-------- Original Message --------
| Subject:
|
USA: 4yr - 8.6 Million Foreclosure
Projection |
| Date:
|
Tue, 14 Apr 2009 08:45:27 -0700 |
| From:
|
"Stephen M. Apatow"
<s.m.apatow@humanitarian.net> |
| To:
|
Emergency Food and Shelter National Board
Program
<efsp.email@uwa.unitedway.org> |
Dear
Colleagues:
According to the Center for Responsible Lending, 2.4 million
foreclosures are projected for 2009 and 8.1 million over the next 4
years.
As we enter the first phase of this projected 4 year crisis, people on
the grassroots household level across the United States are not
receiving assistance:
-
Real
unemployment is currently at 15.6 percent (WSJ) with 1 out of 6 now unemployed
or underemployed.
- 1
out
of 5 mortgages that are upside down with negative equity and 40% of
all mortgages eligible for a loan modification.
- The
New
York Times ( 3 April 2009) reported Bankruptcies rose to nearly 6000 a day in March or
one every 13 seconds.
- The
size
and scope of the homeless crisis and tent cities across the United
States
has prompted a call for FEMA and the Red Cross to activate disaster
shelters
in every state.
States
are increasing taxes and exploiting predatory hyperinflated home
valuations
(property taxes) to meet their budgets, while families crash. The
level of assistance to the household level, is equivalent to
our
leaders saying, we will say a prayer for you, implementing economic
measures
that will deepen the crisis further. A national Presidential
disaster
declaration (economic) was called for a year ago when we entered the
recession/depression
and contingencies were set forward for emergency economic stabilization.
The paper "The Pricing of Investment Grade Credit Risk during the
Financial Crisis (Joshua D. Coval: Harvard Business School, Jakub
W. Jurek: Bendheim Center for Finance, Princeton University, and Erik
Stafford:
Harvard Business School, March 30, 2009) provides the following
conclusions
regarding systemic risk analysis (Dollars and Sense, 8 April 2009):
* Many banks are now insolvent. "...many major US banks
are
now legitimately insolvent. This insolvency can no longer be viewed
as an artifact of bank assets being marked to artificially depressed
prices coming out of an illiquid market. It means that bank assets are
being fairly priced at valuations that sum to less than bank
liabilities."
* Supporting markets in toxic assets has no purpose other than
transferring money from taxpayers to banks. "...any taxpayer dollars
allocated
to supporting these markets will simply transfer wealth to the current
owners of these securities."
* We're making it worse. "...policies that attempt to prevent
a widespread mark-down in the value of credit-sensitive assets are
likely to only delay—and perhaps even worsen—the day of reckoning."
Leaders are calling for 100% transparency, clearing and
neutralization of unregulated derivatives that facilitated the
global market
collapse combined with a G-192 debt relief strategy to
address
the derivatives clearing variable. One view of the shadow
banking
system is that if the trade was unregulated, with no capitol base to
back
the instrument, then the transaction represented fraud and should be
treated
under the umbrella of a criminal investigation.
According to "Banks Lose $836 Million in First Derivatives Loss"
(27 March 2009):
-- five banks accounted for 96 percent of the $200
trillion in derivatives contracts held by U.S. banks...
-- JPMorgan remained the largest user of derivatives among its
competitors, with $87.4 trillion in notional value, more than Bank
of America and Citibank combined...
-- Goldman Sachs held $30.2 trillion in derivatives at the end of the
fourth quarter, OCC said.
-- About 97 percent of JPMorgan’s trading in the fourth
quarter occurred in the over-the-counter market, with Bank of America
at 94 percent and Citigroup at 98 percent.
Leveraged borrowed money from the central banks (the G-192 Y2K
remediation infusion), flowed directly into the stock and commodities
markets in
conjunction with revocations of the protections afforded by the Glass-Steagall
Act of 1933 and the Commodity Futures Modernization Act of 2000.
Today, the central bank money, being infused to stabilize the
global markets
following the resultant 2 market crashes, is once again being
leveraged
for facilitate further systemic destruction:
Stimulus plans and near-zero interest rates in developed
economies are boosting investor confidence in emerging markets and
commodity-rich nations with interest rates as much as 12.9 percentage
points higher. Using dollars, euros and yen to buy the currencies of
Brazil, Hungary, Indonesia, South Africa, New Zealand and Australia
earned 8 percent from March 20 to April 10, that trade’s biggest
three-week gain since at least 1999, data compiled by Bloomberg show.
-- Carry Trade Comeback
Means Biggest Gains Since 1999, Bloomberg, 14 April 2009.
For a list of foreign exchange or Forex Trading Platforms allowing
trades at 100:1 to 400:1 leverage, visit the MetaTrader Forex Brokers directory.
The IMF has been allocated $1 Trillion for humanitarian aid to address
the damage caused by a $400 Trillion + central bank leveraged market
challenge, hyperinflation, etc., etc....
Emergency economic stabilization and recovery for every household in
the United States and on the grassroots level in 192 member countries
of the United Nations is a priority focus of Humanitarian Resource
Institute.
Looking forward to your guidance....
Stephen M. Apatow
Founder, Director of Research & Development
Humanitarian Resource Institute
Humanitarian University Consortium Graduate Studies
Center for Medicine, Veterinary Medicine & Law
Phone: 203-668-0282
Email: s.m.apatow@humanitarian.net
Internet: www.humanitarian.net
---------------------------------------------
Note:
This is the orginal article.
UPDATE:G20: Systemically Key Institutions, Mkts Need
Regulation: Wall Street Journal, 2 April 2009
LONDON
(Dow
Jones)--The Group of 20 developed and developing nations said Thursday
all systematically important institutions and markets should be
regulated,
and urged members to complete the implementation of the Basel II
capital
framework.
"We
have
agreed that all systemically important financial institutions, markets
and instruments should be subject to an appropriate degree of
regulation and oversight," the G20 said in an annex to the
communique following its summit Thursday.
The
group
said hedge funds or their managers must be registered and will
be required to disclose "appropriate information on an ongoing basis to
supervisors or regulators," including on their leverage.
The
group
called on all G20 countries to "progressively adopt" the Basel II
capital
framework, which hasn't been agreed by the U.S. among others.
The
G20
endorsed the Financial Stability Forum's recommendations on reducing
procyclicality of accounting rules and also endorsed new principles on
pay and compensation, which aim to ensure compensation structures are
consistent with "long-term goals and prudent risk-taking."
These
principles
should be integrated into risk management guidance by the coming fall,
the G20 said.
The
group
also called for "the standardization and resilience" of credit
derivative
markets, mainly through the establishment of regulated central clearing
counterparties.
It
called
on the industry to develop an action plan on standardization by autumn
2009.
However,
the group of leading economies also said international standards on
capital levels shouldn't be changed until the global economy recovers.
"Until
recovery
is assured the international standard for the minimum level of capital
should remain unchanged," it said. "Once recovery is assured,
prudential
regulatory standards should be strengthened."
The
G20
said compensation arrangements, including bonuses, should properly
reflect risk and companies should disclose such information to make
sure stakeholders are adequately informed.
"Payments
should not be finalized over short periods where risks are realized
over
long periods," it said.
The
G20
also agreed that action should be taken by the end of the year to
reduce the complexity of accounting standards for financial instruments
and make significant progress towards a single set of global accounting
norms.
The
G20
said it would promote the standardization and resilience of credit
derivative markets and called for fair value accounting framework to
be reaffirmed.
###
Humanitarian Resource Institute
Legal Resource and Assistance Center
The Humanitarian Resource Institute Legal Resource and Assistance
Center provides access to initiatives that include the Consumer's Guide
to Legal Help on
the Internet (American Bar Association - Free Legal Help, Self Help,
Legal Aid), Pro Bono Legal Assistance (United States and
International), and online tools for legal research.
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