Weiss Treasury Only Money Market Fund

Martin D. Weiss writes: The proposal before Congress for a $ 700 billion mega-bailout is far too little to repair the damaged debt and derivatives markets ... and at the same time, too much for investors and taxpayers who must put up the money.
What is the magnitude of the problem, really?

In the past, Congress has repeatedly asked us for information and analysis on these issues, and we anticipated in the congressional testimony and white papers. In this same tradition, is less than a first partial draft of a white paper we will refer to this topic:


Why the size of the mortgage debt and derivatives crisis overwhelms the plan $ 700 billion bailout currently under discussion in Congress
(Partial first draft submission of research Weiss
Congress and federal regulation of banks)
Last week, the President, the Treasury Secretary and Fed Chairman announced their view that Congress must get to the root of the debt crisis in America by providing a comprehensive solution that truly puts the crisis end.
However, the magnitude of the crisis afflicting mortgages, other debts and derivatives clearly overwhelms the proposed $ 700 billion rescue discussion. To better understand the magnitude of the problem ...
First, we urge members of Congress to disregard data based on the list of troubled banks maintained by the Federal Deposit Insurance Corporation (FDIC).
The FDIC's list of only 117 institutions with $ 78 billion in assets. But given the current proposed rescue of 700 billion dollars, it is clear that administration officials implicitly acknowledge that the FDIC list minimizes the problem. There are many more financial institutions at risk or in need of assistance with their toxic paper.
How many others? We believe that more accurate comes from our analysis: (a) the derivative risks assumed by major banks, (b) the mortgage portfolio of the largest regional banks and (c) all banks and institutions Savings with TheStreet.com 's financial strength rating of D + (weak) or less. Based on this analysis, we believe:
1479 Member FDIC banks are at risk of failure with total assets of 2.4 trillion dollars.
In addition, 158 savings and loans at risk with 756 billion dollars in assets.
In sum, banks and S & L risk assets of 3.2 trillion dollars, more than 36 times the assets of banks on the watch list of the FDIC.
These figures indicate that only 700 billion forecast for the rescue plan could be seriously inadequate.
Second, Congress should seriously consider the facts in the Federal Reserve flow of funds report second quarter.
In this report, published on September 18, just one day before the President announced the administration's proposal to rescue $ 700 billion, the Fed said that the mountain of the nation's interest-bearing debt rose to 51 trillion dollars.
In addition, it provides a critical overview of the extent of additional debt problems facing the nation, as follows:
1. The ownership of residential mortgage loans are scattered across many sectors. There are 12.1 million trillion dollars in mortgages on single and multi-family homes in the United States. But they are not held by banks and S & Ls. They are distributed among a wide variety of institutions and individuals who may have similar claims to federal assistance.
Specifically ...
2. Fannie, Freddie and GSAs are still at risk. As a first priority, the plan would expand the recently announced rescue of Fannie Mae and Freddie Mac to properly secure the residential mortgages held by the government-sponsored enterprises (GSEs) and agencies (GSA). These now total $ 5.4 billion, according to the Fed.
More ...
3. Private and local governments also own residential Mor.