Very concise and incisive.

The only thing I would add is the 2.4% drop in crude oil demand in the US already being witnessed as reported by the American Petroleum Institute yesterday is at a level only seen in deep, not shallow consumer-led recessions.

Let's get this ticker out to the world folks!

A couple of questions:

Regarding business credit you say

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Don't believe the BS you hear on CNBC - look at the bond ratings, they don't lie.

-- are the business side single company/bond ratings better than the CDO MBS etc ratings that have been so wrong?

What does the term "overcenter" mean?

Well let's put it this way Anti - the percentage of corporates rated "junk" is higher than at the entry to any other recession in history.

If they're off, it ain't being pessimistic, eh?

"Overcenter" means that loss in the bond market leads to more selling which leads to more loss.

A very disorderly unwind.

Fax the ticker to your Congressman. It only takes a few minutes of time.

Sam Hill...not Sam Hell

MCO (Moody's) 45.01 +.52

Kinda hard to understand because their business model looks broken to me.

What I wonder do you charge to rate securities to be TAF-ready?

Well done- I agree that unfortunately we are going to see your predictions realized. California has an economy the size of France and this place is going to implode. Real estate based growth over the last couple of decades is unwinding quickly. Individuals, companies and municipalities are all going to have severe financial stress and many will default. Decoupling is a myth- the US is simply too important in the overall economic scheme of things.

Yeap.

Gen, the Germans have a word for the current state of our economic system--

Raubwirtschaft - plunder economy;******and pillage economy

One small note. The toxic tranches at the Fed aren't zero - they have negative value. Much like if I dumped a load of mercury, cadmium, or lead in your front yard.

And it goes to and reinforces your point on lack of transparency (and on this I wholeheartedly agree with you).

These securities are an endpoint of a complex network of transactions. Value them? It would take a lot of time (and money) to audit just a small number. After peeling away three or four layers you might find out a percentage of defaults.

At least with Treasuries, it depends if the US is bankrupt. One entity. With these things, - maybe one of the others on this forum could trace exactly what would be involved with putting a value (or for that matter even finding out which account they point at to determine if the homeowner payment stream is still coming in at 100%, or what it is coming in at).

It is still a game of "Pretend the horse is still alive but don't look in the trailer" - and ignore the death-rattle and that stuff oozing out...

Even were they to take Citi securities, there is a market value on them. Or Citi would be bankrupt. But zero is still a fixed value.

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There will be talk - if not outright action - by consumers that will border on a revolt against the fraudsters/bankers.

Bull****.

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Do not count out the people if they truly get*****ed off!

100% Bull****. They are going to be squicked hard and fast. Think '92 riots with actual ****** hating cops around who want to see them suffer.

J. P. Morgan wrote..

Capital must protect itself in every way... Debts must be collected and loans and mortgages foreclosed as soon as possible. When through a process of law the common people have lost their homes, they will be more tractable and more easily governed by the strong arm of the law applied by the central power of leading financiers. People without homes will not quarrel with their leaders. This is well known among our principle men now engaged in forming an imperialism of capitalism to govern the world. By dividing the people we can get them to expend their energies in fighting over questions of no importance to us except as teachers of the common herd.

It is too ****ing late. Chaos theory *******n it!

Karl, regarding the bank holiday. Is there a way to withdraw without taking cash?

Perhaps customers can purchase a money order so they don't walk around with a sack full of cash and put themselves at risk?

Wire it to Treasury Direct

Holding and waiting out REO's is going to be one screwed up mess Karl! That will be one hell of a loss for the banks if you ask me, especially those that were foreclosed on in the past year...unless you got a "special person" on the inside to help you out! LOL!

That's what they're trying to do Champ.....

It is a huge ****ing mistake, and if it doesn't get stopped its going to result in 5x as many bank failures as would otherwise occur.

KD if you wire it to Treasury Direct then they take securities backed by motorcycle loans as collateral and just lend it back to the banks. ;)

Good point

The ECB has uncovered gambling in Casablanca. The central bank is shocked to learn that banks appear to be originating crappy assets solely for the purpose of dumping them in a liquidity facility intended to help them through a rough patch, not to provide an ongoing subsidy. - Yves Smith.

If this June 5th event gets traction, it will be stunning.

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the Germans have a word for the current state of our economic system--

Raubwirtschaft - plunder economy;******and pillage economy

That's EXACTLY what this is.

Leave it to the Germans to name it.

Genesis wrote..

Otherwise, I hope you like $4 or even $5 gasoline, because you're going to get it.

I presume that's per litre. ^_^

(Seriously, regular unleaded today is around US$3.93/gallon around here. Low $3.87, high $3.96.)

Contacted my worthless POS senator and congressman again. I demanded action now (again) or they lose my vote along with all incumbents who refused to act. Every ticker is going to these assclowns. Do you know what my Senator Arlen Specter waistes his time on? Wait for it.. The ****ing New England Patriot Spygate tapes. Ok, I won't wish the cancer to spread. That would be wrong.