Roy Orbison – You Got it:
And if you did all the right things? You got it, alright…
But hey, markets are up a little this morning and we FAILED to confirm a new DOW Theory sell signal by a whole .31 on the DOW. Whew, that was a narrow escape, because for a second there I thought the markets were in big trouble – LOL!
Dang, I can really be a sarcastic SOB at times! I like to think that I’m just a product of my environment…
Today’s the day we get to see if Geithner flops again. We already know that we’re talking about $50 billion… That will be shared amongst how many homeowners? Ha, it’s a pittance compared to the vast sums given (oops, I meant “loaned”) to the relatively few bankers (we’re all going to “make money” from that, after all). So, after today we will have 2 of the 3 Obama/ Geithner save the world proposals out there. Oh, wait, actually it’s already 3 of 3, remember? Geithner already announced the save the banks plan, remember? How did that go? Funny, but I can’t really seem to recall anything happening besides the stock market going down?
There are going to be 5,000 Goodyear workers who won’t have jobs soon, good thing that housing starts fell to the lowest level on record – down 17% last month – because there certainly won’t be demand for them. Seriously, the fact that building is grinding to a halt is a good thing – the best real economic news I’ve heard in quite some time – no really, I’m serious. And if you work in the construction industry and hate me for saying that, well, think of it this way… your job only existed because of bubble economics to begin with. There, does that help?
Oh wait… Breaking news… it’s not just going to be $50 billion for housing – there’s another $200 billion for backing of Freddie and Fannie debt! Niiiice. That’s what we need, more money for loans to keep homes unaffordable. Let’s just keep the present system going on forever and ever, with never ending increases in size… that’s the ticket, we should do that because the securitization of debt process has worked out so well so far.
But we’re going to show the banks! Also just announced is that any FUTURE recipients of TARP funds, MUST loan money under the new housing bailout rules – whatever those are. Saved again.
Oh, and remember the MBIA debacle? They’re still alive and kicking, heck, today they just announced that they are going to split off their bond insurance business from their toxic mortgage derivative insurance business. AND OUR GOVERNMENT IS GOING TO LET THEM. Any bets on what happens? Uh, huh, future bankrupt the bad business and allow the crooks to operate the good business. If I were a creditor, I don’t think I’d be too happy with that, and I know that if I were a government regulator I would never let the corporate shell game happen in the first place. That’s just me.
MBIA Splits Off Municipal Bond Insurance Business
By Shannon D. Harrington
Feb. 18 (Bloomberg) -- MBIA Inc., the world’s largest bond insurer, will split its municipal bond insurance business from the mortgage-related debt guarantees that led to the loss of its top credit ratings last year.
As part of the restructuring, the stock of MBIA Insurance Corp. of Illinois was transferred to a new holding company, Armonk, New York-based MBIA said today in a statement. The new unit, expected to be renamed National Public Finance Guarantee Corp., will seek approval to move to New York from Illinois, the company said.
“This new business model will not only preserve the interests of both our public finance and structured finance policyholders and enhance value for our shareholders, but will benefit the U.S. public finance markets as well,” Chief Executive Officer Jay Brown said in the statement.
MBIA ceded its municipal insurance business to the new unit, originally acquired in 1989, and transferred a portfolio of about $537 billion in guarantees to National Public Finance Guarantee as of Sept. 30.
Did you catch their motto? “Wisdom in Action.” Yep…
At any rate, the oscillators up to the 60 minute time frame need a break, so we’re going to move up/sideways until they’re satisfied and then we can get on with the rest of the current down trend.
Appreciate the input and teamwork on the threads… please share you best charts, we always appreciate those too. Don’t forget to check Doc’s thread for the pure technical charts…