Sheesh

I guess it's time to re-post my photochop from the original TARP.  We have some new and improved idiocy to take into consideration as well as older information.

• Bank of America gets $135B backstop from the Fed.  Taxpayer is already losing $6 billion in 6 months on Bear Stearns assets parked in the Maiden II fund setup by Treasury.  Bank of America will double those losses, at a mimimum, after the Merrill and Countrywide toxic waste is moved into the Maiden II fund.  We haven't even put Citi's garbage in there, YET.  They only had about a trillion in off-balance sheet assets before this party ended.  Remember, there was a good chance the taxpayer makes money on this plan...
  
• Senate approves release of unspent bailout 
• The bailout for state and federal pension funds haven't even begun.
  
• Commercial Real Estate is just starting to implode.  Bye-bye regional banks.
• We only get back 50 cents in positive GDP for every $1 of debt we are taking on now.
  
• Paulsen, when at Goldman Sachs, had the "shackles of leverage" removed that was limiting the investment banks from going over a 12 to 1 leverage ratio.  Once that was done we had Bear Stearns leveraged to 40:1 before it's blow-up, Lehman 30:1, etc...  
• There was "only" like $60 trillion in derivatives globally.  What's a mere 20% loss on that look like?  If you are leveraged 30:1 and you take a 20% hit you are insolvent.
• You were being told this is a crisis of confidence.  It's a crisis of garbage.
• Trichet Vision Unravels as Italy, Spain Debt Shunned.  Here is excerpt from a previous post 'EURO: Dead man walking'.

``I've long felt we would see a turn in the USD once Trichet realized the deflationary forces at work.  His single mandate of price stability will need to be revised in short order.  Obviously the cat is out of the bag now as the Euro has broken down and out.  It's this very reason the USD has shown strength despite what most call "printing" in the US.  There will  likely be periods of every kinds of 'flation thrown into the mix due the inevitable fiscal policys, rate cuts (taxation without represenation) and stimulus packages, but the overall trend will continue to be deflation.  Re-inflating the largest credit bubble in history is an IMPOSSIBILITY.  Bottom line is that the amount of "printing" is far less than the money being "lost".  But I digress.''