TigerSoft News Service    5/7/2008      www.tigersoft.com   


                          It's Scary What He's Willing To Do for His Banking Buddies.
  It's A Sign of Desperate Times

                                      "Give me your tired, your poor bankers,
                                        Your huddled mortage lenders yearning to breathe free,
                                        The wretched refuse of your teeming loans.
                                        Send these and the tempest-tossed, to the US Treasury".  

                                                           by William Schmidt, Ph.D. -  Creator of Tiger Software.
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                ( http://politicalhumor.about.com/od/politicalcartoons/ig/Political-Cartoons/Greenspan-Bernanke.htm )

                         What's Another $500 Million after $250 Billion among Friends?

                                 Today the FED and Bernanke told Congress that they want to pay interest
                     to Commercial Banks, starting this year, for reserves which these banks are required to
                     place with the Federal Reserve.   Reserves have long been required to assure the safety
                     of the banking system.  Two years ago the Republican Congress quietly voted to start
                     paying the banks an interest rate equal to the Federal Funds rate, but this was not supposed
                     to start until 2011.  With interest rates low, this is estimated to be $150 million a year.
                     But if interest rates were to jump to 20%, as they were in 1980, we're talking about
                     a billion and a half dollars.  Over a five year period, this could easily amount to $2 billion
                     more dolllars taken out of the US Treasury to subsidize banks.

                                This is one more example of Bernanke being the agent of   big elite banks, rather
                     than taxpayers or the rest of America.  In March, the Fed financed the JPM buy out
                     of Bear Stearns even though the Fed could be left holding a bag of collateralized assets
                     worth far less than the $30 billion it gave JPM.   Exactly how much has been provided
                     commercial and investment banks in return for very questionable mortage collateral?
                     Larry Kutlow said on a TV show it amounted to $650 billion.  The Wall Street Journal
                     gives supports this estimate: "the Fed is starting to run low on unconventional ammunition;
                     it started with only (SIC!) about $800 billion in Treasury and repo assets and had already
                     sold, rolled off or pledged about half before Friday’s facility to Bear Stearns was announced...
                     (T)he Fed announced the Term Securities Lending Facility... Under that facility, dealers
                     could borrow up to $200 billion of Treasurys from the Fed in return for agency and
                     private-label MBS.. ."                               
                     ( http://blogs.wsj.com/economics/2008/03/17/lower-fed-funds-rate-the-fate-of-the-tslf-and-other-fed-notes/   )
                     This is part of a pattern wherein the Fed gives banks lots of US Treasury money at very
                      low interest rates without requiring much of anything in return.  It shows that the FED is
                      hopelessly corrupt and a willing captive of the wealthiest elite banks.  It proves that the FED
                      will do anything to stretch its authority to bale out failing financial institutions. 

                            That the FED must now openly go to such lengths shows outsiders several things:
                                  (1)   that the current Federal Reserve System is hopelessly corrupt and chose
                                  not to regulate the mortgage business as the bubble of home prices grew and grew.
                                  (2)   that Banks are desperate and the banking system is in real danger, because
                                  of so many mortgage owners just walking away from their home loans.
                                  (3) that good paying jobs are declining and wealth in the US is becoming so
                                  concentrated in the US there is a real possibility of far-reaching credit failures
                                  that will bring down a number of major banks. 
                                  (4) that the Fed must print so more and more Dollars.
                                  (5) inflation will become such a severe problem and interest rates will have to be
                                  raised very steeply as they were from 1977 to 1980.

                                                               The Credit Crisis Is Not Getting Better

                                    Banks loans are much harder to get, just when more and more people need them.  The
                            lowered interest rates are not being passed along to consumers.  Look at your credit
                            cards's rate of interest.  Banks are scared.  They have themselves borrow billions form
                            the Federal Home Loan Bank.  In fact, the "Fed’s discount window lending is vastly
                            outweighed by that of the FHLBs, which have lent $99 billion to Citibank, $51 billion to
                            Countrywide, and $44 billion to Washington Mutual, to name three pressed borrowers."

                            ( http://www.american.com/archive/2008/march-03-08/grading-bernanke-a-symposium   )

                                    The evidence keeps building that the losses and delinquencies are rapidly spreading
                           now to prime mortgages.  If home prices keep sliding, and they have corrected only 20% of
                           the gains between 1996 and 2006, as many as 10 million households will be in negative
                           territory as far as their equity in their home goes.  This creates a very big incentive for a
                           vastly more mortage defailts and "walk-aways".  A 30% drop in home prices - now likely -
                           would wipe out $6 trillion in household wealth".  The lay-offs created by the banks'
                           de facto tightening of credit, couppled with inflation and much higher gas prices, are
                           extending and increasing the rate of  the defaults on credit cards, auto and student loans.  
                           Moreover, if there is a recession, which seems likely, 10+% of US corporations may
                           default on their loans.

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                  ( http://politicalhumor.about.com/od/politicalcartoons/ig/Political-Cartoons/Irrational-Exuberance.htm )

                                                      Paulson Is Also Not To Be Trusted

                                 Secretary of the Treasury tells us that "the credit crisis over".  Sure, if you run a
                            central bank and the FED guarantees you can't fail..  He also said that the subprime crisis
                            "came about because of some bad lending practices."    Why, after decades of years of
                             experience evaluating borrowers and making loans, did lenders suddenly make so
                             many bad loans, all across the country?   . 

                                                                             Damnable Adjustible Rates
                                              Suck Them in at Low Rates, 0% Down. And Then Sock It To Them

                               "An example of the spreading credit crisis is seen in Don Doyle, a computer engineer at
                            Lockheed Martin who makes a six-figure income and had a stellar credit score in 2004,
                            when he refinanced his home in Northern California to take cash out to pay for his daughter’s
                            college tuition.  Mr. Doyle, 52, is now worried that he will have to file for bankruptcy, because
                            he cannot afford to make the higher variable payments on his mortgage, and he cannot sell
                            his home for more than his $740,000 mortgage.   “The whole plan was to get out” before
                            his rate reset, he said. “Now I am caught. I can’t sell my house. I’m having a hard time
                            refinancing. I’ve avoided bankruptcy for months trying to pull this out of my savings.”
                               ( See http://www.nytimes.com/2008/02/12/business/12credit.html?_r=1&oref=slogin )

                                                                              Elliot's Mess
                                   Greg Palast writes:

                                        "While New York Governor Eliot Spitzer was paying an ‘escort’ $4,300
                               in a hotel room in Washington, just down the road, George Bush’s new Federal
                               Reserve Board Chairman, Ben Bernanke, was ... handing over $200 billion in
                               a tryst with mortgage bank industry speculators.
    Both acts were wanton...
                               But there’s a BIG difference. The Governor was using his own checkbook.
                               Bush’s man Bernanke was using ours.  
This week, Bernanke’s Fed, for the first time
                               in its history, loaned a selected coterie of banks one-fifth of a trillion dollars to guarantee
                               these banks’ mortgage-backed junk bonds... Up until Wednesday, there was one single,
                               lonely politician who stood in the way of this creepy little assignation at the bankers’ bordello:
                               Eliot Spitzer. Who are they kidding? Spitzer’s lynching and the bankers’ enriching are
                               intimately tied...

                                    "Instead of regulating the banks that had run amok, Bush’s regulators went on the warpath
                              against Spitzer and states attempting to stop predatory practices. Making an unprecedented
                              use of the legal power of “federal pre-emption,” Bush-bots ordered the states to NOT enforce
                              their consumer protection laws.

                                   "Indeed, the feds actually filed a lawsuit to block Spitzer’s investigation of ugly racial
                              mortgage steering. Bush’s banking buddies were especially steamed that Spitzer hammered bank
                              practices across the nation using New York State laws.  Spitzer not only took on Countrywide,
                              he took on their predatory enablers in the investment banking community. Behind Countrywide
                              was the Mother Shark, its funder and now owner, Bank of America. Others joined the sharkfest:
                              Goldman Sachs, Merrill Lynch and Citigroup’s Citibank made mortgage usury their major profit
                              centers. They did this through a bit of financial legerdemain called “securitization.”   

                                "Do I believe the banks called Justice and said, “Take him down today!” Naw, that’s not how
                              the system works. But the big players knew that unless Spitzer was taken out, he would create
                              enough ruckus to spoil the party. Headlines in the financial press – one was “Wall Street Declares
                              War on Spitzer” - made clear to Bush’s enforcers at Justice who their number one target should
                              be. And it wasn’t Bin Laden. 

                                 "It was the night of February 13 when Spitzer made the bone-headed choice to order take-out
                             in his Washington Hotel room. He had just finished signing these words for the Washington
about predatory loans:
  Not only did the Bush administration do nothing to protect
                             consumers, it embarked on an aggressive and unprecedented campaign to prevent states
                             from protecting their residents from the very problems to which the federal government
                             was turning a blind eye.” ...
Spitzer was in Washington to launch a campaign to take on the Bush
                             regime and the biggest financial powers on the planet.    Spitzer wrote, “When history tells the story
                            of the subprime lending crisis and recounts its devastating effects on the lives of so many
                            innocent homeowners the Bush administration will not be judged favorably.”

                                          MANY AMERICANS ARE MUCH WORSE OFF
                                               THAN THEY WERE  8  YEARS AGO?

                              When George W. Bush took office in 2000, oil was $28 per barrel, the euro was $.87
                     on the dollar, gold was $274 per ounce, and the national debt was $5.9 trillion. Today, oil is
                     a record $123 per barrel, the euro is nudging $1.60 on the dollar, gold over $900 per ounce,
                     and the National Debt is $9 trillion. The country is presently trapped in the $3 trillion
                     war-quagnire0nightmare named Iraq.  The federal government's budget has balooned
                     35% under Bush.    Real wages are in decline.  Unemployment is rising as food prices soar.
                     Nearly 50 million Americans have no health care insurance.  A recession seems unavoidable
                     with interest rates at 3%.  What will we have when interest rates go back up to defend the
                     Dollar and fight inflation?  Even the NASDAQ is 400 points below what it was when Bush
                     took office. 

                            Bush stupid $3 trillion Iraq war played a major role in this.  Vastly higher US indebtedness
                     and rising oil prices were direct consequences of Bush's blunder.   Nor has the US achieved
                     any additional security.  After 9/11 the US had the sympathy of the world.  That was lost because
                     of Bush's arrogance. 

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                           Still, the Federal Reserve also has played a major role in bringing about America’s economic
                     decline. Greenspan’s lowering of interest rates, without imposing any limits to the gathering
                     housing bubble was guaranteed to bring disaster.  Zero-percent down, adjustible mortgages
                     were the equivalent of lettinf people buy stocks in 1929 with on 5% margin.  Now the banks
                     lumber on beneath a mountain of  non-performing loans and foreclosures.  

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                        (Credit = http://themessthatgreenspanmade.blogspot.com/2007/09/evil-comedic-genius.html )


                    Which Bank Will Get The Next Bailout?

                        Below, see how steady TigerSoft red distribution shows significant insider selling. 
                        For more discussion about these stocks, please see:

               Great Southern Bancorp Inc. (GSBC)

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                              CITIGROUP INC

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                         WASHINGTON MUTUAL
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