Bad
Boys with the Pen
I find it absolutely amusing that my friend W. Bishop Jordan’s Barn Yard Chickens appears in the same week as Antony P. Mueller’s Mr. Bailout at www.mises.org. Our Realty Reality Guest Author and Mr. Mueller are real “Bad Boys” in our view for knowing how to follow the money from Main Street to Wall Street and the Great Hall of Market Chaos in the Secret Temple of the Federal Re$erve. Bishop’s observation that the chickens are running around on the decks of the RMS Titanic, never staying on one side or the other [to keep the RMS Titanic from listing to starboard or port, is something I have felt in my gut], and the main reasoning I have converted to a “cash treasury position” in all of my managed portfolios – our Chump Change cash in money market mutual funds – that Franklin Delano Raines likes to siphon money off the top to grow his “shareholder value” – filling his million dollar bonus incentives to grow Fannie Mae shareholder value each year. Maybe Raines will adopt me and buy me a new 7-Series BMW? Barn Yard Chickens is my featured raison d’être here at Realty Reality for this essay on the GSEs…. Author Mueller’s Mr. Bailout – my second and the work of Doug Noland at Credit Bubble Bulletin is the third. From Mueller’s Mr. Bailout: Under Alan Greenspan's rule at the Fed, the function of the central bank as a bailout institution has experienced a new golden age. As head of the Federal Reserve System, Alan Greenspan has earned the highest esteem from the central bank's main clientele. The adoration that the chairman has earned from the financial markets and the various governments by which he was re-appointed a total of five times has come mainly from the expectation that he would stand ready as their bailout man. Truly a Sorcerer or just a mere Sorcerer’s Apprentice? Just an Imperial Vizier or a truly Empirical Imperial Vizierial Wizard? Time will only tell!
However, I suspect a lot of these Barn Yard Chickens may have already had their necks rung – and they may dance around for a lot longer than anyone might anticipate, since their lungs can probably still get Oxygen – Zoologically speaking. If all the chickens can do is to go to one side of the deck, while knocking the deck chairs askew and the boat tips, they may even slide off the decks into the chilly North Atlantic before they expire just because of a shattered spinal chord and a broken neck. The hypothermia of the North Atlantic is sure to cause a Fowl Demise! One and all can be rest assured that more will most likely be revealed at Fannie Mae [our next Long Term Capital Management or perhaps our next Enron?] when they come under the Zoological Congressional Microscope. Gee, I wonder if Mr. Raines and his accountants for Fannie Mae have looked at the Embryology of an accounting footnote? Humm... I wonder if these Rascals understand the Histology of Cell Division and the Mitochondria of Fraud? Perhaps, these Beautiful People will find themselves wrapped up in a double helix of the RNA-DNA fingerprint that even the FBI can read in their electron microscope? Perhaps Chuckie Chuck Greener, and Raines's other subordinates [partners in high-jinks] need to revisit Parasitology 101, and learn about Tapeworms, the US Constitution, and how to kill a Tapeworm - Better living through Chemistry! With these cooks in the kitchen stirring the primordial soup around, we can only surmise the types of "financial critters," perhaps Frankensteins - our fabulous Chefs at Fannie Mae have concocted with their other fudge candy? All
You Need... is a Little
Illumination – or the light at the end of the tunnel? Understanding the accounting problems at the GSEs right now, for our favorite fudge candy, Fannie Mae [FNM], being criminally investigated [See: Wall Street Journal, September 30, 2004 for Fannie Criminal Probe is Launched] places extreme risk on the process of money market fund intermediation [described by Chris Mayer in Bubble Blower we used in one of our 4Rs] that Doug Noland identifies so eloquently in his Credit Bubble Bulletin at www.prudentbear.com. This is the GSEs' ability to go to Wall Street mutual fund money market accounts to tap these funds, selling them bonds and other gimmicks/instruments [(which are represented to be cash investment accounts to investors by their respective brokerage houses) with a stable NAV of $1] – this is the process of money market fund intermediation [acting as a central bank to create more real estate loan money (ehh, and perks to Raines and his partners in high-jinks)] out of thinner air with no fractional reserve lending limits, while the Federal Re$erve and these “wink-winks” look on favorably at real estate mortgage backed securities manipulated by credit scores and inflated realty valuation appraisals, since all real estate markets are local, thus cannot be a markets bubble. Who’s the Huckleberry here? Certainly not CNBC and their Beautiful People Airheads – who confuse Cat Stevens with Franklin Raines when they start talking about fudge candy!
In our view, this places all mutual fund money market accounts with exposure to the GSEs at extreme risk. This of course is a no-brainer when one has written The Toy Boys of Fraud, identifying how the lender pipe food chain works and how the banking cartel controls the realty valuation industry to pump real estate market prices. Mutual fund money market accounts, if not linked directly to treasuries only, generally contain 40-60%+ GSE exposure based on our research – tenuously at market risk, in our view. The High-Jinks of Hoodwinking 101 That’s why I stay clear of these truly “non cash on cash money market funds,” because they are not all in cash, and their NAVs can get tanked by the GSEs in the name of the game is bailout [Fed acting as the lender of last resort in a GSE Derivative Banking Crisis]. This is what we call Hoodwinking Investors 101. When one gets right down to the nitty-gritty, this is pretty similar to coin clipping by the Roman Emperors and other various and assorted Kings and Queens [and American Presidents]. No, it isn’t a very pretty picture to have $100,000 “supposedly safely parked” in a money market mutual fund account and then receive a letter the next day from your Wall Street investment house that informs you, the investor, that “your NAV in your money market fund linked to the GSE industry is now only 50 cents in NAV – Gee Whiz, we are so sorry!” Don’t expect the FDIC to bail out the investors, since most of these rascals have no FDIC protection – besides the FDIC is broke anyway. Let’s see how they do in a major bank run! If your mutual fund money market account has a stock symbol, investors can find out their fund’s core top holdings at www.morningstar.com. If your “parked money market fund cash” is in an annuity [Ooops, why did you do that?] with no fund symbol, the investor had better call the investment house or look over their prospectus.
For those die-hards, who cannot see a real estate markets bubble in the USA, I suggest you look at the perks and bennies that the Top Dogs and Top Kats at Fannie Mae have been getting in their accounting footnotes for the past ump-teen years [Since the S&L Bailout in the late 80s/early 90s and the Fraud of Realty Valuation Regulation, FIRREA 1989 perhaps?], then take out your .45 Colt revolver and shoot yourself in the foot [or your Gonads, I don’t care! – Make My Day! – Zoologically Speaking!]. Smelling the Coffee, Voting With Your Money! Or Just Break Out the Prozac! If investors are really awake, smelling the coffee, and believe in voting with their money like our friend, Lady Catherine Austin Fitts, a former Assistant HUD Secretary, who identified the Fraud at HUD [See Ole Bear Commentary at 4Rs] – they would bail in a heartbeat to treasury only money market funds and reduce their portfolio risk, before all the chickens land on the other side of the RMS Titanic, perhaps just sliding off the decks before their Option Expiration? – with the Imperial Empirical Vizierial Wizard having to bail out Bank of America, AIG, Goldman Sachs, the Bank of New York, and JPChase Manhattan [and perhaps a few others on the short side of the GSE counter-party derivatives? – Washington Mutual? Countrywide? Wachovia?] – just a friendly GSE Derivative Banking Crisis with the Federal Re$erve as the lender of the last resort. As John Dizard sees it in Alarm Bells Sound for Fannie and Freddie the Federal Reserve won't actually be bailing out the GSEs.
Of course the great disconnect here is the fact that all global financial markets are inter and intra-related. We follow www.gata.org and the Gold Derivative Banking Crisis. Using the relationships in Gibson’s Paradox, the Gold Cabal has been able to hoodwink Jane and Joe Six-Pack into believing that their real estate, which will always appreciate in market price, is the next best thing since sliced Wonder Bread [which just declared Chapter 11 by the way] and that heavy metal, Au and Ag, or gold and silver bullion, is not fiduciary money, and should be steered clear of – favoring legal tender fiat paper funnie monie created out of thin air by the FED [along with current market prices in real estate both courtesy of the friendly banking cartel and your favorite GSE]. When folks truly
understand that their real estate has not been increasing in price
because of real micro market forces that impact price,
and that their real estate increased in price because of the FED
destroying the money system, and that the Bastard [bloated, false,
spurious] GSEs “hepped” inflate all that real estate using the
credit score and its banking cartel control of the real estate valuation
profession…. I call it Global Lender Monopoly! Welcome to my world of Blitzkrieg Financial Warfare! Heavy metal and real estate are so entwined – Mr. Greenspan understands this fact – so do I. Merci Beaucoup, Franklin Delano Raines, for a fine mess and destroying my realty valuation community in the process of your million dollar a year bonuses and perks! I just contacted Dean Martin in Heaven...and he’s ready for another “Roast.” Dean says: “Welcome to my world!” – “Won’t You Come on In?” Gee, Whiz! I love flying roast pigs! When it Raines, it Pours! As Stan Laurel says to Hardy: "That's a fine mess you got us into, Ollie! -- Who's on third?"
Since leaderships in major appraisal ruling, centralizing, and regulating [mind controlling] foundations and professional realty valuation organizations [using the Delphi Technique and Principles of Cognitive Dissonance on their memberships] have been playing second fiddle to the banking cartel since the implementation of FIRREA 1989, the mortgage industry through the use of the credit score panacea, drive by appraisals, no appraisals, 2055 appraisals, electronic email transmission of appraisals [EDI], other such gimmicks, national comparable databases, and the AVM [Automated Valuation Model], the whole mortgage backed security industry [which is really Big Business, Folks!] is sitting currently on a dunghill of AVMs and other poor quality realty valuation work. This not only adds to the woes at Fannie Mae, but every other GSE as well. Who’s been asleep at the switch? Certainly not Raines, nor Chairman Greenspan and the Fed Governors! – Jane and Joe Six-Pack on Main Street America have been asleep at the switch in the illusion that they are growing their wealth through real estate and all that increased debt. However, it does seem that the lights went on over at the FBI. We also find the other Foghorn Leghorn Barn Yard Chickens -- still smokin’ their cigars and having their brandy in their leather chairs in Chicago – mandating dictates at Pabulum, Delphi Scams, and other Cognitive Dissonances -- to persuade a complete good ole boy and ole gal fraternity of real estate valuation professionals to become caught up in the scam of the Federal Re$erve and their crooks at the GSEs prostituting the real estate valuation principles in the United States of America. It seems to me, a long lost resolution – the Resolution Trust Corporation. Well, perhaps a lost resolution until these Barn Yard Chickens in Chicago get their necks eventually rung in the demise of the GSE banking cartel trust as well. Some resolution, hummm? Colt .45’s are also a quick fix for Option Expiration when self-inflicted! Denouement for the Bad Boys – or Just a Full Broadside at the Investment Community?
Fin Ole Bear, Editor © 2004 Realty Reality |
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GLOBAL
REAL ESTATE MARKETS FORUM
Lack
of Oxygen or an Experiment in Hypothermia?
I
love a straight shooting Colt .45 or 
Gold
Derivative Banking Crisis, GSE Derivative Banking Crisis
[while
lining their own silk pockets at the taxpayers’ expense]… We have
the makings for the Greatest Real Estate Markets’ Depression mankind
has ever seen on the Entire Planet.
Our
gracious thanks to Mr. W. Bishop Jordan, Mr. Antony P. Mueller, and most
assuredly to the great work of every Prudent Bear’s Prudent Bear, Mr.
Doug Noland at Credit Bubble Bulletin – for their pen – and their
wisdom. There’s a lot of smart people in the world… one just has to
know where the Charlatans really are! Your essays, Gentlemen, are a full
broadside at the realty valuation professional community to finally take
a stand for Liberty and the US Constitution! Investors need to be aware
that their money market mutual funds, unless in treasury-only paper, are
most likely exposed to the accounting tricks and gimmicks, Top Fat Cat
year-end bonuses, and other accounting footnotes at Fannie Mae [and
probably the other GSEs] because of the process of money market fund
intermediation [laundering],
