Feds just gave permission for another real estate BUBBLE.

[dixiegrrrrl]

From Denninger's column yesterday:

"I am speaking of the notion that went up the flagpole on allowing banks to refinance commercial real estate loans at more than 100% LTV - and having this "overlooked" by regulators.

Regulators, in a significant step, also said they won't penalize banks for performing loans where the value of the underlying property is now worth less than the loan balance.

The guidelines, released on Friday by agencies including the Federal Deposit Insurance Corp., the Federal Reserve and the Office of the Comptroller of the Currency, provide guidance for bank examiners and financial institutions working with commercial property owners who are "experiencing diminished operating cash flows, depreciated collateral values, or prolonged delays in selling or renting commercial properties."

This you gotta read to believe....what few regulations that are still intact will now be OFFICIALLY ignored.
http://market-ticker.denninger.net/categories/12-Regulatory

edited for emphasis of key sentence...

[AndyA]

1. WTF?

:wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf: :wtf:


I guess you have to consider the same parties who allowed/caused this to happen are still mostly in charge. If Obama really wants to bring about change to the American people and its government, he's going to have to FIRE some employees.

[TheWatcher]

11. Geithner and Bernanke would be a good start,

Fire them and JAIL them where they belong.

He should probably also fire Goldman Sachs.

Though it is a bit difficult to fire your boss.

I kid, I kid. :)

[inna]

2. Disaster capitalism in action.

:banghead:

[dixiegrrrrl]

3. un-f*****ing believable, ain't it?

All pretense of being legit...gone.
No more secrecy....flat out illegal criminal activity out in the open.
They must be very very sure of Congress, at this point.

[flyarm]

4. and they must be very sure of the American people who will make any excuse necessary for

their criminal behavior!

To many are too willing to look the other way..and play the suckers.

But one thing is for sure..eventually the price will be paid , but it sure as hell won't be the polititicans , or the bankers or the feds or the criminals.

Kiddies..your day is coming..maybe not tomorrow..but it is coming.

[Ruby the Liberal]

5. This is severely stupid.

Throw people out of their homes and ruin their lives, yet with the miracle of "corporate personhood", the company can just walk away, wash their hands of it and "no harm no foul" -- and no repercussions.

The mind boggles at the spaghetti they are throwing on the wall right now to see what sticks, while ignoring the economists who have been screaming at brick walls for all intents and purposes.

[Mira]

6. Til the bubble bursts again...this is so short sighted and

so horrible. K&R

[mullard12ax7]

7. We won't arrest war criminals and traitors, why should we stop this?

Until Americans realize we are an extremely corrupt nation and do something about it, like simply arresting the criminals, this type of "legal" crime will continue.

[Soylent Brice]

8. kick

[AtheistCrusader]

9. what the hell

how


why

no

[IrateCitizen]

10. Or course they did. This is completely predictable.

The goal of those calling the shots is not to fix the problems in the system (as far as they believe there actually ARE problems). It is to return the economy to where it was about 10 years ago.

Since the economy was based on asset bubbles back then, that's what they're trying to re-initiate. They are so wedded to that system -- it is "the air they breathe" in many ways -- that they probably cannot imagine any other way of doing things.