do you really think, 700 billion can stop this? if you do not read the answer?
The proposal before Congress for a mega-bailout 700000000000 $ is far too little to the damaged debt and derivatives, repair … and at the same time, too much for investors and taxpayers, have to put up the big Geld.Wie is really the problem? In the past, Congress has repeatedly asked us for data and analysis on these issues, we have before the Congress and white papers provided. In the same tradition, is less than a first partial draft a white paper, we present in this issue: Why is the amount of the mortgage loans and derivatives crisis overwhelmed the plan of 700 billion rescue discussion Congress (partial first draft of Weiss Research Submissionden Congress and Federal Banking Regulatory Commission) announced last week the chairman, the finance minister and chairman of the Federal Reserve believes that Congress must at the root of the debt crisis United States and offers a total solution that really brings the crisis to an end kommen.Doch the magnitude of the crisis, mortgages, other debts and derivatives clearly overwhelms the proposed bailout $ 700 billion during discussion. To better understand the problem …
First, we urge members of Congress to collect data on the list of troubled banks by the Federal Deposit Insurance Corporation (FDIC) FDIC retained list has only 117 basis ignorieren.Die 78 billion U.S. dollars to institutions with assets. But given the current proposal of 700 billion U.S. dollars rescue package, it is clear that government officials tacitly recognize that the FDIC list underestimate the problem. There are many other financial institutions in danger or need help with their most toxic Papier.Wie many? We believe a more accurate number comes from our analysis: (a) risk derivatives supported by large banks, (b) the mortgage portfolio of the largest regional banks and (c) all banks and credit of Savings with TheStreet.com ‘s financial strength rating of D + (weak) or less. Based on this analysis, we believe: 1,479 FDIC member banks are at risk of failure with total assets of $ 2400000000000.Darüber of 158 savings institutions and loan risk with U.S. $ 756 billion in total Vermögenswerten. In banks and S &; Ls at risk assets of $ 3200000000000 or about 36 times the assets of banks on the FDIC Merkliste.Diese numbers alone show that the 700 billion dollars could be envisaged to the rescue Congress should seriously consider unzureichend.Zweitens heavily on developments in the second quarter, the Federal Reserve Flow of Funds report Report.In Posted on 18 September, just a day before the president announced that the administration appreciates 700.000.000.000 proposal $ bailout, the Fed, the mountain of the nation’s interest-bearing debt of $ 51000000000000 now, it provides additional knowledge gewachsen.Darüber critical width of the debt problems of the nation, as follows: 1 property residential mortgages has spread in many different sectors. It $ 12100000000000 by mortgages on single family homes in the United States. But are not limited by banks and S & Ls. They belong to a variety of institutions and individuals who may have similar claims to federal assistance verbreiten.Insbesondere … 2 Fannie, Freddie and GSA are still in danger. As a first priority, the plan would be the recently announced rescue plans for Fannie Mae and Freddie Mac to extend it to properly secure the residential mortgages by government-sponsored enterprise (GSE) and agencies (GSA) in place. These now total $ 5400000000000 after Fed.Plus … 3 Private sector and local governments also own residential mortgages in substantial quantities. The rescue plan also includes: investment banks and others, the issuance of asset-backed securities, now holding $ 2100000000000 mortgage, non-banking financial companies (426 billion), credit unions (332.4 billion U.S. dollars), the state and municipalities (159 billion U.S. dollars), the life insurance companies (61.6 billion U.S. dollars), pension funds more … private pension funds and government budgets sich.4. Commercial real estate is now less than good. The current debate seems only to residential mortgages. But many regional and national banks, most of the current risks in the mortgage business, where recent data denotes many of the difficulties the same as in the housing market. To really get to the root of the problem, they can either Congress is not auszuschließen.Es 2600000000000 $ in commercial mortgages outstanding in the United States. As with residential mortgages, they are also scattered on the banking sector – $ 644 000 000 000 by the issuers of securities backed by assets instead of $ U.S. 263 billion by life insurers, 65 billion dollars for non-banking finance companies and $ 37 billion of real estate investment trusts (REITs) .5. Mortgages are less hal5. Mortgages are less than half the problem. While the current debt crisis in America originated in the mortgage market, it is not correct to say that is the root of the crisis in the sector one strictly. Instead, the debt crisis in many and varied roots, with excessive risk in credit cards, auto loans and virtually all other forms of private Verschuldung.Derzeit ago 14800000000000 $ in mortgages in the United States. But beyond mortgages, there is another $ 20400000000000 corporate bonds and consumers. This means that only 42% of problem mortgages of private debt in America vertreten.6. Local governments are a higher priority. With regard to the debt problems of state and local governments would also be a serious mistake. In fact, the nature of their services, including where they play a central role in homeland security, one might say that their credit challenges priority estimates banks, S & Ls and Wall Street firms werden.Derzeit the Fed $ 2700000000000 in local elections in circulation, most of which have been given instructions to apply for deposit insurance, said bleibt.Kurz on the verge of collapse, to really get to the root of the problem as President, Congress would rescue plan for too new field more than the banking sector decken.Drittens we ask Congress for a better grip on the huge backlog of products in America, beginning with a thorough review of the quarterly report of OCC on the Commerce and derivatives activities, derivatives of the first quarter 2008.Obwohl was originally designed to reduce risk, it is generally accepted that their volume and use of extremes, as it were been made since, but the speculative paris greatly increase the risk of systemic global financial Märkten.Und, although regulators have few details of these derivatives indicate that most officials now realize they may be the cause of thBeamte panic now that they can cause the panic that has spread throughout the global banking system in the wake of the bankruptcy of Lehman Brothers on Sept. 15 began sein.Daher must by all members of Congress to that block, with possible renewal waves is heard worldwide panic, the bailout would be at the following facts: the notional amount is required (nominal) amount of derivatives by U.S. commercial banks 180.3 billion. $ 000. Credit risk derivatives (partners of commercial credit risk) is 465 billion dollars, up 159% compared to banks Vorjahr.US the largest credit exposure from derivatives HSBC (with $ 7.21 to the dollar in the risk of capital), JPMorgan Chase (with $ 4.11 of risk on the U.S. dollar), Citibank ($ 2.79), Bank of America ($ 2.15) and Wachovia ( $ 0.77). Further, after Bank of America merged with Merrill Lynch, reported $ 4,000,000,000,000 in derivatives, and maintains martin for a possible merger with Wachovia Morgan Stanley, $ 7, $ 7,100,000,000,000, says it is likely to increase demand werden.Der Congress should conduct its work with its eyes open, realizing that any rescue plan does not contain such banks and other players in the vast market for derivatives has a gaping hole, propagated by the financial panic können.Viertens leave again for all these debts and derivatives, a bailout that would require under normal circumstances (a) a realistic estimate of the amount already delinquent or in default, and (b) a reasonable estimate of how many more will probably enter a prolonged recession schlecht.Doch the only estimates currently available are those who recognized their real depreciation of major global financial institutions – over $ 500 billion. $ This figure does not include the thousands of other institutions, which are among the sectors we cite above or losses, but not yet properly accounted -. let alone losses not yet incurred sind.Bisher keineBis today is not a government agency, estimates. But without them is not a budget for this rescue mission impossible. Nobody will know that in hindsight, if the bailout actually removed from the hatching of the cancerous debts economic body or leaves sum most of them and verbreiten.In should not imagine that the estimated 700 000 million U.S. dollars may actually proposed by the administration, even close to offering a comprehensive solution to the current American crisis of debt. It may well be a drop in the bucket sein.Too Much, Too Soon for U.S. government securities markets should not the illusion that the market for U.S. government bonds, the additional burden of a 700 billion bailout without traumatic consequences $ absorbieren.Im fiscal 2009 Mid-Session Review, Budget of the U.S. government, the Office of Management and Budget (OMB) projects the deficit from 2009 to 482,000,000,000 dollars this projection was steigen.Allerdings gemachtvor rescue of Fannie Mae, Freddie Mac and AIG and the White House $ 700 000 000 000 Vorschlag.Selbst bailout if no budget overrun of 700 billion U.S. threatens to double or even triple these bailouts OMB Staatsdefizit.Das tries his deficit projection of $ 482000000000 stating that it is estimated that 3.3% of GDP, to reduce them as manageable. But after the Addition of the cost of rescue operations and announced proposed – about $ 1000000000000 – the deficit of 8% and 10% of GDP könnten.Kein reasonable person can deny that this dramatic increase in the deficit is a dramatic impact on the Interest levels have. To attract investors, the U.S. Treasury will have to pay much higher price … and these higher prices, which in turn drive up rates for mortgages, credit cards and almost all the light of these facts Kreditaufnahme.Im we have four recommendations: Recommendation 1. Before tinkering with a rescue package of some sectors of the debt markets, the impact of the huge national debt to all sectors of the debt markets and the U.S. dollar. Die proves the story, there was a less dramatic increase in public debt, millions crowded with private borrowers, raises interest rates and severely damaged the economy Ganzes.Also it is reasonable to assume that massive increase in loans for a bailout of this magnitude would be unprecedented upward pressure on interest rates being so required, may complicate considerably the debt crisis, the U.S. dollar sink further damage more to the economy than in the Vergangenheit.Zur avoid these consequences, we recommend that Congress reject the proposed rescue plan administration $ 700 000 000 000 and all files related to the right, moving forward, rather than Our Recommendation 4 unten.Empfehlung No. 2, if it is offered, despite the risk that interest rates much higher and a sharp decline in the dollar, that Congress intended to buy the legislation to create a further loss of the passport authority debt, we recommend that the new agency pay strictly fair value of debt, including a substantial reduction in their liquidity widerspiegelt.Außerdem poor, it must be clear: Given the recent decline soaring market values and market liquidity, most bad debt on the books of U.S. financial institutions now stand at only a fraction of their Nennwertes.Als the government buys these debts at fair value, it will always be Most of these institutions with serious Verlusten.Viele these institutions do not have the capital to cover their losses and, despite the rescue plan. Recommendation No. 3 The Congress should clear the public wants to provide information: There are several significant risks to the financial system DIEESE are several significant risks to the financial system that the government does not deal with the new legislation, including the delay of other major debt and derivatives, which could cause a chain reaction of bankruptcies ist.Ob sufficient legislation to rescue or not the debt crisis of the trunk and prevent financial panic, the government will need to protect their own Credit to prioritize and seek the stability of U.S. Dollars to gewährleisten.Der private sector, which must in turn spread the debt crisis largely without government financial assistance to behandeln.Empfehlung No. 4 instead primarily a safety net for imprudent institutions and speculators, Congress should devote more effort. strengthen safety nets for prudent individuals and savers, including: The FDIC insured bank depositors, but has inadequate funding and staff to manage a large wave that Bankenpleiten.SIPC decktSIPC alleged that covers brokerage accounts alleged but in practice do not compensate the losses of investors in most Fällen.Staatliche guarantee associations, which promise to cover insurance, but repeatedly failed to live up to their promise when large failure scheitern.Ein insurers of the debt crisis in progress and the creation of a new series of crises that spread terror and to extend the pain to resolve: Unless Congress approaches its monumental task with enormous caution, it could produce for the worst of both worlds.
Please advise me on my options. I am a single mother struggling to the point where I do not even know my children to McDonalds. I am recently divorced and has created since the divorce, the following debts (I get child benefit but still): Why Credit 1: $ (pay $ 47 per month) 2334.59 Chase credit card 2: $ ( pay $ 80 per month) 4008.00 Sovereign Bank loan 3: $ 8.560 ($ 179.52 pay per month) Credit Union car loan $ 6964.00 ($ 125.46 pay per month) that I own my own house and pay a mortgage of $ 1,443 per Monat.Der mortgage balance is $ 161,145.00. What are my options here? I wonder if I should sell and buy the house, refinance a building or should I? I’m not particularly happy with the apartment that I have and moving to a condominium are a possibility. I would appreciate your advice, help me to reduce the monthly payment would be. Is it possible that I can payments over a longer period of time, etc. distributed willkommen.Credit advice by qualified staff is good, maybe ausgezeichnet.1 second before – 3 days to respond