Posts Tagged 'credit crunch'

Pigs are clean animals? Yeah, you bet!

You’ve heard that stupid expression haven’t you?

Here’s how clean they are.

 

Was it ever just a credit crunch? Of course not!

Outrageously stupid.

Update: Newsnight might have underestimated the scale of the derivatives scam: “Derivatives Trade Soars To Record $681Trillionwrites Michael Shedlock, December 11, 2007, quoting a bloomberg published report  Bank for International Settlements [BIS]

Due to numerous distractions, it’s take a couple of days to write this. If what I say here is old hat then sorry.


Still from Newsnight (BBC2)’s program on Credit
Default Swaps (see refs below and please watch Alez Ritsons
excellent and worrying report on the matter) showing the
astounding level of these corrupt derivatives present in the
market’ today. Source reads: ISDA – see later.

I’ve been a wee bit angry of late about all this HIDEOUS FRAUD that’s been going on in the financial ‘markets’. In ye olde times, a market was a place where principally goods (but also some services) could be bought and sold. A market today is just an impression of Ladbrooks.

One of the things get really got my goat recently is the mantra that: “We have to rescue these banks to be done to stave off collapse” – ‘Collaspe of what’ I ask? Are you referring to the collapse of the financial fraud mechanisms? Mechanisms by their very nature made us end up here??? We need to preserve that?????? Is it so crazy to suggest we shouldn’t preserve that? Let the scummy banks collapse. Screw them! Let anyone whose mortgage is with a bank that’s gonna die, keep their house, teach the pigging banks a lesson.

Tossers!

Why not punish these frigging banks for the crap they have done, are doing and will do in the future? And for those who engaged in speculation, take back their corrupt wealth. Leave them with enough savings to match the national average and tell them to get the hell out of our eyescans. Anyone who dealt with speculation w.r.t. consumables/food, do the same to them, but sling their arses into the countryside to start producing food rather than destroying it.

liquification injections.

If the ECB, Fed, CBJ and other central banks can coordinate to (get this…)inject liquidity” then surely they can coordinate a global purge of speculators. But to move on, where did all this ‘liquidity’ come from and what exactly is it made of? –beware of what your told– Pure (non-financial) speculation here, but is it likely all this ‘liquidity’ (assuming it was cash) was piled high in the corner of some kind of vault, doing nothing, just waiting for something like this to happen which amounts to the tune of hundreds of billions? No, of course not. That is most unlikely indeed. What is likely is that what we see now with the bailout/injection-central-bank-mechanism, it’s just the latest (and probably the last) bubble.

The bubble is the corporealization by utter pretencethat everything is all right. Yip, it’s YET ANOTHER CONFIDENCE SCAM, like all the financial scams before it. You see, if the public perception is that everything OK, people won’t withdraw their money and won’t sell their shares. Should TPTB manage to succeed they just might get away with it. I mean who’s to know? if this injection is genuine or not? The Bush, Paulson, Bernake,  Brown and Darling brigade are just like the orchestra and the officer class on the Titanic. They play the dulcet tones of firm action to try and make the passengers think everything’s OK while they go around proclaiming it’s unsinkable.

 

What we do know is that this capitalism crap has proved to be a misery on the world. It’s something that only benefits a few who lets be honest, couldn’t give a rats gonad about you, your family or you life in general.

Lets take a quick look: Japans economy has been pants for ages. It offers zero (or near zero) interest rates. It is said large amounts of Yen have been borrowed to purchase tangible profitable assets overseas making for nice little earners. Now we being ‘told’ (be careful!) the ‘market’ is now more liquid and banks can start lending to another again… {remember: so they can continue to do exactly the same crap as they did before}.

Germany’s economy’s been poor for while, The UK’s isn’t go great and the US is… well lets just say the Iraqi resistance have something else to cheer about.

Although the Fed is a private bank and the BoE pretends hard not to be, why would they be willing to shove their private wealth into bolstering the financial system we know is is a heap if crap? It’s pretty likely it’s going ot be for one reason and one reason only – that is because it’s in their interests to do so. That interest will be to preserve their wealth and status an/or offer the chance of enhancing those privileged positions. They aren’t doing it for our benefit at all, other than to stave off any revolt by the ordinary class, but that’s as likely to happen as Tony bLiar telling the truth. Revolution is still a long, LONG way off, so we are looking at motives of financial furtherance here, and in the same way it was us who helped them achieve that status, sadly it will be us once more who help them maintain and strengthen that position in the coming years.

As for the banks and the gambling pits or Investment houses as they call themselves, portraying a venir of respectability, their intertwined packages of bets and gambles, unpacked, rearranged repackaged bets are set to be expunged. Resetting the mileometer so to speak. Basically all the dirty deals are washed clean and will be forgotten about. There is no way (in effect) buying all this bad debt will ever pay off.

AIG was kept afloat because of it’s it is a great money collector selling basically nothing (insurance it cannot assure) and can suck in peoples money for nothing in return. Insurance and for the great unwashed is a great way to take their money off them, especially when in countries like the UK it is illegal not to have some forms of insurance. And you can bet in the near-future, if any claims get to big, the ravenous wolverine lawyers will be dispatched to deal with any claimants should they be unable to find some clause (font size 3) in their small print, or failing that just declare themselves bankrupt (see financial ‘product’ innovation below)


Duckman Max tells it how it is. US $ is worth bananas!
Max I love you (In a heterosexual matey kinda way)

 

Financial ‘product’ innovation:

Robert Pickel, CEO International Swaps and Derivatives Association (ISDA), in Interview on Newsnight about regulation[see link below], calls credit default swaps ‘products’ and says doesn’t want regulation because there are “sufficient regulations in place.” He continues:

The unregulated status is something we advocate as an organization, is that there are sufficient protections [he means regulation] in place and that another layer of regulation will add cost and reduce innovation [!!!] in the market place, and that’s not a good thing

– What? You don’t agree? You mean the 110,000 jobs to go at AIG’s UK arm is more important than investment brokers? What are you??? Bonkers or something? {sarcasm}

Board member 1: I want to buy this company that shows great potential for profitability.
BM2: But the cost of the loan we’d need to take on will bear heavily on our companies accounts. We many not be able to afford it.
BM1: It doesn’t matter. Look. The banks are desperately short of cash right now. They’d welcome any opportunity to make some money quickly. The published profits of the company we want to buy will be a very persuasive argument to the bank that we will be able to pay it off. If they are still worried, tell them we have a way of guaranteeing the loan. We take out a credit default swap policy on out loan and we will also sell one to the bank, the costs of which are Incorporated into the primary capital. Worst comes to worst, and our company struggles to pay, we either call in the swap and the bank can do so too nobody looses, and we can also cash in our personal CDS’s too. Just make sure you use your anonymous off-shores to do that. We don’t want the taxman sniffing his nose around. Not only that, we can derivatize the aquisition so if the purchase is profitable for our company, we win yet again.
All Board members: *collectively*   WOW !

 

Financial lobboxery on the MSM

Yesterday (Thursday) (or was it Friday? all my days are getting mixed up – no sleep you see), the miserable amateurish coverage of what’s happening on BBC World showed an interview with that most hickory of knobs, Alistair Darling, said something like…

We will act to preserve stability in a period of turmoil.” – WHAT??? Is he taking the piss? preserve stability in a period of turmoil. Which of course the fawning BBC let go into across the airwaves completely unchallenged as it almost always does.

The ‘pound-a-punnet pundits’ on the BBC were wheeled on in familiar style to treat us with yet more monstrously moronic manufactured mucal musings about the whole affair, explaining what had happened without actually explaining anything, all the time given free ride to spouse their drivel.

And that BBC presenter who was alongside Johnathan Charles. Geeezzz! She was like a fish out water (or a bank out of credit). She stuttered and stumbled to say anything, covering up her ignorance by nodding her head sporadically, gesticulating and saying ‘yes’ a lot.

For heavens sake.

It’s all pants.

When (if) the dust settles, There will be no change in the financial system. If capitalism is to be adhered to, Banks, inveztment houzez and members of the public will once again spend time and effort to look for the next scam that will earn them money, spending little or no time to really ask themselves who pays, not that it would have much effect on many who upon studying it, would realise engaging in such practices is essentially what keeps 3billion people on $2 or less a day.

My blood was boiling the other day and managed to stop me falling asleep in the middle of work, (it’s still pretty warm today) and I declared I was glad in a way I am glad that the fingers of some of the small fry would be burnt as their unthinking actions in depositing money in high return schemes end up in these scams, but I’m not holier than thou. I too have drunken from the poisoned chalice, as do those close to me, but as I’ve learned exactly what this ubiquitous global financial fraud does, I am engaged in detaching myself from it. I urge you all to do the same.

God bless.

————————————-

Update:

Today Dateline London (Saturday BBC World) was on (Gavin Estler). 2 talking heads with him was Michael White of the Guardian and Daniel Hertzberg of the WSJ.

Estler said in regards to Bush’s spending on Fmay, Fmac and AIGsomething like "You can get away with it because of the war [the War OF Terror, War against Iraq and War against Afghanistan] and security" – WHAT? Who the hell mentioned that. The marraige of what the BBC tells us (therefore lobbox) are necessary bailouts is somehow linked to the war effort. Ester lets rotspeil run away with him at times (00:00 to 23:27).

Michael White amusingly said “Rosevelt in the 1930’s taking on Wall St, [Actually Michael, I think it was the FED] drove the money changers out of the temple on Friday, but they were back again monday morning”. Not so amusingly White said moments later “Gordon Brown stopped the poor getting worse, all the data backs it up” – What??? I hope Mr. Stains gets his old rival on that one, although Stains displays exactly the kind of crap I really dislike ate amongst the wheeling-dealing public, that is practically bragging about his activities in the market. I’ve heard a number of other tales of how economic bravado selling their shares and so on while the going was good, as if when the good times were on, what they were doing was ok, good even, displaying a respectible financial acumen. All without consequence of course. None of their money supplied the investment houses did it?

Hertzberg said “They are making it up as they go along” – that pleased me. Someone identifying the nonsensical bumpf, but then made me angry again when he said “How do we know when it gets better? When banks start lending to each other” – AAAGH! NOOO A return to the top of the maneur heap isn’t the way. That tired expression is just what the donkey has brayed out. Don’t follow the same rubbish in financial pundity. Use your frikken brains!

Is there nobody left sane? Isn’t there someone who is actually learning from all this?

Refs:
Not that there’s a shortage of stuff to read on this topic, but here’s a few refernces and articles:

 

Credit Default Swaps – the next crisis?pt1  – Newsnights program. Youtube

Credit Default Swaps – the next crisis?pt2 – Newsnights program. Youtube

there is quite a few YouTube videos about CDS’s (in Mike Gasior)- check them out.

 
‘The World As We Know It Is Going Down’ – By: Marc Pitzke

China Blames Wall Street Meltdown On Fed Overissuance Of Currency
By: Paul Joseph Watson & Yihan Dai 
– Saving financial institutions at cost of taxpayer part of wider agenda to increase control over global economy, says Communist state media.

 

 

AIG’s Dangerous Collapse & A Credit Derivatives Risk Primer – By: Daniel R. Amerman

 

Examination of financial deritatives – scams included.

It seems likely that the derivatives ‘market’ are a most powerful of the powerful scams entertained by the fraudulent financial system we have today.
http://www.theponytail.net/DOL/DOLnode8.htm

Such things would be impossible under an Islamic system of economics.

Essentially, a derivative is a bet/gamble. The bets are categorized according to some familiar recognisable conditions, such as “futures” and “options” etc.

One might think of ‘interest(rate)’ as being the greatest evil and in most respects you’d be right, becasue it is the doorway through which every other bit of dirty trading, such as derivatives, has come. But what makes derivatives so much more dangerous (IMO) is (that the graphic above highlights) is that you can bet upon a bet.  And it doesn’t stop there. You can then go ahead and then bet upon a bet upon a bet, and so on. – This is similiar to what ‘rogue traders’ (incidently, there only rogue when they lose and therefore gain exposure) like Nick Leeson did. You can try and bet away a bad bet, if that one fails you repackage and wrap your lost bet in an even bigger bet. And it’s not just people like Leeson or Societe Generale’s Jerome Kerviel who do it.

“Professional investment may be likened to those newspaper competitions in which the competitors have to pick out the six prettiest faces from a hundred photographs, the prize being awarded to the competitor whose choice most nearly corresponds to the average preferences of the competitors as a whole; so that each competitor has to pick, not the faces which he himself finds the prettiest, but those which he thinks likeliest to catch the fancy of the other competitors, all of whom are looking at the problem from the same point of view.”

“It is not a case of choosing those which, to the best of one’s judgment, are really the prettiest, nor even those which average opinion genuinely thinks the prettiest. We have reached the third degree when we devote our intelligences to anticipating what average opinion expects the average opinion to be. And there are some, I believe, who practise the fourth, fifth and higher degrees.”

Keynes, John Maynard The general theory of employment, interest and money. (London : Macmillan, St. Martin’s Press, 1936. page 156.

Quote taken from: http://www.projects.ex.ac.uk/RDavies/arian/scandals/derivatives.html

Bets can be swapped or sold many times over resulting in derivatives being highly complicated, highly interdependent and highly intertwined. If you don’t already, you should by now be having alarm bells going off in your head.

The amount of fictional money that can get tied up is enormous and it’s usually based on virtually nothing. It’s quite similiar to gambling on credit.

Fractional reserve banking is despised by virtually every Joe Soap who (thanks mainly due to the internet) learns about it. Fractional reserve banking involves say, a bank which has $1,000 in its vault being able to  lend out $10,000 or $100,000, that is 1000% or 10,000% respectively the amount it actually has in it’s vault. {example given featuring fractional reserve banking at the 10% or 1% level respectively)

We despise it for a number of reasons, one of which is becasue we have discovered a scam previously hidden from our eyes which we know is fundamentally wrong/corrupt or at the very best, bad practice.

I’m pretty sure that instinctive sence of right & wrong would make us detest financial interest(rates) if we came froma situation whereby it had never been part of out lives, but then suddenly imposiiton of use of interest(rates) is levvied upon us. However, being brought up with interest(rates) as a way of life has clouded our humanistic default hatred of it. And in fact, we are encouraged to engage in it. It’s spun sometimes as being “good”, for example when we chase high interest(rate) savins deposit accounts.

We put our $20,000 in the bank (which it then puts in its vault and then can lend out $200,000 {10% fractional reserve banking} at say 3% as a mortgague for instance, giving an interest payment of 6,000 over 20 years (=$120,000 in interest) plus the capital sum of $200,000, meaning the bank will get paid $320,000 from an initial amount of just $20,000 from you. They might offer you a 15% interest rate on your savings account and so, per year you’d get an extra $3,000. Yet they got $6000 per year, double what they give you, from a loan which they could only offer in the first place becasue you depositied your money with them.

And of course every year they have an extra $3,000 real cash (sadly the mortgague payer can’t pay the loan with conjured up money – but there ins’t anything to stop banks conjuring money!!) which then can go into their vault and become an amount of $30,000 on offer for more loans !!!

& Lets not forget the conditions they impose upon you for using their account. Typically: You can’t withdraw more than a small amount at a time and/or you must maintain a certain amount of savings or end up paying a nasty penalty (giving the banks more real cash to put intheir vaults etc.. etc…) gobbling up YOUR money.

So are these high interest(rate) accounts really “good”?

If you think yes, then you’ve forgotten probably the most painful part about it. Who ultimately pays for your interest? The people who bear the heaviest brunt of this is the most of the 3,000,000,000 people on the planet living on or below the $2 paper dollars a day line (the ‘standard’ of gaguing severy poverty). They pay. So unless you have no heart, surely you can no longer think of interest as good.

{Re: diagram. Some simplification yes, but not bad I feel for 478×533}

Disagree? Perhaps you havent read ‘Confessions of an Economic Hitman’ by John Perkins.

The thing about interest is that it plays a vital role in almost all derivatives, and the people that lose when big powerful companies decide to ‘cash’ in on their derivatives {or hold on to them until they will increase in ‘value’} is naturally enough those LARGE companies and not the majority of people (even in 1st world countries) who aren’t involved in them.

I’ve just started reading Matthias Chang’sThe Shadow Money Lenders” and already in the introduction it’s plain that the scope of the the scam – the derivatives market, is monumental. Cheching out the Apendices, as of Sept 30, 2007, JP Morgan Chase & Co had about $92,000,000,000,000 that’s USD $92 trillion dollars worth of derivatives yet only $1 trillion worth of assets. And this pattern is repeated across the board. Citygroup is next, $39 trillion derivatives, $2.4 trillion assets. This pattern repeats itself for the 25 magacrop institutions presented, giving a total derivative holding of $179 trillion yey only $10 trillion assets.

Almost 18 times the amount of bets and bets of bets (sometimes called hedges) the amount of extra phoney money deeply intertwined across the rotton international banking sector.

Hopefully now the scale of what’s coming is evident. LTMC’s collapse in 1998 simply becasue the Russians defaulted on a bloody loan, was said to have been a whisker away from total collapse of the worlds econony i.e. revelation of the fraud and it’s total disentanglement, {info here and yet more derivatives scam stuff} but since then the market has mushroomed, which to me was the bubble necessary to encapsulate and stave off the milder collapse LTMC would have brought about.

The Future’s bright. The future’s orange.

P.S. and oddly enough, Orange County in the US lost $1.600 million ($1.6 billion) by “trading” derivatives. Wikipedia says of the matter:

“Orange County is a good example of what happens when derivatives are used incorrectly” WikiLobbox.

 Ho Ho! that’s funny! Well even though much money is probably phoney anyway, but in a phoney system, it’s pretty near real!  But the point here is, the characteristic of derivitives is that somewhere, someone will get burned, like all bets, and that’s their characteristic consequence not the accidental misfurtune [punn not intended] as Wikilobbox portrays.

 

“Gowin down…”

Update:

Bernanke’s State of the Economy Speech: 

“You are all Dead Ducks”  

By Mike Whitney, 16/02/08 “ICH

Even veteran Fed-watchers were caught off-guard by Chairman Bernanke’s performance before the Senate Banking Committee on Thursday. Bernanke was expected to make routine comments on the state of the economy but, instead, delivered a 45 minute sermon detailing the afflictions of the foundering financial system. The Senate chamber was stone-silent throughout. The gravity of the situation is finally beginning to sink in. Continue…

— End of Update —


 

Chimpy and Chumpie.

 ‘Go-win Down’ Sung lyrics that have engrained themselves within me having suffered a cursed loopback by a obsessive Aerosmith fan. Actually I kinda got brainwashed into liking it after a bit, but don’t for heavens sake tell that to the Aerosmith wannabe groupie.

  Anyway, up to 2 trillion, thats 2,000,000,000,000 (two thousand billion, or 2 million million) has now been “lost” ( space don’t stand a mark against the vastness of the Zio-cons pockets) and there is what is called ‘a credit cruch’ which for those new to my wittering and twittering blog is said by those officials who know about this kind of stuff means an end to easy credit. 

Edit:: …forgot a main point… Burrmonkey, sorry, Bernanke today signalled that additional US interest rate cuts were likely. Howeverm lowering the cost of credit when were told there isn’t any easily available credit, just woesn’t square it with me somehow.

But now Burrmonkey, sorry, Bernanke, (which again for those who don’t follow such things heads a scam “bank” which owns a rather fast printing press, instigates scam policies, buy selling scam paper to the US government, which pays interest back to the same scam bank) is now giving official acknowledgement that the ong awaited death of the US economy is coming.

cryptic.jpg

Just a pity decent USans are being caught up in this too.

 Strange how the price of Gold has changed since mid 2001 (when some fruit cakes said Tush, sorry BuSh and his Ziobuddies decided to invade Afghanistan – N.B. months before before 9-11) has gone from about $270 to about $900 an ounce (333% increase – tq Paul !) while the scam propping up the dollar has succeeded in only losing 21% of its value in the same time frame, from $1.66 in 1998 to almost $2 in 2008.  

I wonder who bought all that gold the British sold in 1999, that mass murderer Tony bLiar and accomplice to murder, Gordon Brown decided to sell when gold was ridiculously cheap, a snippet at only $270 an ounce? What of the gold at the WTC that went missing? Why has Fort Knox never been audited?

Anyway… I digress, such is the difficulty in controling the power of the conspiraloonacy force that dwells within me, the US Economy is going tits-up as they say (what does tits-up mean anyway??? – I dare not Google it !). 

All eyes now point towards occupied Palestine, führer, sorry, further towards the fulfilment of the self-willed neo-Nazi Zionist capital – Occupied Jerusalem, as the centre which wields control over Ziocorp global. But I’m just a fruit cake. What do I know?


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