Hey Good Morning Congress!! How Was Your Nap? If You Get a Chance Go Over to The White House and Wake Them Up Too!

From Bloomberg News;

 The $3.5 trillion commercial real estate market is a ticking “time bomb” that could lead to a second wave of losses at large U.S. banks, congressional Joint Economic Committee Chairwoman Carolyn Maloney said.

About $700 billion in commercial mortgages will need to be refinanced before the end of next year and “doing nothing is not an option,” Maloney, a New York Democrat, said in a statement at a committee hearing today.

This “looming crisis” in commercial real estate lending could lead to significant losses for banks, force shopping center and hotel owners into bankruptcy, push real estate prices down and impede economic recovery, she said.

Umm, the bomb ain't ticking anymore.  It's already exploded.  Wait till Secretary Geithner has to tell President Obama this one.  It should go something like this;

Tim: "Mr. President, it appears that we're going to need another TARP."

President Obama: "Why is that Tim?  I thought we fixed the banking problem in March?  I distinctly remember making three speeches, signing off on program to get rid of bad assets and a program to stop foreclosures.  David (Axelrod) isn't that right?"

Axelrod:  "That's correct Mr. President.  According to my check list we solved the banking crisis back in March, right after the stimulus and right before global warming and naming the new puppy."

Tim:  "Those are both excellent points and you both are correct.  However, as Vice President Biden so aptly put it this past weekend, this crisis that we inherited has gotten worse than anyone could have imagined.

President Obama: "David, have the faux Greek columns arrived yet to put behind my desk?  Oh...Tim, I'm sorry.  You were saying the banking system needs another bailout?  Last month we were fighting with them about their desire to give the money back!  That's odd.  David, what do you think?

Axelrod: "Well, we certainly can't go back to Congress.  Tim, can't we just create another one of those facilities, or stick it in Fannie or Freddie?

Tim: "Afraid, not David.  We used just about every 4 and 5 letter acronym with regard to the various facilities, the poor Fed just can't keep up.  And with regard to Freddie and Fannie we're getting close to using up the full $400 billion.

Axelrod: "Perhaps....just perhaps....The new omnibus spending bill will be here before we know it.  We can probably get at least $100 billion there.  And between health care and the second stimulus we could probably squeeze out another $100 billion without anyone noticing.  Would that work Tim?"

Tim: "It just might David, it just might!"

President Obama: "Splendid!  Ok David, what's next, cold fusion?"

 

Comments

[williambanzai7]

GEITHNER'S SUMMERTIME BLUES
(Summertime Blues)
WilliamBanzai7

Well, I'm a'gonna raise a fuss,
An' I'm a'gonna raise a holler.
I've been working all Summer
Just to try to save the Dollar.
Well I went to Obama
Said gimme Stim II before its too late
The boss said "No dice, son, just fix the unemployment rate"

Sometimes I wonder what I'm a'gonna do
There ain't no cure for Geithner's summertime blues

Well my Uncle Benny told me
"Son we gotta save some money,
If you want to use the Fed's car
To go bailing next Sunday."

Well PIPP didn't work
So I told the boss I was sick
"Now you can't use the bailout car
'cause the deficit's on a pogo stick!"

Sometimes I wonder what I'm a'gonna do
Cause there ain't no cure for Geithner's summertime blues.

Gonna take a few weeks
Until the next market conflagration
Gotta fix the problems
Or face financial annihilation

Well I went to the congress
They said, quote: "We'd like to help you son,
But you can't have our vote."

Sometimes I wonder what I'm a'gonna do
Cause there ain't no cure for Geithner's summertime blues.

[williambanzai7]

Don't forget the good news in prime defaults and the second AIG delayed fuse bomb in European regulatory swaps. Pump up the vols?

"There ain't no cure for the summertime blues"

[RPB]

Honestly, this Goldman trading deal is really starting to irk me. Its one thing if they pull in a few million trading cash bonds, its another if they scalp everyone placing an order on the NYSE. And this was done all with my money! A large number of these c*cksuckers need to be bunk mates with ole' mad dog Madoff

[RPB]

If we have to bail out the banks again after their record bonus payouts. . . where do I buy a triple long directional index on pitchforks?!?