OT: emus coming home to roost crash land at banks......

No metal content (other than gold and silver).
Far larger than chickens are the off-the-books emus crash landing at the banks as they come home to roost [and poop].
The recent troubles with the GSEs Freddie and Sally have flushed other real estate related debt to the surface. One bank [Citigroup] has 1.1 Trillion [with a T] $US of off-the-books/off budget debt about to crash through the ceiling.
========"Citigroup's $1.1 Trillion of Mysterious Assets Shadows Earnings
By Bradley Keoun Enlarge Image/Details
July 14 (Bloomberg) --
At an investor presentation in May, Citigroup Inc. Chief Executive Officer Vikram Pandit said shrinking the bank's $2.2 trillion balance sheet, the biggest in the U.S., was a cornerstone of his turnaround plan.
Nowhere mentioned in the accompanying 66-page handout were the additional $1.1 trillion of assets that New York-based Citigroup keeps off its books: trusts to sell mortgage-backed securities, financing vehicles to issue short-term debt and collateralized debt obligations, or CDOs, to repackage bonds. "
for complete article click on http://www.bloomberg.com/apps/news?pid 601109&sidliVM3tG3aI&refer=home
also see http://www.iht.com/articles/2008/07/14/business/14bank.php http://www.bloomberg.com/apps/news?pid 601087&sid=ayPInNKqkMdc&refer=worldwide
and the band played on.......
Unka' George [George McDuffee] ------------------------------------------- He that will not apply new remedies, must expect new evils: for Time is the greatest innovator: and if Time, of course, alter things to the worse, and wisdom and counsel shall not alter them to the better, what shall be the end?
Francis Bacon (1561-1626), English philosopher, essayist, statesman. Essays, "Of Innovations" (1597-1625).
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The article was surprisingly good. Apparently, a lot of bogus accounting was being done, all to inflate the profits and not count the value of "guarantees" given to various parties.
The scam was as follows: you would give me money (which I would record as profit) and I would give you a guarantee that some investment will never fail (which I would NOT record as an expense).
The result was outstanding profits and big management bonuses.
i

http://www.bloomberg.com/apps/news?pid 601087&sid=ayPInNKqkMdc&refer=worldwide

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