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SuperGenius Jimmy Rogers on the NEW bailout.
- Thread starter W4rl0ck
- Start date
quote from scriabinop23:
That is the strange point.. Where are the winners in the CDS world? It seems like we only hear of the losers. And if it was hedge funds, it sure doesn't show in their performance. Same goes with pension funds, etc.
Besides the hedge winners, there must levered winners as well. The whole thing makes you wonder...
The answer is there will be a lot more money supply in the end...
Unless it was the fed and treasury who were the other side of the bets. Now they are just giving it back. Redo.
(heheh ya right)
The link below has some interesting things to say about how that might work.
http://www.businessspectator.com.au...-of-hope-or-terror-LHRJP?OpenDocument&src=sphAs the world slips into recession, it is also on the brink of a synthetic CDO cataclysm that could actually save the global banking system.
It is a truly great irony that the worldâs banks could end up being saved not by governments, but by the synthetic CDO time bomb that they set ticking with their own questionable practices during the credit boom.
Quote from scriabinop23:
That is the strange point.. Where are the winners in the CDS world? It seems like we only hear of the losers. And if it was hedge funds, it sure doesn't show in their performance. Same goes with pension funds, etc.
Besides the hedge winners, there must levered winners as well. The whole thing makes you wonder...
The answer is there will be a lot more money supply in the end...
Unless it was the fed and treasury who were the other side of the bets. Now they are just giving it back. Redo.
(heheh ya right)
I agree.
The money must be going somewhere.
All the Banks are paying out big dollars - to who? Themselves?
Here's another way to think of it.
Say AIG holds a shitload of CDS shorts that came due.
AIG doesn't pay it. The FED does.
Now the Counterparties get rich off debt they don't own via FED money payouts channeled through AIG.
Take another example. Citi. They sold a bunch of CDS. They don't have the cash to pay, so they tap the FED, get a loan, payout the CDS, and the Counterparties get rich from Public money channeled through CITI from the FED.
Or UBS. Fannie and Freddie. Merrill. Whoever.
They all had big short positions in CDS that were essentially covered by the FED.
Its like a poker game where a rich dude finances all the players.
Every player blows out, gets recapitalized by the Rich Guys money, then collects a nice pot from the next guy who blows out (with the Rich guys money).
In the end, the total money handed out by the Rich dude is just recirculated amongst the Players in the Game. Some up more, some down more. But most everyone up, because no one was allowed to fail.
And the $$$ to prevent failure is profit for the next guy who held the other side.
If thats the case, why hasn't it shown up in their accounting?
Perhaps Level 3 and 4 assets are written down to offset and conceal big gains realized through CDS wins? So when the market finally does recover and CDO's catch a decent bid, these banks are gonna post XXX Billion dollar profit quarters, and the Media and Politicians looking like Heros??
Every bailout injection is just more free cash on the balance sheet to throw into the "Pot", that is ultimately being spread around between the players. Its not destroyed. It can't be. Its real money. The defaulted tranches are worth only maybe 1 trillion.
So where has the other 7 or 8 TRILLION Gone??!?
Quote from achilles28:
Give me a fucking break.
Rogers was right about Commodities, the Dollar, Investment Banks, Banks etc.
If he had mastered the lost art of trailing stops, he'd have made a shitload!
Calling fundamentals 3 to 10 years in advance takes an exceptional mind and mastery of economics.
Dude has hundreds of millions, if not Billions.
Proof is in the Pudding.
As for his personal life, how the fuck do you pretend to know anything about that?!
Now he's a one-time loser shilling his non-existent Beeland fund to "Con" unwitting investors?!
Yea, Right! LOL
You needed a mastery in economics to see that gold was cheap in 2000?