MSM talking about the Credit Default Swaps. (Derivitaves)
Submitted by netzorro on Tue, 09/30/2008 - 15:57Hopefully this wll reach the public and they can start getting the idea of what the real problem is.
"The $55 trillion question
The financial crisis has put a spotlight on the obscure world of credit default swaps - which trade in a vast, unregulated market that most people haven't heard of and even fewer understand. Will this be the next disaster?"
http://money.cnn.com/2008/09/30/magazines/fortune/varchaver_...
»
Note that Fannie and Freddie are to settle on Oct 6.
Maybe a threat from Foreign Sovereign Funds may have spooked Paulson and caused him to run around crying "the sky is falling" in order to pressure passage of the Bailout and assuage his heavily invested Chinese Masters before that ominous date.
Derivatives are little more
Derivatives are little more than one massive Roulette Game!
Rags make Paper; Paper makes Money; Money makes Banks;Banks make Loans; Loans make Beggars; Beggars make Rags
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
…Or Like A Craps Game In A Multilevel House Of Cards
http://www.deepcapture.com/umbrellas-casinos-and-the-end-of-...
With dice loaded and deck stacked and the dealers rigging the house rules mid shuffle, why wait to see what they pull out of their sleeve.
http://www.dailypaul.com/node/55223#comment-575266
Cash in your chips and head to the door before the tables are turned and goons in shades and headsets , with no necks in ill fitting suits and folded bulging arms block the exists.
This was 2001 and this guy is smart
JPM Derivatives Monster Grows
Adam Hamilton January 4, 2002
www.zealllc.com/2002/jpmgrows.htm
also, look at the leverage positions the big financial co regarding these derivatives.
I can't find it, but will post when I do.
how many "0's" is
$1 Quadrillion
15Rags make Paper; Paper
12 ZEROS IN A TRILLION, 15 ZEROS IN A QUADRILLION
Rags make Paper; Paper makes Money; Money makes Banks;Banks make Loans; Loans make Beggars; Beggars make Rags
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
Globally, this is a $600
Globally, this is a $600 Trillion Dollar anvil hanging over our economic heads, in fact JP Morgan Chase & Co. has over a $90 Trillion derivatives at risk...imagine that for just one minute. Credit Default Swaps are just a small portion of the larger derivatives problem.
AIG was primarily brought down, not necessarily by MBS, but by derivatives.
Rags make Paper; Paper makes Money; Money makes Banks;Banks make Loans; Loans make Beggars; Beggars make Rags
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
Not exactly MSM...
but the cat is wiggling its way out of the bag.
Jim Sinclair's Commentary
You really believe a $250 or even $750 billion "Great Train Robbery" is going to solve this? If so you are hopelessly brain dead.
$1 Quadrillion of Unregulated Debt At Core of Coming Derivatives Crisis
By John Tiffany
Despite all the blather and swearing-on-the-Bible pronunciamentos from establishment “pundits,” our house-of-cards financial system is not fundamentally sound.
Expect such indices as the Dow to tumble even much lower when the Pandora’s box of derivatives is fully opened.
Believe it or not, the Dow is still not far from its all-time peaks, with a lot further to fall. The depression is still in its early stages. We are looking at $1 quadrillion of unregulated debt, with much of it at risk. (And we used to think $1 trillion was a lot.)
These are literally inconceivable sums. Counting one dollar per second, it would take 32 million years to count to one quadrillion.
The stock market in this era of the privately owned Federal Reserve Bank is a giant craps shoot. Much of it is quite unregulated, especially the invisible market of derivatives. The sub-prime mortgage market collapsed, which is now being followed by a giant credit crisis. Now we are looking at the possible collapse of the derivative market.
More...
http://www.americanfreepress.net/html/coming_derivatives_cri...
If this is the "rescue" plan for even foreign banks
they are passing now then what shall we call it when what ever percentage of the 1 quadrillion in derivatives that are bad begin to stink up the place. Hey, maybe they can "bailout" the "rescue".
bump
bump
Present disaster!!
Don't they know this is the present disaster??!!
Now here's a question everyone should be asking themselves
Why would someone who is as financially savvy as Warren Buffit invest in Goldman Sachs, a corporation that is more than likely heavily invested in these CSD's?
Especially, when he said, just a few short years ago that they were "ticking time bombs?"
More questions; why would Paulson go down on one knee begging Pelosi to get this bill passed? Why is he that desperate? What is his stake in this bailout?
Could it be that he wants all this to go away, because if it doesn't there may be a good chance he could end up in prison? Is this why he is so desperate?
setting up a pre-election suckers rally
Hmm, interesting..
MSM can now say derivatives, ok (Credit Default Swaps)...but still, Project for a New American Century and Operation Clean Sweep are never to be acknowledged.
Historical perspective
This from Monty Guild at jsmineset.com:
"We thought we would share a NY Times article from nine years ago.
Politics, compounded with an explosion in the use of unregulated derivatives, and an SEC policy change in 2004 allowing investment banks to increase their leverage from 12 /1 to 30 /1 (or more) are the root causes of the problems facing the financial system today."
http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF...
Derivatives primer
http://the-great-retirement-experiment.com/Products/AIG%20Co...
‘All the kings horses…’
“…the egg only got larger and larger, and more and more human…”
--- Through the Looking Glass
by
Lewis Carroll
CHAPTER VI
HUMPTY DUMPTY
http://www.dailypaul.com/node/59659
`Don't you think you'd be safer down on the ground?' Alice went on, not with any idea of making another riddle, but simply in her good-natured anxiety for the queer creature. `That wall is so very narrow!'
`What tremendously easy riddles you ask!' Humpty Dumpty growled out.
`Of course I don't think so! Why, if ever I did fall off -- which there's no chance of -- but if I did --' Here he pursed up his lips, and looked so solemn and grand that Alice could hardly help laughing.
`If I did fall,' he went on, `the King has promised me -- ah, you may turn pale, if you like! You didn't think I was going to say that, did you? The King has promised me -- with his very own mouth -- to -- to --'
`To send all his horses and all his men,' Alice interrupted, rather unwisely.
HORSEPOWER AND HORSEMEN BEYOND THE PALE
http://www.dailypaul.com/node/62238#comment-664449
The way I understand it,
The way I understand it, people bought bonds. Then they bought insurance on those bonds. Now the people want their bond money back and think this insurance entitles them to get their money back.
This is the 62 trillion dollar elephant in the room. This is the house of cards.
Very good article....let's
Very good article....let's see just how hard this shoe drops and the reaction of the FED, Congress and the Treasury has to such events. It would, of course, be out of scope.
Rags make Paper; Paper makes Money; Money makes Banks;Banks make Loans; Loans make Beggars; Beggars make Rags
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
Excellent article
LivingTheDream
LivingTheDream
Its getting clear now
It is getting clear now why they are freaking out. A tsunami of epic proportions is heading this way, 55 trillion dollars of bad debt will crush the Central Banks of the World.
I bet you a dollar (in gold) that this is the message George W gave the two candidates.....
We need to start a Union and go on Strike!!!