House of Paine

big ben poises the clamps

  talk about transparency

how 'bout

 talking 
      
        micro regs 

                 publically .....


==========================================


 
 ask yourself this question
how can a fedskin

hault this flood of junk mortgages

 thrown up into the securization  
                          hay loft 

that is without 
  using the policy  nuke
  a huge  jerk  up 
in the interbank rate 

sure to frazzle  
the whole credit system 

and goose the bush recovery 

here's the story  per 
  nyt :

 mortgage  orignators 
today
   can  initiate 
      ever  "riskier loans "
 
  because 
our innovative financial system
     has
 "developed techniques "
 that make  it 
       "far easier"
  for originators
and any banker 
           up the line
      " to shed 
          vulnerability "
                  to default  risk

 how ?? 
by shifting it
       onto the shoulders
               of
    "sophisticated  debt markets"

markets that issue securities
backed by hugfe bundles of mortgages
and thus 
 allowing
        " thousands of individual investors
 to purchase a small slice of"
                     each  original loan
                   and with it
                    " an equally
                      small slice
                         of each original  risk" 

pretty obviously 
 
"this  latest system "
(now well over twenty years old  btw)
           has all the  right incentives
 to  generating  total junk 

and 
yes thats what its doing  

enter 
 Senior  Bernanke

his intended  response 


 " use  regulations "

 deftly  apply some

 sector specific  " microregulation "

 


    next thing you know 
gentle ben
will be revealing the real
crdit crunch  magillah 

  the  stand by 
              
                macrocompactor...

                    bald  faced
                    unit and amount
                           allotments
 
                          not just
the every day reality 
  of
lender by lender 
   rationing  

but total system wide 
       top down
  straight from fedskin   central 
rationing 


 the final  firm by firm solution
to all amoak  credit houses 
the one 
that only kicks in....
            to trigger 
                  a  major financial  emergency