Monday, August 9, 2010

Just When You Think The Taxpayer Bailout Of Real Estate Crooks And Banks

can't get any more absurd, you wake up to this (sourced from disclosure that the commercial real estate lobby is asking for Congress to borrow even more money and give it to the banks to bail them out of their commercial real estate disasters: 
The undersigned commercial real estate industry associations strongly support the Community Recovery and Enhancement Act (CRE Act), important legislation introduced by Congresswoman Shelley Berkley to help incentivize equity investment in distressed commercial real estate assets and to address the pending crisis threatening community banks that currently hold significant real estate debt on their books.
Here's the link:  It's Gets More Absurd

Please note that this pathetic entreaty specifically refers to community banks as being the primary beneficiary. Let me state for the record that the real problem with underwater CRE loans is sitting on the balance sheets of Citicorp, Bank of America, JP Morgan and other big banks.  I know this for a fact.  I know from a very good friend of mine who is a commercial real estate investment consultant to pension funds that these big banks do not mark down their real estate assets at all until a forced restructuring occurs. And many of  the mega-deals that are at least 50% underwater.  This means the equity is wiped out and the bank loans yet be restructured are worth, AT MOST, 50 cents on the dollar.
The big banks don't care about the community/regional banks other than to let them die so the big banks can pick over the carcasses.  Make no mistake, this is another big bank bailout in process.  Is everyone interested in seeing more of their tax money going into the pockets of the big banks and the people who run them?  That's where this is headed...

The Congressman who introduced this - Shelley Berkley from Las Vegas - is a lifelong politician and no doubt has been heavily controlled and likely PAC-subsidized by the casino industry (i.e. lots of corruptions and graft to toss around).  Here's her bio:  Scumbag  The casino industry has completely overbuilt Vegas and the big banks have underwritten most of the debt to finance the overbuilding. Here is a breakdown of Berkeley's money-givers: The Less You Bet, The More You Lose When You Win


  1. These people will bailout everything in sight until the USD is completely destroyed.

    Joe M.

  2. Dave,

    SofaKing is going to buy you a tin foil hat.

  3. LOL SK - another banker found dead in his pool/hot tub...

  4. At first I thought this was a joke. UNBELIEVABLE!

    Everyone should go to King World News and listen to his interviews. He was the LONE 'mainstream' voice that told a different view of BP's disaster. TOTALLY different.

    HE drowned in a 4 ft hot tub, no he had a heart attack. I guess that's better than, 'He died from hanging himself, but an autopsy revealed bullet entry points in the back of his head.'

  5. Time to start threatening death to any politician that votes for bank bailouts.