From the Speak Truth to Power Department
, on CNBC: ""Every industrialized nation is putting a lot of supply on the market because they all have , whoops I'm not supposed to say insolvent banks, they all have banking issues."
And there it is in a nutshell. And they are not insolvent because of subprime mortgages - it's because they all covered bets on 50-1; 100-1; 1,000,000,000,000 - 1 odds and now the bookies can't pay the winners. (And trying to get the dogs who lost the race to pay up was never a feasible strategy.)
Natl Restaurant Association reports the Restaurant Performance Index at an all-time low. The surprising news in this story is that only 42% of restaurant operators claim the economy is their #1 challenge. God only knows what the other 58% think their biggest challenge is.
News alert: Journalists doing their job! Bloomberg sues the Fed to reveal securities they are accepting as collateral on behalf of taxpayers.
FDIC reports 2 more bank failures - in Texas and California.
And on the heels of Friday's jobs report, the LA Times reports seasonal hiring is down, down, way down. To sum up, retail managers expect to hire 33% LESS this season. Ho, ho, ho.
The biggest story you may not have heard - the DTCC (Depository Trust Clearing Corp) very quietly started publishing results of the CDS trades they clear. Note: DTCC only clears a portion of the CDS market, which is unregulated. It is so unregulated that no one knows what percentage of trades the DTCC is clearing. DTCC covers $40-50 trillion so it in my opinion that they clear a very small portion. I recommend reading table 6: top 1000 entities with CDS exposure. Gives you an excellent idea of the next group of companies/nations to go under.
In the desperate times for call desperate measures department:
GM CEO Rick Wagoner on CNBC with Phil LeBeau, in response to a question in effect asking "why don't we just let you losers go under?" responded "Letting GM go is a terrible idea. Look at the effect of Lehman Brothers." [Emphasis mine.]
From my seat, that is the one Wall St entity the taxpayers didn't rescue. (Bear Stearns was sold to JPMorganChase, and the taxpayers got stuck with BSC's toxic paper.) What Wagoner didn't mention is that the production workers are still going to lose their jobs and maybe their pensions even if Washington bails out GM. So yeah, , I'm good with you losing your company and for good measure, doing a stretch in a Detroit jail for malfeasance, fraud, etc.
And finally, from The Real News Segment:
The latest rumor has (GM) trying to land 19 year old phenom Dayan Viciedo for 3B. (In case you didn't hear, Sox wished good luck in his future back surgeries.)