“Hope that the problem will go away or fix itself.”

Delay is the only solution they can agree on. Everything else admits failure.

Failure in regulation.
Failure in oversight.
Failure in recognizing that they had let Wall Street construct a house of cards so intertwined that all the players had to be bailed out.
Failure to protect the homeowner (home debter).
Failure to protect the 401Ks that had replaced the pension plans of old.
Failure to protect the suckers that bought what Wall Street sold.
Failure to protect the dollar.

These were the “Friends of Tony Mozillow” who got special deals on their home loans.

Did you think that the rules of FASB 157 and Basel II would be allowed to expose the Enron like carnage that has occurred?

No way! There are other rabbits that will be pulled out of the hat before the first Tuesday in November.

After that, the sky will be falling.

God help the next president. I wish him well, whoever he may be.

I don’t know if this statement is true, but I trust if Roubini said it then it must be. All of this L3 and off balance sheet paper is growing at an ever alarming pace. If some of these lenders are forced to take this sludge back onto their books they will almost instantly be underwater themselves by the looks of it. The FDIC would equally be underwater and everyone would need to be bailed out at the same time with no money left in the till to do so. Fannie and Freddie will see to that pronto as they are ever so close now to sucking a quick 50 Billion or so in my opinion from the American Tax Payers.

Here is Roubini’s quote and it is rather ominous to say the least!!!

Professor Nouriel Roubini of New York University, one of the first economists to warn of the dangers of the American house price boom, believes the number of people positively choosing to walk away is growing rapidly.

“This is becoming a tsunami of voluntary defaults,”

“The losses for the financial system from people walking away could be of the order of one trillion dollars when the entire capital of the US banking system is only $1.3 trillion.

“You could have most of the US banking system wiped out, so this is a total disaster.”

Now, since september 11th, ENRON accounting practices are accounting standards at Fannnie, Freddie and ah yes, the United States of Debts. Like I said no problemo Truth Doctor.

“If the lie is big enough, and you repeat it continually, they will believe it.” Goebbels. That’s what Paulson, your politicians and the bankers are doing.
I is partly working. I am impressed.

Numbers or the reality of numbers are unimportant for them. You listen on TV these politicians saying that the losses of Fannie and Freddie are just 25 billion and you know that ANYTHING goes, including changing the accounting rules. What rules anyways ?

By the way an amortization on 25 years for the whole and hole mess would be a good idea. Seriously. These people do not intend respecting GAAP standards or audited accounts. Why would they anyways ?

Fundementally nothing has changed in the USA since ENRON, Arthurs Anderson, the Internet bubble, PARMALAT or Tyco. Nothing. Yes. It’s far worse than in 2000 !

Go crawl back under your bridge, troll.

Recall the sharp downdraft when the first wave of AUDITED financial statements after the subprime crisis hit most (not all!) radar screens last year.

Then the accounting games began with the quarterly reports, many of those games highlighted here in this blog.

If I can’t convince you, touch base with me in February 2009.

Tony

Having the auditors around is a bit like having the FBI over for dinner. Nobody particularly likes them. And with the FASB tightening up, there is sure to be lots of blood on the floor early next spring.

More than half of it is a function of the calendar.

Tony