Asia stocks, Aussie fall on swine flu jitters

By Eric Burroughs

HONG KONG, April 27 (Reuters) - Asian stocks slipped on Monday as the outbreak of swine flu in North America hurt shares of airlines and transport companies while prompting some market players to trim risky positions, hitting currencies like the Australian dollar.

Japan's Nikkei average .N225 bucked the trend and rose 0.8 percent as drugmakers such as Chugai Pharmaceutical on an expected pick-up in flu drug sales, while banks jumped on news that Shinsei Bank (8303.T) was in merger talks with Aozora Bank (8304.T).

Analysts said the initial market reaction was limited but were wary about the potential economic fallout from the flu outbreak, especially at a time when the global economy is starting to show signs of recovering from a deep recession.

Mexico's health minister said the swine flu death toll in the country reached 103 as fears of a global pandemic grew with new infections in the United States and Canada. [nFLU]

Click here to read more

HELOC can become due and payable

As property values fall, banks are adjusting the available limits to their customer's Home Equity Lines Of Credit. In many cases, if the current balance of the loan exceeds the determined available equity, the bank can demand that the difference be paid immediately. But worse than that, the bank can legally seize, without warning, money from the borrower's other accounts with that bank to satisfy the loan balance. These days there are plenty of reasons not to do all of your banking in one place and this is just one more.

Consumer advocate, Clark Howard writes:

Bank lending on the wane

"The giant banks are tightening their purse-strings when it comes to lending, according to a recent report in The Wall Street Journal.

The disturbing thing is that the federal government spent more than $1 trillion in an effort to put money back into the economy and get lending going again.

But the banks are instead holding that money close and using it as a cushion to avoid insolvency.

The Wall Street Journal has a chart that shows month-by-month lending activity from the banks that got the federal money. The lending over a 5-month period has dropped by a fourth so far. In one example, JP Morgan Chase has reduced its lending by 35%.

So here's what you need to know: If you're a business with an open line of credit or a homeowner with a HELOC, Clark wants you to draw down those lines now before the banks cut them off. Be sure to deposit the money at a different bank or credit union. That last part is very important.

In most loan agreements, there's a clause that allows the bank to claw back the money owed on a loan if they suddenly call it due. So if it's sitting on deposit at the bank, they'll just help themselves to your account to get it. No notice provision is necessary. You could easily wind up bouncing checks and there's nothing you can do about it.

Sure, it's convenient to do your borrowing and depositing at the same place. But it's a very risky move in today's high-stakes banking environment. "

The following general clause appears in most home equity loan contracts. Read yours carefully.

POSSIBLE ACTIONS

We can terminate your Account, and require you to pay us the entire outstanding balance in one payment if: you engage in fraud or material misrepresentation in connection with the Account; or, you do not meet the repayment terms; or, your action or inaction adversely affects the collateral or our rights in the collateral; and/or, federal law dealing with credit extended by us to you specifically requires that as a condition of your Account the credit shall become due and payable on demand.

We can refuse to make additional extensions of credit or reduce your credit limit if: the value of the dwelling securing the Account declines significantly below its appraised value for purposes of the Account; or, we reasonably believe you will not be able to meet the repayment requirements due to a material change in your financial circumstances; or, you are in default of a material obligation in the Agreement; or, government action prevents us from imposing the annual percentage rate provided for or impairs our security interest such that the value of the interest is less than 120 percent of the credit line; or, a regulatory agency has notified us that continued advances would constitute an unsafe and unsound practice; and/or, the maximum annual percentage rate is reached.

The initial Agreement permits us to make certain changes to the terms of the Agreement at specified times or upon the occurrence of specified events.

That's it. Hope all this is helpful to somebody.

GB

Banks Are Manipulating The Housing Market

Written by Robert Vaughan, Real Estate Professional in Corona

April 1, 2009 12:17 PM Foreclosure

No comments

25 views

We are starting to see what looks like a trend with banks holding back their inventory. Is anyone aware of banks in their market holding back their REO inventories to put a stop to the downward pressures? In our macro market, there has been a 32% drop in REO sales in 1st quarter 09 from 4th quarter 08. Any REO agents care to comment?

If this is the case, I can see that there would be two primary reasons they're doing this.

First, in markets where REOs are the majority of the inventory, they can manipulate the bottom of the market by reducing supply. People think that foreclosures = great deal, and in many cases they do, however; is that sentiment going to change? Banks are tired of taking losses and if they can control the price they get by controlling the market, they will. Look at any well known REO agent's inventory, and you'll see a sharp decrease from only a few months ago. Banks are choking off the supply and demanding a certain price for the properties and this is frustrating buyers. Fine, buyers will go buy the other properties in that market, but when those are gone, they'll have no choice but to buy at the price the bank demands.

Secondly, there is a lot of incentive for a bank to hold on to "toxic" or 0 based assets right now. The government's plan to backup private investments and to purchase these assets off of the bank's books at a value that is more than likely going to be higher that what they would get by selling it to the open market encourages banks to hold on to the assets for the big pay-day. I don't know how their going to value these assets, but based on how the banks are behaving, it looks as though they think it's a good bet to hold back, on both fronts. So much for, "banks don't want to own property". Well, they don't, but these are desperate times that call for desperate measures.

Either way, many of the projections for the further decline of home prices include continuing rise in foreclosures as a factor. I wonder how this will play out.

Home > Trulia Voices Home > Blogs > Are Banks Manipulating the Market?

Robert Vaughan's Blog

143 views

ING, DVB Won’t Fund Ethiopia Boeings Purchase

ING, DVB Won’t Fund Ethiopia Boeings Purchase, Reporter Says

By Jason McLure

April 20 (Bloomberg) -- ING Groep NV and DVB Bank AG pulled out of funding the purchase by Ethiopian Airlines of 10 Boeing 787 Dreamliners because of the credit crisis, Reporter said, citing unidentified people familiar with the plan.

ING withdrew from the project while DVB sought higher interest rates and fees, the Addis Ababa-based newspaper said. The airline will now seek alternative financing, it said. Ethiopian Airlines ordered the jets in February 2005 for $1.3 billion, Reporter added.

To contact the reporter on this story: Jason McLure in Addis Ababa via Johannesburg at johannesburg@bloomberg.net.

Last Updated: April 20, 2009 03:26 EDT

JP Morgan has no plans to repay bailout money

JP Morgan announced a 2.1 billion dollar profit for the first quarter, unlike it’s rival Goldman Sachs the banking giant did not mention any plans to repay the government money. According to Eric Dash’s report on Washington Post’s website.

JP Morgan has reportedly made nearly $6 billion dollars in the first quarter, $2.1 billion was categorized as profit, and $4.2 billion was set aside as a cushion, a CUSHION?! While millions of taxpayers are struggling to get by, the banking giant is cozily enjoy its “cushion”. Obviously, the CEO’s of the bank are a bit forgetful-they don’t remember that they need to repay the $25 billion taxpayers money that they got from the government.

Allegedly, when a survey of the nation’s 19 major banks comes out next month, the government might pump more money into the banking system! (New York Times) One might wonder, how long can we keep feeding the bad bankers?

Posted byPosted by yanli On Redstate Blog

Financial Crises Update 04-19-09

 - President Obama says US economy remains under strain.
Paul Volcker, Obama's economic adviser, says U.S. recovery will
be a "long slog" but rate of decline "is going to slow"

 - China's economy bottoming out - government researcher

 - Worst of British recession is over, to return to modest
growth in second half of 2010 - Confederation of British
Industry

 - ECB Trichet says bank has further room for benchmark rate
cut but cut is likely to be a measured 25 basis points - Nikkei

 - Fed will not allow unorthodox policies to lead to
inflation surge, but may need to do more to ease credit, Fed's
No. 2 says

 - Euro zone econ should start recovering in 2010 after
tough 2009, Trichet

 - U.S. housing sales near a bottom, a third of sales now of
foreclosed properties, Freddie Mac chief economist says

                 MARKETS

 - U.S. stocks rise, capping S&P 500's longest weekly
winning streak since 2007. Dow up 0.1 pct. Nikkei .N225 falls
1 pct as yen weighs

 - Euro strikes one-month low against dollar due to ECB
uncertainty

 - Oil falls $1 towards $49, weighed down by rising dollar
and growing investor caution on global economy, gold little
changed

                 QUOTES

  "The situation in financial markets and the economy would
have  been far worse if the Federal Reserve hadn't taken the
actions we did." - Donald Kohn, vice chairman of the Federal
Reserve.

 "We are experiencing a period which is difficult and the
year 2009 is obviously difficult for all economies in the world
without any exception, but it is also true that we have all
good reasons to consider that the recovery will take place in
the course of 2010." - European Central Bank President
Jean-Claude Trichet.

 "None of us has seen a decline in economic activity at the
rate of speed seen late last year." - Paul Volcker, senior
economic adviser to President Barack Obama.

 "While consumers believe the economy may have hit bottom,
most consumers believe that when the rebound starts the economy
will gain ground very slowly." - Richard Curtin, director of
the Reuters/University of Michigan Surveys of Consumers.

                  DIARY

            (all times GMT)

 Monday, April 20

 0600 - Japan Finmin Yosano, BOJ governor Shirakawa speak at
the annual meeting of Japanese trust banks.

 1230 - Chicago Fed National Activity Index for March

 1400 - Chicago Fed president evans welcomes Fed chairman
Bernanke

 1400 - U.S. leading indicators for March

 Newark, Delaware - Federal Reserve Vice Chairman Donald
Kohn discusses "the Economic Outlook" at the University of
Delaware's annual Hutchinson Lecture in macroeconomics at 2330.

 (Compiled by World Desk, Singapore, +65 6870 3815) 

Rising Risks in Muni Bonds Worry Investors

New York City Mayor Bloomberg said the city needs more than $1 billion in new taxes and pension reductions. "This is not a negotiating strategy," Bloomberg said. "Pension costs and health costs ... are going to bankrupt this city.

Municipal bonds have long been a no-brainer investment. But not any more. A growing number of analysts and financial planners are raising doubts about the bonds of local and state governments. They worry that a weakened economy, along with rising cost of benefits for city workers, will make it tougher for local governments to meet their obligations.

"Munis don't offer the same sleep-at-night safety they used to," says Christopher Cordaro, a financial planner at Regent Atlantic in Morristown, NJ. Earlier this year, Cordaro, who has been a planner for 22 years, began advising clients for the first time in his career to trim their muni bond holdings. "Municipalities across the country are in rough shape." (See TIME's "25 People to Blame for the Financial Collapse")

Cordaro isn't the only one having doubts. Last week, ratings agency Moody's lowered its outlook for the debt of local governments to 'Negative.' In its report, the ratings agency said local governments face "unprecedented fiscal challenges," over the next 18 months. The report also noted that this was the first time Moody's analysts were broadly worried about the ability of local governments to pay back their debts. Among the places Moody's finds to be most troubled are cities in Florida and California, because of the real estate bust, Indiana, Michigan and Ohio, which are being hurt by the drop in manufacturing, and Connecticut, New Jersey and New York, due to the financial crisis.

The debt of municipalities has long been a staple of many investors' portfolios. Financial professionals and their clients have been lured by munis' tax-free status, a history of few defaults and nearly three decades of low single-digit annual returns.

In the past two years, however, munis' predictability has been replaced by volatility. The bonds of state and local governments were among the worst performing sectors of the debt market in 2007, before falling off a cliff last year. The average muni bond fund lost 9.4% in 2008, and there were ten funds that lost more than 15%.

At first, the losses did not really unnerve muni investors because they stemmed from a special problem relating to muni bond insurers, such as MBIA, which ran into financial difficulty. For that reason, many analysts and investors saw that early selloff in munis as a buying opportunity. The insurers may be in trouble, the thinking went, but municipalities were still able to raise taxes, or tolls, if they ever got into a crunch.

But as the economic crisis unfolds it's getting harder to make the case that the financials of local governments are sound. "We know that there is going to be a number of states that will have problems balancing their budgets," says Diahann Lassus, a financial planner in New Providence, NJ.

Unemployment, which hit of rate of 8.5% last month, is higher than it has been in 25 years, and sales taxes are plummeting. Worse, local governments on average get nearly three-quarters of their tax revenue from real estate assessments. Falling property values and rising foreclosures mean that source of revenue is drying up as well. Many local governments have built up reserves anticipating the downturn in the housing market, but Moody's says that might not be enough. "The sharpness of the housing downturn and speed of the general economic contraction will likely test the sufficiency of those reserve cushions," Moody's analysts wrote.

While the revenue of state and local governments are falling, their obligations are not. On average, states have funded only 83% of what they owe or will owe to their retired workers. Many states have done a much worse: West Virginia, Road Island, Connecticut and Oklahoma all have less than 60% of their retiree benefits paid for. "The number of state funding ratios at the low end is startling," says Peter Hayes, who heads BlackRock's municipal bond management committee. "The prospect for even greater liabilities is a reasonable scenario if the country becomes trapped in a prolonged recession."

Last week, New York City said that it would have to cut thousands of municipal workers to keep the city from going bust. "We cannot continue," NYC mayor Michael Bloomberg told reporters. "Our pension costs and health care costs for our employees are going to bankrupt this city," he said.

Because of these issues, muni bonds don't seem particularly cheap even though munis now yield more than Treasuries. Indeed, Gary Strumeyer, head of capital markets at Bank of New York Mellon, says munis are no longer in the same rock-solid category as Treasuries, so it's not even a fair comparison. "Every investor needs to understand the many risks associated with purchasing muni bonds these days," he says.

Instead, Strumeyer believes investors should compare muni yields to those of high-quality corporate bonds. Recently, Vanguard's Term Tax Exempt fund, a huge muni fund with $21 billion in assets, had an implied yield of about 3%, according to Regent Atlantic's Cordaro. A similar corporate bond fund, BlackRock Intermediate Bond II, had yield of 8.5%. Even assuming a 35% tax bracket, the corporate bond fund is yielding nearly double the muni fund.

"I am not sure how some people say muni bonds are cheap," say Cordaro.

By Stephen Gandel Monday, Apr. 13, 2009 , Time

You Are a left-wing Extremist If - (Satire)

by John Lillpop - Canadian Free Press

On the heels of the ”right-wing extremist” controversy coming from the Department of Homeland Security, a counter force is looking to identify and deal with left-wing extremists.

According to prudent sources, You Are a left-wing Extremist If You Believe that--

• The U.S. Constitution is unconstitutional because women, racial, sexual preference, and religious minorities were all under represented in 1776
• Nancy Pelosi understands the Catholic Church’s teachings on abortion better than all popes, past and present
• Vast sections of America are still owned by Mexico, despite the Treaty of Guadeloupe, which was approved by both nations in 1848
• Silencing conservative talk radio is vital to America’s national defense
• Sandy Berger was a greater patriot and more honorable than Dick Cheney
• Barney Frank would be a terrific Secretary of Defense
• Freedom of choice is inalienable, except when it comes to heath care, saving for retirement, and other decisions best left to government
• Hillary Clinton is a better role model than Mother Teresa
• The right of government trumps all individual rights, notwithstanding the Constitution and the Bill of Rights
• Illegal aliens must be counted in the 2010 Census in order to assure that sufficient Democrat ballots are ordered for the November elections
• That white spot on Monica’s blue dress was actually secretarial “white out” planted by Linda Tripp to embarrass Bill Clinton
• Reparations should be paid to African Americans who can prove they voted for Obama
• Birth certificates must produced to purchase a gun, but are completely unnecessary in order to prove eligibility for the presidency
• “Minutemen" refers to the sexual staying power of border patrol agents
• Speaking English within ear shot of Hispanics obviously here illegally is a serious hate crime
• Straight, white, employed Christian males should notify the local police 60 days before moving into a new neighborhood
• Borders are unnecessary when proper diplomatic protocol is followed
• Burning Old Glory is protected free speech, whereas rants by conservatives like Rush Limbaugh are “hate speech”
• A woman’s right to abort the life of an innocent child is inalienable; whereas execution of a convicted killer is cruel, unusual & barbaric
• Starving a helpless victim like Terri Schaivo to death is acceptable, but using lethal injection to end the life of a brutal killer is not
• Publicly wishing a friend or family member “Merry Christmas” is clearly an act of civil disobedience and unconstitutional
• While symbols of Christianity must be hidden, Islam must be openly promoted in the name of religious awareness and tolerance
• Separation of state and government applies only to Christianity and Judaism.
• Leveling the playing field between haves and have-nots is the most important function of government, even more so than national security.
• Tax cuts are wrong when returned to people who actually paid taxes, but perfectly fine when sent to those who paid none
• Paying higher taxes is the “Patriotic” thing to do
• Marriage is no longer necessary to sanctify man-woman relationships; however, it is absolutely essential that same-sex couples be allowed to marry
• Enforcing U.S. borders and immigration laws is wrong because it discriminates against Hispanics
• Those who support English as America’s official language are racists, but those who prefer Spanish and other foreign languages over English are OK because of the inherent value of diversity
• Conservatives who seek to preserve American culture are hate mongers, whereas immigrants are encouraged to celebrate their heritage even if it interferes with assimilation into mainstream America
• Skyrocketing energy costs devastate working American families, but protecting Alaskan wild life is a greater priority
• Outsourcing American jobs to foreign nations is driven by immoral corporate greed, but open borders and amnesty are acceptable because most illegal aliens are future Democrats
• Huge profits are obscene, except when enjoyed by Bill and Hillary Clinton, Oprah Winfrey, Teddy Kennedy, and other liberals
• Military force must never be used, except when needed to obscure a Democrat president’s sexual misconduct in the Oval Office
• Invading a foreign nation is wrong, except when aliens from Mexico invade America

Being a left-wing extremist is the least patriotic behavior that one can engage in. Avoid liberalism at all costs!

The Founders were “Domestic Terrorists” According to Obama’s DHS

y JB Williams Tuesday, April 14, 2009

In an April 7, 2009 Department of Homeland Security (DHS) “declassified” report on the “Top Threats” to American security titled, Rightwing Extremism, DHS explains how our nation’s Founding Fathers would have certainly qualified for Obama’s definition of “domestic terrorists” and “rightwing extremists.”

In fact, most Americans qualify!

According to the DHS Assessment Report, “This product is one of a series of intelligence assessments published by the Extremism and Radicalization Branch to facilitate a greater understanding of the phenomenon of violent radicalization in the United States. The information is provided to federal, state, local, and tribal counterterrorism and law enforcement officials so they may effectively deter, prevent, preempt, or respond to terrorist attacks against the United States. Federal efforts to influence domestic public opinion must be conducted in an overt and transparent manner, clearly identifying United States Government sponsorship.” (PDF file here)

How hard is it to qualify as an “extreme rightwing radical domestic terrorist?” Not as hard as you might think…

“Rightwing extremism in the United States can be broadly divided into those groups, movements, and adherents that are primarily hate-oriented (based on hatred of particular religious, racial or ethnic groups), and those that are mainly antigovernment, rejecting federal authority in favor of state or local authority, or rejecting government authority entirely. It may include groups and individuals that are dedicated to a single issue, such as opposition to abortion or immigration.”

This is exactly how Obama’s DHS now defines “extreme rightwing radical domestic terrorist,” and this is officially the primary concern of Obama’s DHS. They are far less concerned with Al Qaeda, open borders, terror and drug trafficking, Iranian or North Korean nukes. It is the average American that they fear most!

(U) DHS - Key Findings

Rightwing extremists may be gaining new recruits by playing on their fears about several emergent issues. The economic downturn and the election of the first African American president present unique drivers for rightwing radicalization and recruitment.

The consequences of a prolonged economic downturn—including real estate foreclosures, unemployment, and an inability to obtain credit—could create a fertile recruiting environment for rightwing extremists and even result in confrontations between such groups and government authorities similar to those in the past.

Rightwing extremists have capitalized on the election of the first African American president, and are focusing their efforts to recruit new members, mobilize existing supporters, and broaden their scope and appeal through propaganda, but they have not yet turned to attack planning.

The current economic and political climate has some similarities to the 1990s when rightwing extremism experienced a resurgence fueled largely by an economic recession, criticism about the outsourcing of jobs, and the perceived threat to U.S. power and sovereignty by other foreign powers.

Growth of these groups subsided in reaction to increased government scrutiny as a result of the 1995 Oklahoma City bombing and disrupted plots, improvements in the economy, and the continued U.S. standing as the preeminent world power.

The possible passage of new restrictions on firearms and the return of military veterans facing significant challenges reintegrating into their communities could lead to the potential emergence of terrorist groups or lone wolf extremists capable of carrying out violent attacks.

Proposed imposition of firearms restrictions and weapons bans likely would attract new members into the ranks of rightwing extremist groups, as well as potentially spur some of them to begin planning and training for violence against the government. The high volume of purchases and stockpiling of weapons and ammunition by rightwing extremists in anticipation of restrictions and bans in some parts of the country continue to be a primary concern to law enforcement

Returning veterans possess combat skills and experience that are attractive to rightwing extremists. DHS/I&A is concerned that rightwing extremists will attempt to recruit and radicalize returning veterans in order to boost their violent capabilities.

Has anyone - besides me - noticed that despite the fact that most violent crimes, most violent protests, and most radical acts of terror in America, are NOT committed by your average white Americans, or even the average Republican, there is NO reference to “Leftwing” or “Black Panther” styled radicalism here???

Those seeking to rob fellow Americans of their hard earned property in the name of a greater communal good, are no threat to America at all. Only those who oppose these Marxist efforts qualify as dangerous “domestic terrorists” under Obama’s DHS. Those who commit voter fraud on a massive scale like Obama’s ACORN are no problem. But those who oppose it are “racists,” and a “dangerous threat.”

In short, if you still foolishly believe in the Founding documents as they were written and ratified, oppose an oppressive federal government run by unbridled Marxists, cling to your bibles and guns, affirm the unalienable individual Rights to Life, Liberty, or the Pursuit of Happiness, or national sovereignty as established in the Founders Declaration of Independence, you are now a “domestic terrorist!”

If you prefer FREEDOM over Marxism, only that which you earn instead of that which the government is willing to take from others in order to purchase your vote with gifts from the public trough, then you too are a “domestic terrorist.”

If you are a member of the armed services returning from duty abroad, you are a particular kind of special threat to American safety and security. You are worse than the average Republican or conservative terrorist. You they must watch even closer… Sure, you fought for freedom abroad, but you had better not try that here in the U.S. anymore…

According to Obama’s DHS…

“Rightwing extremists are harnessing this historical election as a recruitment tool. Many rightwing extremists are antagonistic toward the new presidential administration and its perceived stance on a range of issues, including immigration and citizenship, the expansion of social programs to minorities, and restrictions on firearms Scholars and experts disagree over poverty’s role in motivating violent radicalization or terrorist activity.”

“High unemployment, however, has the potential to lead to alienation, thus increasing an individual’s susceptibility to extremist ideas. According to a 2007 study from the German Institute for Economic Research, there appears to be a strong association between a parent’s unemployment status and the formation of rightwing extremist beliefs in their children—specifically xenophobia and antidemocratic ideals.”

“Rightwing extremists are increasingly galvanized by these concerns and leverage them as drivers for recruitment. From the 2008 election timeframe to the present, rightwing extremists have capitalized on related racial and political prejudices in expanded propaganda campaigns, thereby reaching out to a wider audience of potential sympathizers.”

This entire DHS document is devoted to “rightwing extremists” and the perceived threat they pose to the new Marxist administration. No doubt, I am blipping all over their radar about now, just for writing this story so that the average American knows who it is at their door at 3:AM, and why they are there… YOU ARE a TERRORIST!

• Oppose the murder of innocent children? – You’re a terrorist!
• Oppose Marxism in America” - You’re a terrorist!
• Oppose someone taking you bible or guns away? - You’re a terrorist!
• Oppose use of taxpayer funds to wreck the free-market? - You’re a terrorist!
• Want to keep what you earn? - You’re a terrorist!
• Don’t think so? – READ the REPORT! - You’re a terrorist!

But You’re in Good Company

According to Obama and his new DHS henchmen, the men who threw Tea into the Boston Harbor were also terrorists. George Washington was a terrorist, at least according to the new definition of the term, under Obama’s DHS.

In fact, EVERY Founding Father would qualify as a “rightwing domestic terrorist” under the new DHS definition, as every last one believed and zealously supported a Right to Life, Individual Liberty, and the Right to individual define and pursue Happiness under our own steam. Not ONE of them would support anything the new administration is doing today and THAT is why they are VERY worried about all of you bible thumping, gun-toting, domestic terrorists!

Unlike Obamanation, the Founders believed that Americans have individual Rights, not collective mob control over each other and the earned assets of others.

Unlike Obamanation, the Founders believed that these Rights are “unalienable,” – endowed by our Creator, not meted out by Ivy League Marxist lawyers, for benefit of their personal political ambitions.

What Next?

How much more do you need to see? Judging by what we have seen in just the first 80 days of Obama rule, I’d say anything is possible. Obama-nuts were right, YES they CAN destroy America in no time flat, and they are…

Now if you think you are going to stop them, you had better think again.

It’s now official, and shared with both Military Command and all state and local law enforcement agencies, not to mention the FBI, NSA and CIA. If you try in any way to derail their full frontal assault on all things American, you have already been put on notice, you are labeled an “extreme rightwing domestic terrorist” and your future is much less promising than that of Osama Bin Laden.

Got a Plan?

No, you don’t. Nobody does, because nobody thought this could ever happen in America. They thought 9/11 could never happen either, on 9/10… Few are more clueless than congressional Republicans, busy begging Obama for their own washroom and welcoming the new White House dog.

Sadly, I see NO signs that “real” American patriots are ready to stand, unite and fight yet. Most are still asleep and many, who are awake, are still busy debating what a terrible candidate John McCain was…

But I won’t have to worry much longer. If I wasn’t on the short list of “domestic terrorists” before writing this column, I will be now.

But as I told a dear concerned friend a few days ago, I’d rather be broke and free, than broken by bondage. I’d rather live free than die a slave to Marxists. So, if you don’t hear from me after this, you will know which option Obama chose for me… I’m sure they will get to Limbaugh, Savage, Hannity and Beck before the get around to little ole me. But don’t worry, you’ll be next!

(DHS PDF file here)

Life Insurance Companies Get Bail Out!

Peter Barnes and Joanna Ossinger

FOXBusiness

Life insurers, which have come under financial strain in recent months amid as their capital levels have declined and credit markets have frozen, may soon be eligible to receive government bailout money.

A financial industry source close to the TARP process told FOX Business that the Treasury Department would give money from the Troubled Asset Relief Program to certain eligible insurers.

Under the Bush Administration, Treasury had considered providing TARP funds to life insurance companies, but the review was interrupted by the auto industry rescue and the transition to the Obama Administration. Now the assistance is under review again, by the Obama Treasury team, as the life insurance industry faces increasing financial troubles.

The financial industry source close to the TARP process suggested the new review is in its preliminary stages and that some assistance for life insurers cannot be ruled out.

Life insurers that are bank holding companies have been eligible to receive TARP money, but haven’t been approved yet by Treasury. A source tells FOX Business that life-insurer applications total $20 billion from about half a dozen firms.

Prudential Financial (PRU: 22.08, 0, 0%), which already owns a thrift, has applied for TARP funds.

A number of insurers applied last fall to buy small bank holding companies in an effort to become eligible for TARP money, going so far as to say the acquisition was contingent on it obtaining them bank holding company status and TARP funds.

Genworth Financial (GNW: 2.1, 0, 0%), Hartford Financial Services (HIG: 8.45, 0, 0%) and Lincoln National (LNC: 6.93, 0, 0%) all pursued that strategy. They’re at various points in applying for TARP funds, according to a report published in the Wall Street Journal on Tuesday.

Life insurers are suffering more than health and property/casualty insurers amid the downturn because of their asset mix, which generally includes mortgage-backed securities and even sometimes stocks or other risky investments.

Because life-insurance liabilities are generally longer-dated -- a life policy might be paid 20 or 30 years down the line, whereas a health-insurance policy would likely start getting claims almost right away -- life insurers could take the opportunity to add some risk to boost their returns. That strategy would pay off during bull markets, but hurt the insurer in deep downturns such as this one.

China, Argentina Agree to Currency Swap

• 

• MARCH 31, 2009, 8:41 A.M. ET

By TAOS TURNER

BUENOS AIRES -- Argentine officials are hopeful that a new currency swap deal with China will bolster confidence in the peso while giving the monetary authority greater power to defend the currency.

"This should boost confidence," said an Argentine Central Bank official who asked for anonymity. "Even if none of this money is ever used, its mere existence should serve to boost confidence in the currency."

The two nations agreed to a three-year currency swap totaling 70 billion yuan, ($10 billion)

China's state news agency, Xinhua, reported earlier Monday that Argentina could use the deal to pay for Chinese imports in yuan. But the Central Bank official said the deal's main goal is to restore confidence in the Argentine government's ability to manage the value of the peso.

Read the entire article from The Wall Street Journal

Crude Oil $200, the Price for Wasting Financial Crisis Opportunity

Rohm Emanuel's famous quote regarding the current financial crisis, "Never let a serious crisis go to waste...it's an opportunity to do things you couldn't do before." was ignored last summer when oil prices reached $147 a barrel. The Obama administration has taken advantage of the financial crisis to ram through their socialist agenda which will add trillions to the National Debt. It will stimulate unions, bureaucrats, government employees, and defense contractors. It will do nothing to address the looming energy crisis which will sweep over the country shortly. Again, politicians and pundits will be shocked and astonished when oil soars. They will vilify oil companies, OPEC, and the dreaded speculators. They ignore the old fashioned supply and demand equation that even a dimwitted Congressman should be able to comprehend.

Instead of addressing the crucial issues that have led to the U.S. being dependent on foreign oil to the tune of $500 billion per year, Congress decided to spend your tax dollars on the following vital items (compliments of Casey Research ):

• $200,000 for tattoo removal for gang members in California .
• $98 million for a Coast Guard ice breaker closing an ice-breaking gap. (what about global warming)
• $950,000 for a bikeway in Kentucky .
• $2 million for astronomy awareness in Hawaii .
• $190,000 for a Buffalo Bill Historical Center.
• $650 million for the digital to analog converter box program.
• $1.8 million to study the effect of swine odor on the environment. (rumor has it the study will be conducted in the halls of Congress)

When oil prices collapsed from $147 a barrel in the summer of 2008 to $35 a barrel in January, American drivers, Congress, government bureaucrats, and the mainstream media refocused on other more pressing issues like executive bonuses, Michele Obama's wardrobe, and the tax law knowledge of Obama's cabinet. The attention span of the average American is shorter than a gnat's. As they text and twitter through life, the energy infrastructure continues to rust away, decades old wells are closer to depletion, and alternative energy projects have been scrapped by the thousands. Peak oil likely occurred between 2005 and 2009. The production of oil will now embark on a long slow decline. The world is not prepared.

Read entire article by James Quinn

Fed Announces Money Swap With Europe & Asia

Click here to see the press release

Liquid Euros Can Flow to U.S. Banks

European and Asian Banks agree to a swap arrangement of up to $285 billion with the Fed.

David M. Katz - CFO.com | US

If they need it, more liquidity will be on the way to U.S. banks—and, presumably, U.S. companies—from their friends in Europe and Asia.

The Bank of England, the European Central Bank, the U.S. Federal Reserve, the Bank of Japan, and the Swiss National Bank announced the formation of swap arrangements that would enable them to supply foreign-currency liquidity via the Federal Reserve to U.S. financial institutions.

Related Articles

• Parched: Liquidity Issues Spur Flurry of Downgrades
• Ten Percent of Cos. May Lack Liquidity in 2009: Moody's
• Downturn Disclosures: Expect Liquidity Focus

"Should the need arise, euro, yen, sterling, and Swiss francs would be provided to the Federal Reserve via these additional swap agreements with the relevant central banks," the ECB said in a release. "Central banks continue to work together and are taking steps as appropriate to foster stability in global financial markets."

The governing council of the ECB will set up a temporary reciprocal currency arrangement (swap line) with the Fed. This agreement would provide the Fed with the capacity to offer liquidity of up to 80 billion euros (about $107 billion). The governing council approved the swap line until October 30, 2009.

If drawn upon, these arrangements would support operations by the Fed to provide liquidity in sterling in amounts in euros in amounts of up to €80 billion ($107 billion), of up to £30 billion in British sterling ($44 billion), in yen in amounts of up to ¥10 trillion ($99 billio), and in Swiss francs in amounts of up to CHF 40 billion ($35 billion). That would amount to a total of $285 billion at todays currency rates.