Yes stocks have lost Trillions but what about Grain Market losses?

[SASKFARMER3]

Isn't it funny people get excited when the TO or NY Stock markets loose money it makes the news. But when Grain Farmers have lost Billions since early spring with really no fundamental change in inventories their is no mention on any News network etc. Food goes up in February and people get excited oh no we will have to pay more to eat. (need to eat to live). But when it drops like a stone that's OK.
So let me get this strait, Food high makes news food low no news.
NO their is no cheap food policy. And No Banks wont fail and No the market works. YEA its starting to look like all of this is a crock.

[Fransisco]

I was ticked off at the MSM TV coverage of the 'record' 777 point drop on the Dow the other day and how it meant a trillion dollar equity loss. You think they could put a chart up to put the whole thing in context? Nooo!So I looked it up. The move doesn't look all that unusual when you look at what's been going on for the last six to eight months. Really it's just a drop in the bucket.

And it got me thinking, if the Dow can make a trillion dollar move in one single day what the heck is the $700 billion dollar bailout supposed to accomplish? Move things in the opposite direction for one day? Whoop-de-doo!

Then I saw a talking head on Lou Dobb talking about how the credit market was supposedly drying up and that without the bailout package pretty soon no one would be able to get any credit, and the lines of credit would suddenly just seize up and no one would be able to do any business or pay any bills.

Well check out the latest credit stats( as of September 17) in the US at this web address...
http://mjperry.blogspot.com/2008/09/new-banking-data-wheres-credit-crisis.html

They're at record highs across the board, total loans, consumer loans, real estate loans, commercial loans. You name it they're all continuing along nicely.

Something really stinks in all this. One commentator I read yesterday said, " this isn't a bailout, it's a stick-up". I'm starting to think he might be right.

[parsley]

Are losses being neatly downloaded all over the world,instead of just the USA, while people watch the political "look at the birdie" show on tv?

When this is over, will the US dollar go up? Will the average guys stocks be worth half and he'll have to sell cheap? Will the smart go in and buy low? And will the market then stabilize?

5 questions.

What did you answer?

Pars

[AdamSmith]

Yeah I get po'd with the MSM almost every other day, but I know I should know better. The MSM do not have clue one about marketplace.

The MSM broadcast to the lowest common denominator, their ratings would tank if they had to explain anything beyond a level that would overwhelm the average fifth grader.

Was watching CTV with Lloyd last night and Peter Donolo with Stategic Council was on explaing the latest poll and the discussion that took place about the polls was so geared to an elementary schooler, I just flipped the channel.

The other thing I've been finding out (not on the MSM) a relativly new regulation which is called "Mark to Market" has also exasperated the problem.

I think we are discovering that poorly thought out government regulations and the law of unintended consequences are at the heart of this credit meltdown.

[LWeber]

A recap from an American poster to another Ag site:

_______________________________________
From: JonSCKs

Date: Sep-28

So the Crooks and Thieves have come up with a $700 BILLION DOLLAR plan to SAVE US from their plunderings eh..."what a country?"

$700,000,000,000.00 of YOUR MONEY they are throwing out there... happy?

Now make NO MISTAKE Something had to be done... IF we were living in the go-go 1920's and corruption and greed abound.. which it did.. IF you KNEW what was coming in the 1930's and you could ACT to STOP IT... well You definitely would have WISHED that you HAD ACTED in a few short years into the Great Depression. As someone else said.. we are on the cusp of re-writing history.. of renaming the Great Depression... the First Depression.

SO THEY HAD TO DO SOMETHING. We can't let the Credit Crisis continue.

Now do you want to know HOW We got here?

Fannie Mae was created in the 1930's to...

"The FHA Administrator chartered Fannie Mae (FM) on February 10, 1938. The purpose of this organization was to codify the national commitment to housing and to address the inability or unwillingness of private lenders to ensure a reliable supply of mortgage credit throughout the country. The primary purpose of Fannie Mae was to purchase, hold, or sell FHA-insured mortgage loans originated by private lenders."

http://www.opednews.com/articles/1/The-Real-Cause-of-the-Curr-by-Joe-Reeser-080926-83.html

"The 1968 Charter Act split Fannie Mae into two entities: a reconstructed Fannie Mae and Ginnie Mae (GM). "

"In 1970, the Emergency Home Finance Act created Freddie Mac. This was essentially in response to concerns over the virtual monopoly enjoyed by Fannie Mae in the secondary market due to the federal protections afforded this GSE. Freddie Mac and Fannie Mae operated under what was essentially a 'separate but equal' regulatory and oversight framework. This law also required the HUD Secretary to approve Fannie Mae's business dealings."


"The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 overhauled the regulatory oversight of Fannie Mae and Freddie Mac. The Office of Federal Housing Enterprise Oversight was created as a regulatory office within HUD with the responsibility to "ensure that Fannie Mae and Freddie Mac are adequately capitalized and operating safely." This office is authorized to act without HUD oversight on a range of regulatory issues. It also established HUD-imposed housing goals for financing of affordable housing and housing in central cities and other rural and underserved areas."

In 1977 the.. "Community Reinvestment Act (CRA) was signed into law by President Carter. The purpose of this act was to "require each appropriate Federal financial supervisory agency to use its authority when examining financial institutions, to encourage such institutions to help meet the credit needs of the local communities in which they are chartered consistent with the safe and sound operation of such institutions." In addition this act mandated that the appropriate Federal financial supervisory agency should assess the institution's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of such institution; and take such record into account in its evaluation of an application for a deposit facility by such institution."

"Even with all this involvement by the regulatory agencies, however, real progress towards the stated goal of increasing numbers of low- and moderate-income homeowners was considered spotty at best and generally unacceptable by many in the regulatory agencies, in Congress and among community activist organizations. Impact of the Federal Housing Enterprises Financial Safety and Soundness Act

Congress passed the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 in an effort to address the above problems. This act created the Office of Federal Housing Enterprise Oversight (OFHEO) with HUD to oversee Fannie Mae and Freddie Mac (FM2)"



"In other words, Fannie Mae and Freddie Mac were forced to buy sub-prime loans in considerable numbers."



During the rest of the 1990's Fannie Mae backed sub-Prime Loans SHOT UP to billions upon billions of dollars. AND YOUR GOVERNMENT INSURED THAT IT HAPPENED! In fact FORCED BANKS TO MAKE THE LOANS!!! Banks are regulated by the government.. on the one hand they have to "stay compliant" with all the appropriate lending regulations... (ever got a loan and signed the 200 documents that go with it?) "You have the right to refuse this loan up to three business days..." There are WHOLE FORESTs that have been chopped down and turned into government required documents for this purpose. On the other hand are the regulators who look at the books... "What are you doing with all these risky loans?"



In 2003 the Bush administration tried to stop this..



"The New York Times reported on September 11, 2003, ''The regulator has not only been outmanned, it has been out-lobbied,'' said Representative Richard H. Baker, the Louisiana Republican who has proposed legislation similar to the administration proposal and who leads a subcommittee that oversees the companies. ''Being underfunded does not explain how a glowing report of Freddie's operations was released only hours before the managerial upheaval that followed. This is not world-class regulatory work.''



The same article contains the now famous quotes from two Democrats: ''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''



Representative Melvin L. Watt, Democrat of North Carolina, agreed. ''I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,'' Mr. Watt said."



Jim Johnson was CEO of Fannie Mae through 1998..



"An Office of Federal Housing Enterprise Oversight (OFHEO) report from September 2004 found that, during Johnson's tenure as CEO, Fannie Mae had improperly deferred $200 million in expenses. This enabled top executives, including Johnson and his successor, Franklin Raines, to receive substantial bonuses in 1998. A 2006 OFHEO report found that Fannie Mae had substantially under-reported Johnson's compensation. Originally reported as $6-7 million, Johnson actually received approximately $21 million."



http://en.wikipedia.org/wiki/James_A._Johnson_(businessman)



Franklin Raines resigned as the CEO of Fannie Mae in 2004.




"On December 21, 2004 Raines accepted what he called "early retirement" from his position as CEO while U.S. Securities and Exchange Commission investigators continued to investigate alleged accounting irregularities. He is accused by The Office of Federal Housing Enterprise Oversight (OFHEO), the regulating body of Fannie Mae, of abetting widespread accounting errors, which included the shifting of losses so senior executives, such as himself, could earn large bonuses.

In 2006, the OFHEO announced a suit against Raines in order to recover some or all of the $50 million in payments made to Raines based on the overstated earnings initially estimated to be $9 billion but have been announced as 6.3 billion.

http://en.wikipedia.org/wiki/Franklin_Raines



GREED AND CORRUPTION!!!



fueled with your tax dollars as GSE backed institutions gave $$$ to politicians... There's more.. but I have to go.



This didn't occur because of a LACK of REGULATION.. it occured BECAUSE OF WRONG MINDED REGULATION!!



Then the crooks got involved...

[LWeber]

Greenspan: Freddie, Fannie Need Limits
Wednesday, April 06, 2005 – UPI

WASHINGTON, (UPI) -- Federal Reserve Chairman Alan Greenspan said there should be a limit on the size of the financial portfolios held by Fannie Mae and Freddie Mac.

Testifying before the Senate banking committee on the two government-sponsored enterprises, which face the possibility of a major overhaul, the Fed chairman said, "Without restrictions on the size of balance sheets, we put at risk our ability to preserve safe and sound financial markets in the United States, a key ingredient of support for home ownership."

Washington-based Fannie Mae is the biggest buyer of home mortgages in the United States, Freddie Mac comes in second place.

[wilagro]

All very interesting but not really about commodity marketing.

[cottonpicken]

Massive amounts of liquidity with no home but tangibles has everything to do with commodity marketing.

[furrowtickler]

Willie, with all all this going on, how's the value of your grin inventry doin? CWB grains on the last and next PRO? Do ya think this has anything to do with marketing? Oh thats right, lets let the pro's at the CWB take care of it it will all average out! Nothin to see here - move on - and go but fert at the most overinflated price in the world.

[furrowtickler]

That should be grain inventory, fingers type faster/slower than the mind. BTW, done today, potholes and all!!!! Great weather for all to get er done! Good luck to all. Remeber - pile CWB grains on the ground and store your open board stuff, do not give iy away, thay will be back to pay.

[Fransisco]

Check out the new and "improved" bailout.


http://bidinotto.journalspace.com/?entryid=787

It now includes money for:

Renewable Energy Incentives

A Mental Health Parity and addictions provision

Disaster(read hurricane) relief

An increase and extension of Oil Spill Liability Trust Fund tax

Increase in limit on cover over of rum excise tax to Puerto Rico and the Virgin Islands

Film and Television Productions

Wooden Arrows designed for use by children

6-page package of earmarks for litigants in the 1989 Exxon Valdez incident, Alaska

Mine Rescue Teams

Mine Safety Equipment

Railroads

Indian Tribes

Auto Racing Tracks

And my personal favourite

Wool Research

And we're supposed to believe this is some kind of financial crisis?