Sick article on Derivatives......

[Anaconda]

Quote from intradaybill:


You are a troll.

I'm the troll yet you're the one calling marxists as the cause of the financial crisis.

You have zero idea how the deregulated banks work. You have zero idea of how Fed lending facilities work for the big banks which are part of the system. Isn't it interesting that small local banks which are not part of the Federal Reserve system do not have Level III assets?

I've actually worked alongside people who did the CDS/MBS/RMBS process, including trading, placement and "valuation" for the books. While you just plan to blame socialists/communists/marxists which have nothing to do with this topic.

Retard. Look out your window, the short yellow bus is waiting for you to take you to the special needs center. Don't forget to take your medicine.

 

[Anaconda]

Quote from jimbojim:

What about reserve requirements when doing something like that?

I don't see the problem in this case. If the mortgage based secutiry loses its value then the bank owes less or nothing to the issuer and it still makes interest on the loans.

The best comparison that I can make is Enron. Phantom assets.

 

[asap]

Quote from TGregg:

He is. Here:

http://www.elitetrader.com/vb/showthread.php?s=&postid=2339814#post2339814

he posts about most of the people in the world are "starving to death". When he finally understands how flaming stooopid that comment is, he corrects it to mean several hundred million people are starving to death.

Put him on ignore like everybody else does.

how thoughtful of you.

every day 25 thousand people die of hunger.

why dont you show some respect instead of flaming the poster that brought that up?

 

[intradaybill]

Quote from Anaconda:

I've actually worked alongside people who did the CDS/MBS/RMBS process...

Alongside you mean the local deli?

Take it easy and try not to insult people.

"Nonmember banks must maintain a portion of their transaction accounts and time deposits at a Federal Reserve Bank to meet Reserve Requirements, but have access to the Federal Reserve Discount Window and other Fed services on the same terms as Federal Reserve member banks."

http://www.answers.com/topic/nonmember-bank

"Member banks are required to purchase stock in the Federal Reserve Bank in their districts. Half of that investment is carried as an asset of the member bank. The other half is callable by the Fed at any time. Member banks are also required to maintain a percentage of their deposits as reserves in the form of currency in their vaults and balances on deposit at their Fed district banks."

Like many other trolls you read the history of the Federal reserve but you don't know how the modern system works.

http://www.frbsf.org/education/activities/drecon/answerxml.cfm?selectedurl=/2003/0310.html

For banks:

Assets = loans

Liabilities = deposits

This fact has historically confused trolls like you.

Plonk!

 

[Anaconda]

Quote from intradaybill:


For banks:

Assets = loans

Liabilities = deposits

This fact has historically confused trolls like you.

Plonk!

Yes and that is exactly why when Level III had to be re-valued to what they were worth (almost nothing), all of the sudden these banks had no equity and became insolvent. All of the sudden, liabilities exceeded assets by a huge margin. I wonder how all those liabilities got racked up in the first place.
It must be all this guy's fault:

<a target='_blank' title='ImageShack - Image And Video Hosting' href='http://img233.imageshack.us/my.php?image=karlmarxmeddk7.jpg'><img src='http://img233.imageshack.us/img233/1257/karlmarxmeddk7.jpg' border='0'/></a>

Thanks for setting me straight. I think I agree with your friends after all:

<a target='_blank' title='ImageShack - Image And Video Hosting' href='http://img261.imageshack.us/my.php?image=retards9b43f5rh1kq9.jpg'><img src='http://img261.imageshack.us/img261/3127/retards9b43f5rh1kq9.jpg' border='0'/></a>

 

[jueco2005]

Quote from toc:

Folks,

it's time to buy land near some silent river in south where winters are not harsh and live by farming until the financial mess is cleaned out.......do not forget a gun with lots of ammo and stockpile of medicines for general needs.

Tomorrow—What It Will Be Like, by Herbert W. Armstrong.

Thank you for the article it was really good.

 

[Renegen]

Anaconda is not a troll, he taught me something I didn't know today.

Anyone who would put someone on ignore because they taught them something new is obviously not interested in making money, they are there for other reasons.

And simply using common sense, Anaconda's messages are far more detailed and specific. Not everyone is going to starve next week? Who cares, it's semantics. I got the message he was saying. To ignore knowledge is truly idiotic.

 

[toc]

Presuming the article and its figures are correct.........is there any way the US Treasury can go to the derivatives transactors and order them i.e. reverse their transactions.

I do not know much about D's but it would be like saying what you owe to other is reduced to zero and what others owe you is also reduced to zero.

Meaning the D type transaction never happened and balance sheets come back to making some sense.

This or such moves are indeed totally counter free markets and might even threat the existence of wall street, but limited whip might be needed to..........insure that world financial mechanism does not fall into total dormancy and destruction............. leaving us to rebuild the society via farming and jungle village type economies.

CNN reports that team to top economist predict via an advanced model that an economic turnaround to be by October....hope so!

They also predict that there is only 1 in 6 chance that US and World will drop into a depression.

Keep the spending normal but also save for the rainy day by investing into conservative items like savings accounts and even gold.

 

[Anaconda]

Quote from Renegen:

Anaconda is not a troll, he taught me something I didn't know today.

Anyone who would put someone on ignore because they taught them something new is obviously not interested in making money, they are there for other reasons.

And simply using common sense, Anaconda's messages are far more detailed and specific. Not everyone is going to starve next week? Who cares, it's semantics. I got the message he was saying. To ignore knowledge is truly idiotic.

Thank you,

Just want to point something else out.

As intradaybill so eloquently put it:

"Assets = loans

Liabilities = deposits"

Isn't interesting how our money & savings aka deposits magically turn into loans aka assets for the bank. Loans which go right back to us. Even Houdini couldn't pull off a trick like that.

I guess that is what Woodrow Wilson was talking about in this quote:

"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men."

 

[tradestrong]

Quote from Casey30:

"A simple two-ply square of toilet paper sells for $417"


The above statement made me write this whole story off. The author lacks common sense. Perhaps the author lacks sense overall. If 1 sheet of toilet paper cost that many bills, wouldn't you just use the 417 bills in place of 1 piece of toilet paper?

I'm trying to figure that one out too. Is the author trying to imply that all world currencies are going to depreciate against each other simultaneously somehow creating this hyperinflation, or that just the dollar is going to depreciate against other currencies to cause hyperinflation. What piece of shit currency is going to all of a sudden appreciate against the dollar thousands of times causing this massive inflation in America. And if all of a sudden, the dollar became worth thousands of times less than every other world currency in one of the most developed countries in the world, why would every corporation in the world not all of a sudden want to set up shop here to take advantage of the super cheap labor all of a sudden thus driving the demand for the dollar right back up?

Every time I see one of these "doomsday" articles about the dollar, they seem to conveniently ignore international affects and correlations to the dollar. Why is that?