To begin with, I and my team have been working on a response to this draft bill since about midnight. It was over 130 pages, and was released sometime around midnight. I wonder how many people who feel it was mistake to vote the bill down actually took the time to carefully read and understand all 130+ pages between 12 am EST and now. Do the yaysayers even know what it is they were saying yay to? Do the senators and congressman that I did not speak to really have a firm grasp of what they are doing here? It truly appears that independent economists, actuaries, market and investment professionals were not consulted in the drafting of this plan that is rife with holes and ambiguities.

As for solutions... Well, I hate to say this but the solutions should have been started last year at the latest. This WAS NOT hard to see coming. I sold off my real estate holdings in 2004 and 2005. I then shorted residential and commercial real estate companies, mortgage insurers, leveraged loan issuers, investment and commercial banks, etc., and freely published my research, findings and opinions for over a year. Did I have a crystal ball or next quarters Wall Street Journal? Of course not! Was I just that lucky? Well, I was lucky, but not that lucky. Am I just one of the smartest men alive? Decidedly not! As a matter of fact I may not even be the smartest person in a 7 foot radius. What I am is a man that just paid attention to facts and details. I use spreadsheets instead of emotion and I can tell when someone is lying. It's just that simple. I created this blog in September of 2007 to chronicle my investment actions and to warn the world of the "BUST" portion of the Boom-Bust economic cycles. BoomBustBlog.com!

Speaking of warnings, the writing was on the wall a long time ago yet members of the administration and even the Fed have openly denied the gravity of the situation for over a year, and as lately as a few weeks ago. Now, they want to scream Armageddon! Let me excerpt a portion of "Shock and Awe, 2.0!":

Paulson's past statements, specifically, his declaration six months ago that "our institutions, our banks and investment banks, are strong," or his statement four months, "I do believe that the worst is likely to be behind us," can lead one such as myself who disliked Bush politics before it was cool to do so to wonder about this man's credibility. Stage exit left every major investment bank in this nation, the largest mortgage bank (Countrywide), the largest bankruptcy in the history of this country (Lehman, the 2nd largest was about 1/8th the size of Lehman), the largest THREE bailouts of any single company (Fannie, Freddie and AIG), and the imminent failure of the largest thrift (WaMu), not to mention all of the trash paper sitting on the books of banks, brokers and hedge funds (see Counterparty risk analyses - counterparty failure will open up another Pandora's box, Banks, Brokers, & Bullsh1+ part 1, and Banks, Brokers, & Bullsh1+ part 2).

Now he declares that we face a virtual financial armageddon if we do not immediately give him a revolving credit line of $700 billion+ dollars and immunity from the law and the legislature? Have I missed something here? Now, I've been known to doubt this man in the past (see Reggie Middleton says don't believe Paulson: S&L crisis 2.0, bank failure redux), but this most recent ballsy move is actually disturbing my sleep (and as cute as I may be, even I need what little sleep I can get!).

His extreme flip-flopping leads me to believe that he is either disengenious or incompetent. After all, I have considerably less resources at my disposal, and I declared as far back as April that "The worst is behind us, unless massive bank failure is considered a bad thing!".

Here are some ideas for concrete solutions...

Published in BoomBustBlog

Ban on short-selling

US: The Securities and Exchange Commission on Friday issued an emergency order temporarily banning short selling in the shares of 799 financial institutions until midnight on October 2, 2008. The SEC said it may extend the order if it's necessary to protect investors, but it won't last more than 30 days. In a pre-trading market GS and MS have gained 10%.


The U.S. Securities and Exchange Commission may require hedge funds to disclose their short-sale positions and plans to subpoena the funds' communication records. The SEC would hedge funds and investors managing more than $100 mn to publicly report their daily short positions. SEC has also made it a securities fraud when sellers deceive brokers about delivering shares to buyers. The SEC would also impose penalties on brokers if their clients haven't delivered shares to buyers within three days of a short sale. The SEC also approved a rule drafted in March 2008 that it would amount to be a fraud for investors to lie to their brokers about locating shares to be sold short. Currently, brokers rely on their customers' assurance that they had located shares that could be used to cover a sale.

UK: Britain's Financial Services Authority has imposed temporary ban on investors from taking new short positions in financial stocks from midnight on Thursday, September 18. The ban has been imposed until January but would be reviewed each month.

Published in BoomBustBlog

I always stand behind my research. There are some times when I am wrong, and when so I will admit it. The regional banks on the list have some serious potential problems from a valuation perspective, and the ones that I performed a full analysis on (downloadable pdf) I feel are overvalued. That included PNC and STI. I am not (usually) swayed by day to day or even month to month movements in the market that do not follow the fundamentals of the company since there are so many other factors at stake here such as government intervention (a very heavy dose), momentum and algorithmic traders wielding a lot of capital, incessant short covering from weak handed players or funds whose hands are being forced through ill-conceived redemption clauses, etc..
I use a 6 to 12 month horizon when shorting, and in certain circumstances must extend even beyond that. Earnings season is upon us again, and we get to see who has no clothes. Don't be fooled by optimistic accounting numbers either. It is the economic numbers that feed the short thesis of the day. Remember, Freddie and Fannie had adequate accounting capital, and they just got their common and preferred shareholders wiped with the brown side of that white tissue in the bathroom.

Published in BoomBustBlog

Note the graph below that shows the bank borrowng from the Fed over the last century. A picture is worth a thousand words. Imagine imposing a 10 year (mean time between recesssions, roughly) over this graph. The NBER official recessions are the gray bars on the chart. This speaks volumes. Although the Fed has seeming declared itself the checks and balances are of the government opposite the Administration and the Legislature by donning the powers to change the very nature of Fed lending,they have done so nonetheless. This means there was a percieved grave need for such. This need apparently never manifested itself during the previous 19 recessions over the last 100 years or so. 'Nuff said.

To think, some actually argue whether the banking crisis is over or not.

Published in BoomBustBlog
Monday, 28 July 2008 01:00

The next step in my investment thesis

BoomBustBlogger Goatmug
has literally read my mind in a very recent comment, thus I have taken
the liberty to post his comment as an official blog post. This is what
I have had my team working on for the past few weeks. I would have had
some tangible results earlier, but the financial mess is more involved
than anyone could have guessed. That government put option assignment
didn't help any either. I would also like to thank all for the
supportive words regarding my effort with the blog. Don't worry, I will
continue to push out hardcore analysis. I can't guarantee it will
always be free, but I can guarantee it will be accessible to those who
appreciate its value and will be of value to those who share my values
and contrarian perspectives.

From Goatmug:

I just read this, some of Thain's comments regarding capital raising from a Reuters article.

By the way, that PNC trade looks good. I'm convinced $70 area is upper resistance (like steel). I was so disappointed to see that it came off of $69.50 where I bot more puts.

Published in BoomBustBlog
Thursday, 17 July 2008 01:00

It's Reggie Middleton vs. the "Man"!

Government manipulation in the free markets will lead to more volatility, not less

The market has predictably rallied as a result of a massive, US government induced short squeeze. We all saw this coming. We all know this is government manipulation, and not a fundamental occurrence. Yes, that's right! Pure, unadulterated government manipulation. The government gave special relief to a very small segment of the market, the very same segment from which many of those same officials hail from (Wall Street), in an attempt to prevent the price of their shares from reaching equilibrium with their value. This is nothing but interference in the free market system. Let's not even broach the discussion of the ethics or legality of naked short selling. The government failed to ban the practice for the homebuilders whom I shorted into single digits, they failed to do it for the monolines whom I shorted into the single digits, they failed to do it for the regional banks whom I am on way to riding to the single digits, they failed to do it for the retain industry, the automotive industry. So what makes them do it for Wall Street? Let me help you ponder that query... The table below is derived from  , and is a compilation of Washington lobbyist money by sector. If you had to guess who donated the most money to Washington over the past 10 years, who do you think it would be? Okay, I know that's a hard question, so I'll give you a hint. What sector just got preferential treatment in an attempt to prevent entities such as mine from shorting certain companies' share to the point where their share price matches their companies' intrinsic value (ex. Goldman Sachs is worth a tad bit less than $130 per share, yet it is trading over $180, an ideal opportunity for me)? Still can't guess. Okay, here is another hint. What industry (or even company whose shares are currently overvalued) spawned the last few treasury secretaries? Need more hints???

Sector Total
Finance, Insurance & Real Estate $3,102,713,952
Health $2,902,546,732
Misc Business $2,764,829,300
Communications/Electronics $2,561,657,697
Energy & Natural Resources $2,052,875,397
Transportation $1,626,912,330
Other $1,570,867,542
Ideological/Single-Issue $1,055,993,246
Agribusiness $960,997,755
Defense $875,340,534
Construction $339,588,492
Labor $323,749,249
Lawyers & Lobbyists $248,316,048

So the SEC participates in this cronyism cum capitalism for sale game (and I really mean that) and the shares of the financial stocks (whose macro situations, micro situations, and balance sheets are very bad and getting worse) sky rocket upwards. The CEOs of these companies such as Dimon (who just bought a $20 billion company for less than 5% of that and still had bad numbers), says outright, things are bad and they are getting worse - yet his shares jump, and jump hard (more on this later). Well, if you think that there was a lot of volatility when they fell the first time, what do you think will happen to the volatility number after they knee jerk upward with valuations still falling down. Eventually, price = valuation, then free fall. Granted, somebody may have had an opportunity to dump some stock while the prices were artificially elevated above their intrinsic value, but so be it.

So, now you all know what I think will happen when the market eventually comes to the same valuation conclusions that I do? The government (actually, the SEC) has exercised its rendition of the Bernanke put, and I have been assigned. No problem, I have plenty of cushion from reading the overvaluations in the market correctly up till this point. Thus, I will accept my assignment and move on with my synthetic short position ala the SEC, for I am confident equilibrium will be reached. So, what happens if I am right?

At the end of the day, the fundamentals will always rule. After all, we all eventually have to pay our bills

I've been offline for a day or two, come back and see many have lost faith in the fundamentals due to a government induced bear market rally! My, hence this blog's focus and forte, is extreme fundamental and forensic analysis. My strength is cutting through the bullsh1t. You know how some guys are good at basketball, some are natural poker players, well my nose is acutely attuned to bullsh1t. Do not, and I repeat, do not take the PR and marketing pitch's in press releases, financial media news blips, and people who generally either have no idea what they are talking about or have an extreme incentive to bend the facts as a proxy for actual

This should put the current banking
crisis in perspective. No amount of government manipulation will make
the subject matter of these postings dissipate, sans proper regulation
of off balance sheet activities and mortgage lending - Oh Yeah, it's
too late for that, isn't it!
Remember, if the link leads to this message, "Cannot
find the entry.The user has either change the permanent link or the
content has not been published." it means that the article has already
been archived, and you will need to access it through this link in the
main menu - "Archives"
.

The orginal Doo Doo 32 post: As I see it, 32 commercial banks and thrifts may see the feces hit the fan blades

A sampling of the Asset Securitization series:

  1. Intro:
    The great housing bull run - creation of asset bubble, Declining
    lending standards, lax underwriting activities increased the bubble - A
    comparison with the same during the S&L crisis

  2. Securitization - dissimilarity between the S&L and the Subprime Mortgage crises, The bursting of housing bubble - declining home prices and rising foreclosure

  3. Counterparty risk analyses - counter-party failure will open up another Pandora's box (must read for anyone who is not a CDS specialist)

  4. The consumer finance sector risk is woefully unrecognized, and the US Federal reserve to the rescue

  5. Municipal bond market and the securitization crisis - part I

  6. Municipal bond market and the securitization crisis - part 2 (should be read by whoever is not a muni expert - this newsbyte may be worth reading as well)

  7. An overview of my personal Regional Bank short prospects Part I: PNC Bank - risky loans skating on razor thin capital, PNC addendum Posts One and Two

  8. Reggie Middleton says don't believe Paulson: S&L crisis 2.0, bank failure redux

  9. More on the banking backdrop, we've never had so many loans!

  10. As I see it, these 32 banks and thrifts are in deep doo-doo!

  11. A little more on HELOCs, 2nd lien loans and rose colored glasses

  12. Will Countywide cause the next shoe to drop?

  13. Capital, Leverage and Loss in the Banking System

  14. Doo-Doo bank drill down, part 1 - Wells Fargo

  15. Doo-Doo Bank 32 drill down: Part 2 - Popular

  16. Doo-Doo Bank 32 drill down: Part 3 - SunTrust Bank

  17. The Anatomy of a Sick Bank!

  18. Doo Doo 32 Bank Drill Down 1.5: The Forensic Analysis of Wells Fargo

performance. Look at the actual performance numbers, not the press releases, and not the "analyst's "so-called" expectations which fluctuate like the wind and are easily manipulated by management. An example of what I am referring to is when analysts expect a company to report $1 profit. The company comes out with guidance, 60 cents lower, and the sell side community drops there expectations accordingly to 40 cents (I look at its as this company is #$@#$ up). Well, when the company reports a 50% drop in profit, the "Street" applauds and the stock skyrockets because the company beat expectations by 25%. Whaaaaat!!!!??? Think about it. The company earnings stream, based on this period's earnings, is half as valuable as it was last period, yet the stock pops as if there was some good news to be had. This is a shell game, plain and simple. I understand why the Street plays it, but the readers of this blog know better. Just imagine if you received a 50% pay cut, then your boss wants to celebrate your "promotion" with a party. I already see many with that bewildered look on their face as I type this. Well, welcome to the earnings expectations vs. reality game.

Now, I will briefly go over the results that accompanied the Cox version of the Bernanke put:

JP Morgan: CEO has dire outlook for the present and even worse for the future, credit reserves increase across the board, gets a $20 billion plus company (along with a $3 billion Park Avenue office building), a fat government subsidy and plethora of guarantees, for almost less risk adjusted economic outlay than the Yankees paid for A Rod, and still reports 51% drop in net (I didn't even check to see if BSC's profit and revenue were added in to JPM's numbers). Where is the good news in this???

PNC: As I forecasted in my analysis, charge-offs skyrocket, capitalization remains thin.

MTB: More of the same

Wells Fargo: Smoke and mirrors at its best. They move the goal posts closer then say they kicked a field goal. Note the HELOC charge off modification. Note no explanation on how they profited from MBS sales when the rest of the WHOLE WORLD failed to do so. They raise their dividend during a time of global bank capital constraints. Why do such an imprudent thing, you ask? Smoke and mirrors, my friend. Smoke and mirrors.

I will go a little more in depth into PNC and WFC if I get the time later on today.

As a backdrop, for those who haven't read my background research on the banking system, please do. After reading it, I don't see how anybody can be very positive on the US banking system - at all.

Published in BoomBustBlog
Sunday, 13 July 2008 01:00

Weekend Ruminations

As some may have gathered, I may getting increasinly busy, thus may not be able to get to all emails and comments. No need to fret though, we have some of the brightest, and capable financial minds in the blogoshere wafting through these vitual annals. I've noticed the various experts in their respective fields, analysts, traders, money managers and ultra high net worth inverstors have more than taken up the slack. Thank you.

For those who may be wondering about my shorts, stay calm. I've grown to become pretty good at this stuff. Don't look at Amex as what you think they do, look at them for what they actually do. As one astute commenter pointed out, their debt to equity ratio has skyrocketed in an attempt to gain rapid fire growth, their credit risk is significant, and their core business market is being wrecked by the current economic hard landing. Did I mention the credtit risk that they were exposed to?

When AXP ended up on my short list, I smiled wide. A virgin short, that most would not see until it was too late. Oops, I better keep quite until I have fullybuilt up a position.

The run has started on Lehman again according to the rumor mill.

    FreddieMac is set to sell $3bn on short-term debt on Monday. Secreatry Paulson is working on plans to inject up to $15 billion into F&F at highly dilutive terms for current shareholders. Paulson and Bernanke are apparently on a mission to prove that they are not the barons of moral hazard by purposely punishing the risky taking investors in failed companies. I agree with this stance, for the Bear Stearns equity investors got more than they probably would have recieved from the market in a conventional dissolution - all thanks to Fed subsidies. The leaves a black eye on the credibility face of the Fed.

  • In a recent Lehman Brothers report: If FAS 140
    change goes through requiring to put off-balance sheets items back on
    books, Fannie Mae would need to add $46 billion of capital and Freddie
    Mac would need about $29 billion, although companies will probably get
    an exemption from the rule--> stocks plunge around 20%, agency
    spreads over Treasuries highest since March 13 (=benchmark for prime
    mortgages); CDS on both F&F above 200bp. Let me be clear on this, F&F ARE the mortgage market now. Most other banks have stopped writing much of the non-conforming stuff, and the conforming stuff is written due to the F&F liquidity put. If F&F slow down to any signficant degree, housing values will plummet significantly.
  • William Poole of the St.Louis Fed recently stated the obvious (and what I have been alleging about banking concerns since last year): INSOLVENCY -"Freddie Mac owed $5.2 billion more than its assets were worth in the first quarter, making it insolvent under fair value accounting rules" i.e. if assets and liabilities were marked-to-market--> Lockhart (OFHEO), May: By Q1 2008, FannieMae 'fair value' Tier 1 capital ratio at 0.4%, and -0.2% for FreddieMac - These numbers are ridiculous and obvious take into consideration implicit government backing
  • James
    Lockhart (OFHEO): "F&F are adequately capitalized wrt regulatory
    requirements" which are not mark-to-market but historical cost. Hey, I historically had a couple million extra dollars lying around. Do you think I could spend them now???

    FreddieMac is set to sell $3bn on short-term debt on Monday. Secreatry Paulson is working on plans to inject up to $15 billion into F&F at highly dilutive terms for current shareholders.

  • In a recent Lehman Brothers report: If FAS 140
    change goes through requiring to put off-balance sheets items back on
    books, Fannie Mae would need to add $46 billion of capital and Freddie
    Mac would need about $29 billion, although companies will probably get
    an exemption from the rule--> stocks plunge around 20%, agency
    spreads over Treasuries highest since March 13 (=benchmark for prime
    mortgages); CDS on both F&F above 200bp. In case this point is lost on somebody, let's make it clearer. THe MBS market supported by F&F, alleged AAA and AA rated agency debt, will absolutely crush those undercapitalzed (and that would be many) CDS writers who have used this stuff as underlying. Left holding the (BIG) bag would be those who actually thought they would be getting paid on the stuff... the chain reaction dominoe effect begins... look into AGO for an example of the hubris of Super Senior AAA false confidence. I have thorough analysis on this site of AGO and the CDS market - definitely worth looking into.
  • William Poole (St.Louis Fed): "Freddie Mac owed $5.2 billion more than its assets were worth in the first quarter, making it insolvent under fair value accounting rules" fair value accounting rules are just that - FAIR, for example, if assets and liabilities were marked-to-market
  • CNN.com: S&P estimated that the cost of a Fannie/Freddie bailout would run somewhere between $420 billion and $1.1 trillion compared to $140bn taxpayer bill for S&L ($250bn in today's dollars).In Reggie Middleton on the Asset Securitization Crisis, I made a direct comparison of this crisis to the S&L debace, see The Asset Securitization Crisis vs. the S&L Crisis - pt 2
  • Resolution Trust Corp, part deux: Rosner (via Bloomberg): Government could move the companies' combined $1.5 trillion investment portfolios into a separate limited liability corporation that would gradually liquidate the assets. Meanwhile, securitization business could continue.

Published in BoomBustBlog
Thursday, 10 July 2008 01:00

An inspiring email from a reader

Quite a few readers have emailed me with similar stories. I thought I would post this one, with permission, of course.

I know that I've said thanks. I'll say it more before its over, no doubt.

Since Jan 16, 2008....we have doubled my initial investment while keeping over 50% in cash. Thats short term - pay taxes on it and I'm sittin on half that much paper gain.

I don't know much but I can read. That was achived usin what I've come to call 'sell and wait'.

About 3 months in I noticed I was 'early' often. I took a nore relaxed approach and things got easier.

I 'missed' bear btw so this wasn't a 1 shot deal.

I've learned and hopefully will be more adept as time goes on.

My major drawback is I take too many naps. :-)

Published in BoomBustBlog
Thursday, 19 June 2008 01:00

Blogger will work for food

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As I have mentioned before, I am looking
for avenues to syndicate the content of my blog. I know I am biased, but I
think this blog delivers top notch, timely and unique content. It being my
blog, I am probably not the most objective judge… Many of you came to this blog
from Seeking Alpha,
where I was a contributor. It appears as if I have done something to piss them
off, for they have not ran any articles lately and have not returned my emails.
I’m pretty sure the reason is my complaining about the changing of the content
of my articles, something that I cannot tolerate. The editors that I dealt with
were always very professional and polite though, and I would like to make that
clear. Nevertheless, being forced to gather my own eyeballs may have been the
best thing that has happened to this blog. Let me tell you why…

The possible offense (I am not quite
sure why I am not getting return emails or articles ran) probably came from my
linking to a very interesting discussion on Seeking Alpha’s business model,
editorial practices (of which I complained in the actual linking), and
blogonomics in general. You can read my comment here
(you may have to scroll up a bit to see it). The actual discourse that I linked
to is here,
and stems from a little beef that Barry Ritholz, the popular blogger, analysts
and CNBC contributor had with SA over some of the exact same issued that I had.
I recommend those interested in blogonomics give it a glance. Keep in mind that
I
image001.png

(being the stuck up, conceited bastard that I am) truly believe that a steady
stream of buy side quality, forensic research is a rarity on the web, hence I
often lapse into a state of actually believing this blog’s content has some
value. The argument made by SA’s founder about the blogger’s incremental effort
in content redistribution is a little murky, but I will get into that at a late
time. My content easily costs me into the six digits to produce, thus it is not
cheap. Although there are some very good blogs out there, especially in the economics
research and opinion space, ex. Ritholz’s is one, as well as Calculated Risk
and Mish (see my blog
roll
), I think I am the only one that performs thorough buy-side forensic analysis
from a macro investor’s perspective - at least the only one that does it for
free.

Seeking Alpha does seem to expose
certain popular writers with a significant amount of exposure, and their coup d’etat
and primary value driver is the deal that they inked with Yahoo Finance to have
their blog’s content carried on Yahoo’s ticker news feeds, which are very heavily
used. Now, being the conceited bastard that I am, I wondered, “If they don’t
want my stuff, and I think my stuff is worth wanting, why don’t I just move to
have my stuff carried directly by the major news feeds and outlets?”. Damn,
could you imagine if Yahoo, Reuters or Bloomberg carried analysis as hard hitting,
thorough and extensive as “
GGP
and the type of investigative analysis you will not get from your brokerage
house” on their newswires?

``There's nothing you can glean from
them that's going to make you any money,'' said Jack
Ablin
, who oversees $62 billion as chief investment officer at Harris
Private Bank in Chicago. ``Right now `Wall Street' and `unique research' is an
oxymoron. Unless they're able to do some kind of very unique research, I don't
see any of them coming up with an edge.''

I’m thinking that this could literally
transform financial news and reporting, as well as give the traditional rags
the much needed shot in the arm they’ve been craving every since the Web
started devouring their margins and their business models. Now, how do I get
these guys’ attention? Well, I’ve put together a little compilation of popular
(but far from complete) articles, posts and analyses from the blog, and have
date stamped them along with the company that they are referencing. I am not
going to publish performance figures, but you guys (and girls) can figure it
out for yourselves. The factor for determining the results of a short sale is
about -1.9x the change in price. If any of you know one of the major media
publications with a finance interest, use the mail or recommend functions of
the blog to forward them a copy of this article. Of course, I would appreciate any
feedback or comments that my readers have as well.

Published in BoomBustBlog

So, thus far we have had a massive real asset bubble fueled by easy credit, low interest rates and low inflation. We have had that bubble burst, inflicting severe damage in the commercial, investment, mortgage, and shadow bankin system as well as the real asset markets. Despite this, there is still a large overhang of inventory in real assets (dead weight), low demand, and cap rates are still near historic lows.


The Threats from Infation are Quite Real

Well, I believe a spike in inflation, hence interest rates, will force cap rates upward and do what he investment public has failed to do thus far - and that is create a realistic pricing environment for both real assets and the credit derivatives that financed them. This will absolutely wreck margninal banks and the not so marginal banks who aren't doing that well - even in the zero interest rate environment promoted by the fed. So if the banks are sick now (see The Anatomy of a Sick Bank!) imagine how they will fare with the disease of inflation creeping up their backs. Since they power the real asset market, and the real asset market is still in the throes of bubble pricing, what happens next??? Think the S&L crisis! See the following excerpts from Reggie Middleton on the Assset Securitization Crisis for my take on how we will make the S&L Crisis look like an episode on Sesame Street. For those that remember or research, it was the rise in interest rates that pushed the S&L's over the bring - althought they probably had it coming anyway.

  1. Intro: The great housing bull run - creation of asset bubble, Declining lending standards, lax underwriting activities increased the bubble - A comparison with the same during the S&L crisis
  2. Securitization - dissimilarity between the S&L and the Subprime Mortgage crises, The bursting of housing bubble - declining home prices and rising foreclosure
  3. Counterparty risk analyses - counter-party failure will open up another Pandora's box (must read for anyone who is not a CDS specialist)
  4. The consumer finance sector risk is woefully unrecognized, and the US Federal reserve to the rescue
  5. Municipal bond market and the securitization crisis - part I
  6. Municipal bond market and the securitization crisis - part 2 (should be read by whoever is not a muni expert - this newsbyte may be worth reading as well)
  7. Reggie Middleton says don't believe Paulson: S&L crisis 2.0, bank failure redux
  8. More on the banking backdrop, we've never had so many loans!
  9. As I see it, these 32 banks and thrifts are in deep doo-doo!
  10. A little more on HELOCs, 2nd lien loans and rose colored glasses
  11. Capital, Leverage and Loss in the Banking System
Published in BoomBustBlog