Brainstorming Thursday

1. The new CEO ( Benmosche) of AIG seems to be even a bigger moron than all the others - his first action on the job is to fly out on a vacation but even worse he says from that place in Macedonia that AIG will repay the government funds - is this guy just another Goldman pupett or brain dead to make such a false claims.

2. New Moon effect at work markets rising on fake statistics and claims but the idea seems to be pretty much 1000 expiration settlement.

3. Barron's since Murduch took over has been in a degeneration or quality crash the called GM around 10 a buy and declared a few weeks ago EK would go to zero just to give 2 examples of their plenty horror calls.

4. The real metric to see where we are is the housing situation since the crisis was triggered and caused by the insane bets nade in this field as the banks did not take the marks as required they sit on ever imploding assets and FDIC is already out of money - more trouble ahead.

Delinquencies shooting through the roof now with even increasingly prime borrowers they do not include foreclosures they come on top.

Excerpt

The delinquency rate breaks the record set last quarter. The records are based on MBA data dating back to 1972. The delinquency rate includes loans that are at least one payment past due but does not include loans somewhere in the process of foreclosure.

The percentage of loans in the foreclosure process at the end of the second quarter was 4.30 percent, an increase of 45 basis points from 3.85 percent the first quarter of 2009 and 155 basis points from 2.75 percent one year ago.