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WyBlog, the best thing about New Jersey since the invention of the 24 hour diner.
Chris Wysocki
Caldwell, NJ
The nine most terrifying words in the English language are "I'm from the government and I'm here to help." - Ronald Reagan
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Technorati and Me
Technorati is indexing me again! They had to make a code change to fix the problem with my blog getting stuck in their queue. Kudos to Eric M. and the guys at GetSatisfaction.com where they have "community powered support for Technorati".
Well, they're "sorta, kinda" indexing me anyway. It's on a 24 hour tape delay or something. So I never get picked up by Memeorandum because they pull from Technorati and Technorati has stuff I posted yesterday listed as my latest blog entry. And that's old news to Memeorandum.
Wankers.
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Recent headlines from my Posterous Blog:
Monday, 31 August 2009
Misleading euphoria over short-term TARP "profit"
Today's New York Times trumpets a "good news" headline — As Banks Repay Bailout Money, U.S. Sees a Profit.
The profits, collected from eight of the biggest banks that have fully repaid their obligations to the government, come to about $4 billion, or the equivalent of about 15 percent annually, according to calculations compiled for The New York Times.
Wow, you think to yourself, maybe this bailout thing wasn't such a bad idea after all! Er, not so fast. That's all the good news there is in the article; the rest emphasizes the downside risks of untold billions in outstanding bailouts that most likely will never be repaid.
All the profits taxpayers have won could still be wiped out by two deeply troubled institutions. Both Citigroup and Bank of America are still holding mortgages and other loans that were once worth billions of dollars but whose revised values are uncertain. If they prove "toxic" because they cannot attract buyers, they could leave large holes in the banks' balance sheets.
So, hold on a sec. We made a short-term profit of $4 billion (on a $700 billion investment). But, "potentially huge long-term losses" loom on the horizon. How huge? The Wall Street Journal noted today that the losses on one pool of "toxic" mortgages is at least $80 billion.
Hmmm. I wonder why the Times didn't mention that? A $4 billion dollar profit, which if I know our government has already been spent and respent, is cause for celebration even though it's about to be swallowed up by a looming $80 billion sinkhole of bad debt? Who are they kidding?
(via Memeorandum)
Posted at 15:52 by Chris Wysocki
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