Wednesday, February 9, 2011

Brian Westbury - Unanimous Choice for All Imbecile Team

A good friend (thx R.S.) who is very familiar with my ranting and raving on the necessity of mark to market accounting and the abject lunacy of those opposing it forwarded me the following piece from First Trust. I thought I would share it with my readers to show you that the lengths to which the vested interests will go to keep the Great Ponzi running.

In their Monday Morning Outlook piece entitled FASB Surrenders - America Wins, chief economist or more appropriately in my opinion primo imbecile (as the Italians like to say) Brian Westbury and his secondo imbecile Robert Stein completely embarrass themselves.

First up they start out with this statement.

"The Financial Accounting Standards Board (FASB) wanted to broaden the reach of its fair value accounting rules. Somehow it believes that marking everything to market (even when that market is illiquid) will somehow make the world a better and safer place. So, even after almost destroying the economy in 2008, FASB was pushing to have banks mark their loans – yes their loans – to a bid in the market place."


Good to see Westbury and Stein were trained at the Bill Isaac school of misinformation. I want to share a little secret with Brian and Bob and Bill Isaac if he cares to listen. When any asset is marked to what the market says it is worth the world IS MOST CERTAINLY a better and safer place as opposed to one where bankers and their bought and paid for regulators, whose income and career paths respectively are dependent on said asset price's level, get to pick and choose the price.

What both First Trust's imbecile 1 and 2 refrain from acknowledging is that leverage is the killer with mark to market not mark to market itself. When the market is illiquid, that is buyers non-existent, and you don't like the bid then you simply don't sell. But when you are leveraged to the eyeballs and the buyers have left the reservation taking with them your bonus dependent club membership, trophy wife, house in the Hamptons etc well then, I can fully understand your all out assault and assassination on the concept mark to market accounting.

I encourage both Mr. Westbury and Mr. Stein to watch the following instructional video on mark to market in Philadelphia, Pa.




Imbeciles Westbury and Stein go on in their piece, like good foot soldiers in the perpetuation of the Great Ponzi, to state this gem:


"The good news, which went virtually un-reported on January 25, 2011, was that FASB surrendered on fair value accounting for loans. In the face of overwhelming opposition,
banks will be allowed to carry loans on their books at amortized cost, reflecting cash flow (payments), as well as reasonable estimates of likely loan losses."

You mean kinda like the reasonable Irish estimates of how much dough they were gonna need from the taxpayer to avoid Armageddon and bail out the banks? Hey we need 35 bill, no... scratch that, we need 50 bill. Nope scratch that too.. we need 70bill.

Damn ijits.

Westbury and Stein go on to extoll the merits of their position stating:

"This decision is a huge win for the markets and the economy. Like the sword of Damocles, mark-to-market accounting has been hanging over the head of the economy. As long as it could be broadened, or brought back in the form it took in 2008, the risk of turning the next recession into a panic or even a depression was very real."

Sword of Damocles is it?

I just love crumb chasing/Wall St. hyperbole. Funny how it wasn't hanging over the markets head like a sword of Damocles when prices were rising. Is anyone else sick and tired of the paid shills schtick yet?

Messrs. Westbury and Stein then follow this up with yet more garbage:

"Most people don’t know this, but mark-to-market accounting played a role in the Great Depression. According to Milton Friedman (in his book The Great Contraction), fair value accounting was the predominant force for bank closures in the early stages of the Depression. These bank failures fed on themselves making the Depression worse."


3 words for you Westbury, your water carrier Mr. Stein and Milton Friedman..... horseshit, horsehit and horseshit ! Plain and simple.

The only people who believe mark to market and fair value accounting was the predominant force for bank closures in the Great Depression are morons, paid shills, American Idol historians, and Dancing with the Stars devotees. Oh, and Wall St. propagandists.

I have a question for you Mr. Westbury regarding role players in the Great Depression.

How about monumental leverage and greed ?
How about allowing investors to buy illiquid shares, margined 10 or 20:1 ?

I am shocked Westbury and his boob assistant are still employed at First Trust after penning this piece of garbage. Do you think at any point during the construct of this laugher the under-imbecile Stein said anything remotely close to something like,

'hey Boss, do ya really think mark to market is responsible for the mess? I mean, do you really buy that Friedman shit? I mean that video said that you can claim its worth anything but when someone will only pay...'

Then do you think after saying that did Bossman-imbecile Westbury say something like:

'hey Stein don't you like your job? Don't you like your window view. We don't pay you to think we pay you to propagate now go along and propagate'

Actually I am not shocked they are still employed, as they need to generate cake slicing, hence crumb generation. Quite frankly in all likelihood Westbury and his bellman will be promoted to double senior VP and managing directors which now make up 80% of the staff there, too funny.

Really, I just made that up about 80% of the staff at First Trust being managing directors and VP's but isn't it odd that everyone you run into from Wall St. is a managing director or VP
.

Anyway our First Trust economic pundits go on to state that:

"It was on March 9, 2009 that Barney Frank’s committee announced a hearing on fair value accounting. FASB was brought to the table and forced to correct its misguided rule. The stock market bottomed on that day and has virtually doubled since then. The recession was not ended by stimulus, TARP, regulations, PPIP, or any of the other alphabet soup government programs. It was ended by the correction of markto- market accounting. The risk of another Depression ended on that day and the economy and market have done nothing but move higher ever since."

What a circular piece of mumbo-jumbo bullshit. The stock market is going up so the economy must be getting better? But it went down because of short sellers right?

So the day accounting make believe became legal, the day extend and pretend was institutionalized, the day delay and pray became gospel, everything has gone up.

Basically from this I am to understand Mr. Westbury, that we are to have the utmost faith in your assertion, that mark to market was the culprit because asset prices, which you said were wrong before because they were down, now all of sudden are going up and are now correct.

Actually, I owe Westbury and Stein a big thank you for their work as they yet again have proven why I rant and rave at the lunacy and danger that the financial terrorists on Wall St. pose to our society.

It is really sad if you think about it for after paying top dollar in fees and crumbs (commisssions) to Wall St, for all that purported AAA paper that was nothing but toxic shit packaged and peddled to them, institution after pension fund after endowment fund keep coming back for more. Like paying for this useless drivel that masquerades as astute commentary and analysis.

Breathtaking.

Oh yeah, I almost forgot. Brian Westbury gets a unanimous spot on my All Imbecile Team to boot. Congrats Brian you deserve it.



Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

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