning those who helped him get elected / re-elected, I hope that the second term administration begins to seriously turn up the heat on prosecutions.  Whether that happens or not remains to be seen.

I don’t give a rat’s ass about:
  • abortion (so long as no one is picking my pocket to fund THEIR abortion procedure, good luck with that…or not….really do not care about YOUR offspring or lack thereof)
  • gun control (good luck with gun confiscation – the horse left that barn a long time ago – deep down, Uncle Sam already knows this to be true but puts on airs of concern because a certain segment of the citizenry is cool with living in one big Kumbaya singin’, Starbucks sippin’, skinny jeans wearin’ “gun free zone”)
  • equal rights (slavery ended more than 100 years ago, blacks represent what? 13% of the total population and we have a black president, attorney general, etc. – get over it, case closed, pull up your pants and grow up already)
  • gay rights (keep your business to yourself and I really do not care what you cram up your ass or down your throat while singing the national anthem under a rainbow flag)
  • taxes (overreach hard and long enough and every politician under the sun will become reacquainted with the phrase “When push comes to shove, Americans vote their pocketbook”)
  • the war on terror (pfffftttt….see the above statement about overreach)
  • democratizing/intervening in the middle-east (first – see overreach.  second – I have had it up to here with that region of the world – it is an area that is overwhelmed with people in love with suicide and war over idiotic feuds.  The next time they threaten to metaphorically “take a bunch of pills and down them with several shots of vodka and dramatically end it all”, I say we metaphorically “hand them a plastic bag to put over their heads just at the point that they are ready to pass out” so that this time, they finally do the job right and die the suicidal death that they seem to so desperately want.
…and many other features of the American landscape (war on drugs - pfftttt) that hold the attention of many….

Just go after the fraud, the corruption, the double dealing and start purging this society of the rottenness that has taken hold over the past 15 years or so and I will be a happy camper.  I am channeling the spirit of Robert Kennedy toward you Barry and Eric – just steer clear of any fellows named “Sirhan”.

Yours truly - Smug Bastard

Tuesday, January 22, 2013

Aaaahhhhhhh!!!! *fart* Aaaaahhhhhhh!!!!

The sound of relief....

"The workers demanded the scrapping of the ridiculously strict requirements stipulating that workers only have two minutes to go to the toilet and workers will be fined 50 yuan ($8) if they are late once and fired if they are late twice," said the security guard, surnamed Feng. "The managers were later freed when police intervened and when they agreed to reconsider the rules." shit.....just two minutes to pinch a loaf, huh? Slavedrivers!!!

Illinois - A Case Study in the Failure of the Quasi-Socialist Nanny State

Got kids?  Well, bully for you.  Fantastic for you.  I'm sure the little darlings are the apples of your eye and you love being a mommy/daddy or whatever....  That being said -
  • Raise them yourself or with the assistance of your close family members and stop relying upon your neighbors' tax dollars or your state's misguided notions about robbing Peter in order to pay Paul. 
  • Stop looking to the nanny state to help you warehouse your offspring while you work...or party.....or go into fantastic student loan debt so you can attend Le Cordon Bleu school of cooking with the dream of becoming a glorified fry "chef" working the all you can eat buffet at a local gambling casino.
From the Illinois DHS website where you can find info about subsidized babysitting for Socialists.

If Joe Stalin or Mao ran a daycare for toddlers, he would love this arrangement.

Monthly co-payments

What is a monthly co-payment?

The monthly "co-payment" is the portion of child care costs that the parent is responsible for paying to you, their provider. It is your responsibility to collect this amount directly from the parent.
How are co-payment amounts determined?
Monthly co-payment amounts are determined by IDHS and are based on the number of people in the family, the number of children receiving child care and the schedule of the children in care.
The monthly co-payment amount is listed on the parent's approval letter. Read each approval letter carefully-monthly co-payment amounts may change! Co-payment changes can occur each time a parent's case is renewed (redetermined) or if there is a change in the parent's income, the number of people in the family, the number of children in care, or the schedule of care provided. You will receive a new approval letter anytime a monthly co-payment changes so you know how much to collect.

And...what effect does that have on people and the state budget???????
Not to mention the attitude of the citizenry???
Waking up from a dream in which money grew on trees...there will be a great wail and a gnashing of teeth....

From Post Dispatch: Illinois...mile after magnificent mile (of people looking for a handout)  Comptroller Judy Baar Topinka says Illinois is running out of money for child welfare, workers' compensation and services for seniors and the disabled.  Topinka is the state's chief fiscal officer. In a statement Monday, she says state agencies need about $1 billion to carry them through the end of the fiscal year in June. (Kenny Bing comment - kicking cans down the alley)
Topinka, a Republican, says lawmakers need to "end the denial" and deal with the crisis before it jeopardizes critical services residents need. She's urging them to transfer money from more financially sound programs.

Friday, January 18, 2013

UBS is to LIBOR what Enron was for Electricity Consumption Trading

Good movie.  Saw it with a girlfriend and one of the Bing'ettes during a previous life when I was still a Daddy.  When Enron went bust, UBS acquired some of the bits and pieces .... and, apparently, some if not all of the ethics.

“UBS manipulated one of the cornerstone interest rates in our global financial system,”

UBS Japan LIBOR manipulation.