On the BSC puts...were everyone up and down the chain paid off (or threatened)? Shoot, reminds me of Mob/Purple Gang work...

Karl, I am not a lawyer but there is something called a Writ of Mandamus which a citizen can file telling a government agency to do its job.

A mandamus is normally issued when an officer or an authority by compulsion of statute is required to perform a duty and which despite demand in writing has not been performed. In no other case will a writ of mandamus issue unless it be to quash an illegal order.

http://en.wikipedia.org/wiki/Mandamus

Any lawyers here?

well Boz......that ought to scare the hell out of em eh ?

I just wrote one myself, but its still sitting on my desk here, I dont know who to send it to ?

You have no idea how bad this is going to get if the CDS fraud isn't unwound now.

I am essentially certain that if its not done before the election it won't matter, and once they go into the July Recess, nothign will happen before the new Congress comes in.

You literally have no idea.

This isn't conjecture. I'm going to leave it at that - for now.

Quote:

I'm going to leave it at that - for now

tease. How long will we have to wait?

Oh, you'll find out but if they don't act on this I won't have to tell you.

a Writ of Mandamus is issued by a court. You would file a Petition for a Writ of Mandamus to get the court to issue one. Under FRCP 81(b), federal district courts (trial courts) can no longer issue them. Only appellate courts can. I don't know about state courts. They'd all have their own rules.

Karl

What do you make of FRE's fair value?

"Freddie Mac now owes more on its liabilities than its assets are currently worth. This so-called fair value of assets fell to negative $5.2 billion from $12.6 billion the previous quarter."

http://www.bloomberg.com/apps/news?pid=2....

And because of its level 3 assets, they can pick and choose which to "fair value" so this is a best case scenario

Go read the previous Tickers; I've discussed Fannie and Freddie at length.

I know, short to zero.

But the question is really, is this a smoking gun or largely irrelevant??

Aren't they actually admitting that they are insolvent?

In the past you were saying it, aren't they agreeing now?

As always KD you are spot on. The really scary part is Ben can do all he wants to play games with the banks but many of these CDS contracts are written on non-financial companies or financial companies outside of the Fed safety net. When the defaults start accelerating in outside of Ben's world the CDS contracts will become a real mess IMO.

Either The Fed and Congress force this **** out in the open NOW or it won't matter.

The underlying credit quality will force asset liquidation and that is exactly what is required so that the banks aren't the ones holding the bomb when it goes off!

The bomb is going to go off. The banks need to be forced to unload this crap paper and take down the gearing on their balance sheet. They cannot wait it out - that will not work.

Worse, Fannie and Freddie's own predictions along with the Realtor's on home price changes over the remaining of the year put the odds of detonation this year at near 100%.

Oh it will happen alright. It will happen at the latest when we know who Volker will have selected as the new Fed chaiman. The ones that survive will liquidate the garbage before it is forced by the new Fed chaiman. The ones with the worst assets will wait until they are foreced and in turn get the worst prices.

The equity markets will wake up to this at some point.

By the end of the year it will be too late.

Congress stops doing business in July.

Either we get on the phone, fax, and airplane if necessary and get this done now or it won't make a difference.

All it takes is one guarantor to blow up, which is almost certain with the predictions from Fannie, Freddie and NAR on home prices before the end of the year.

Once that happens and the credit books are exposed the game is over.

You can't prop the guarantors up as the payments are not optional; the bondholders will demand their money and that's the end of it.

" can't prop the guarantors up as the payments are not optional"


You can by issuing preferreds.

No you can't - someone has to buy them.

Once the first "PMI" type company goes down its over. The credit book goes uncovered system-wide and that blows the CDS nuclear stockpile as everyone is forced to go grab the payments from the swap-writers.

Since they don't have it, there's your default cascade.

Whoever is holding the paper at that point is ****ed. The only way they live is for the banks to get that off their balance sheet before it blows up.

Right now the "prime" paper has a reasonable (haircut, but reasonable) bid. Once that goes uncovered you're dead.

I'll try again, you can if you HAVE SOLD them.

Yes, if they're sold BEFORE the **** hits the fan.

However, the preferreds that have been sold thus far are not anywhere near enough, and by the time the total amount required is recognized, nobody is going to buy what needs to be put forward, as anyone with a $1 calculator will be able to figure out that the odds of the coupon being paid for any material length of time are zero.

Lets just let one little MI company blow up ..................PLEASE. I immediately push all my chips in against FNM and FRE. I'll miss out on the first couple of dollars of decline, but I'll get the last 25. These ****ers are short to zero. I've been on Gen occasionally because HE DOESN'T SHOUT IT FROM THE MOUNTAINTOP. But he will tell you what he thinks of them. Look at all the foreclosure info out there and from what I hear it would be worse if the counties could get the paperwork done. The Fed's will save Fannie/Freddie and they'll save the bondholders but I wouldn't want to be holding the stock, they won't save the shareholders. But when you look at it they might as well. What the hell is another $47 billion when you're talking about a trillion here and there.

My letter has been sent to my congressman again today and a call has been made to his office. Also urged them on another front not to overturn Bush's veto of the farm bill. Another welfare program for wealthy people.

TGIC is pretty close. 67B in insurance in force vs 338M in shareholder equity. Already in run-off. Will be interesting to see if they can wind it down in an orderly fashion.

The unappreciated problem here is that there is no way to fix the problem once the CDS start to blow.

The timer is running out of ticks.

And what would be the best way to play the GSE's to zero? Any thoughts from anybody out there. I'm looking at the FNM Jan 09 22.50 puts for 3 bucks. I think we could see 10 or 12 a share before then.

So if I am understanding this correct, the sequence could be:

Bond Markets Blow up
Stock Markets blow up
CDOs Blow up
Bernanke blows up
TF bears cash out
The Temporary End
The new Begining
TF bears become new bulls.

Quite possibly the best ticker of all time.

Oh, and the "complication" is by design. The PTB know very well what the hell is going on but they purposely try to complicate something that is very simple in order to obfuscate and throw sand in the face of the average JSP. How hard is it to understand that something is not "worth" whatever the hell you say it is if there is no market for it?!?! Anybody can understand this. The problem is, the pigmen don't want the peeps to understand this and they are holding a lot of the cards (but not all.)