The Largest Swindle in Global Economic History

Thanks for quoting Mother Jones, what a left wing rag that thing is...

The blame vector is slowly being pointed to Clinton, where it belongs, and before him Carter... does anybody remember the outrage [in the press] about redlining? That means that black neighborhoods were not getting their share of the loans. Regulations were passed under Clinton's watch that pressured lenders to make bad loans... so they did, and I get a real laugh out of Countrywide, the CEO was a good boy, he placed all those bad loans, and packaged them and sold them to idiots and walked off with a Billion [with a B], yes he got a billion all told over a few years...

Anyhow, southamerica is a troll that keeps predicting the demise of the USA.... claims he's really smart too, must be, he's a commie I guess and they are real smart, just ask any of them.....
 
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Fractals R Us: Anyhow, southamerica is a troll that keeps predicting the demise of the USA.... claims he's really smart too, must be, he's a commie


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September 25, 2008


SouthAmerica: I am against these bailouts and the nationalization of the entire financial system in the United States – and that makes me a commie.

Please tell me another joke that one was very funny.

By the way, this thread about the $ 700 billion dollars of the US economy has been moved to chit chat where people post jokes - and probably it is the place that in belongs this $ 700 billion dollars bailout should be treated just as a joke and nothing else.

ET is a Wall Street Forum and this particular thread has been moved with the jokes and I am going to point out that fact in all other forums that I am posting this information.

The $ 700 billion dollar bailout must be a joke and nothing else.

Today George W. Bush the irrelevant told the American people that the sky is falling and by next week the US economy is going to become worse than Zimbabwe. The only problem is that he has no credibility left and idiots would believe on what he says.

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September 25, 2008

SouthAmerica: Since the moderator of the economics forum thinks that my posting is a joke then I decided to share it with thousands of other people on many forums on the web and now this information also can be found at the following websites and some others that I have not listed here.

Since this thread belongs with the jokes then let’s everybody have a big laugh about this $ 700 billion dollar bailout of Wall Street and let’s share this joke with thousands of other people including thousands of Chinese people who read Brazzil magazine on a regular basis.

Today the largest number of people who reads Brazzil magazine are from China about 45 percent of the readers of that magazine and they are going to love this joke since they are the suckers who are going to finance this $ 1 trillion dollar fiasco.

The Chinese are going to laugh so hard about this joke – They must be saying the United States expect us to finance what????????

The Chinese must be in the floor right now because they are laughing so hard – please tell us another joke about Wall Street and the US government…..

This information also can be found at the following websites:


Brazzil Magazine
The Largest Swindle in Global Economic History
http://www.brazzilmag.com/content/view/9947/


PBS – The Charlie Rose Show – interview with Barney Frank
The Largest Swindle in Global Economic History
http://www.charlierose.com/shows/2008/9/23/1/a-discussion-about-the-economy-with-rep-barney-frank


PBS – Washington Week – TV program
The Largest Swindle in Global Economic History
http://discussions.pbs.org/viewtopic.pbs?p=670029#670029


The Huffington Post
The Largest Swindle in Global Economic History
http://www.huffingtonpost.com/bart-motes/mccain-suspends-campaign_b_129063.html


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South America, What part has the pricing mechanism played in the debacles of finance that have occurred since the billionaires bailout.

In your response, i appreciate it if you considered the larger senses in which that pricing mechanism is not well bounded, but is random, and non-statistical, nonliner and strangely attractive to chaotic behavior in the far from equilibrium states that do occur near the time of onset of these occasions. As you see i describe a pricing mechanism that is itself perhaps locally and necessarily bounded but not so sufficiently well bounded at some other undeclared scaling. These boundary conditions are the realm of the julia geometries now so well understood to mark the interface of order and partial but knowable disorder.

It is my suggestion to you a more regular international market of real and imaginary components can be achieved by a general solution of the boundaries of the black scholes pricing mechanism, a process which i would call interfade 'transparency.'

In other words, until the black scholes mechanism is tamed according to the geometry of the M-set solution to the Julia Sets, modern financial progress will continue as haphazard as at present, nevermind the artificialities human greed intoduces. But what might this transparency look like. Well, i do not know, but i suggest a model already exists in analogy from electrical circuitry.
Specifically, i would appreciate you consider Mandelbrot's early work at IBM in the early 1950s which involved current flow thorough contiguous circuitry.


One detail of that work involved ferreting out an electrical surge problem which was causing the early computers to short out. The result of his investigation acknowledged that the electrical current varied according to the known properties of electricity, but that there were non-linear feedback loops aperiodically producing current surges in the system which the engineer were not able to design about using the standard solutions, hence the very expensive breakdowns. As there was no predicting when these surges might occur, a linear model engineering model was limited in utility. The designed system was not properly bounded. However, armed with the idea of how surges operated, IBM's engineers were able to design redundancies in their system to detect and bypass surges as they were likely to occur, and IBM computer design advanced.

If one were to consider black sholes the standard design model, and take the value of the underlying asset as its current, one might similarly bound black scholes to behave within the courses of chaotic behavior at far from equilibrium circumstances.

Thank you.

a reader from Public Broadcast System who knows the fine mind chit chats to share and to discover. i look to my discoveries from you.
 
Quote from Fractals 'R Us:

Thanks for quoting Mother Jones, what a left wing rag that thing is...

The blame vector is slowly being pointed to Clinton, where it belongs, and before him Carter... does anybody remember the outrage [in the press] about redlining? That means that black neighborhoods were not getting their share of the loans. Regulations were passed under Clinton's watch that pressured lenders to make bad loans... so they did, and I get a real laugh out of Countrywide, the CEO was a good boy, he placed all those bad loans, and packaged them and sold them to idiots and walked off with a Billion [with a B], yes he got a billion all told over a few years...

Anyhow, southamerica is a troll that keeps predicting the demise of the USA.... claims he's really smart too, must be, he's a commie I guess and they are real smart, just ask any of them.....
More...


I am not left wing or right wing supporter. But the Gramm bill of deregulation is no doubt to me is a big contributor to what is happening now.
 
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September 25, 2008

SouthAmerica: Reply to Gary M

Forget your theory and other quick fixes – they are not going to fix anything with this $ trillion dollar bailout.

Here is the real answer for you in a nutshell: “A Russian economist, Nikolai Kondratieff, published a study in 1926 showing that a very long-term economic cycle existed.”

Ben Bernanke can reduce the Fed Funds to Zero and it is not going to fix anything.

The guys in Wall Street should get their bailout money and leverage it at 1 dollar of capital to 100 dollars in borrowed money, maybe 200 dollars in borrowed money.

The bottom has fallen out of the market and the decline is going to continue – real estate will decline at least another 30 or 40 percent – foreclosures is going to skyrocket – the unemployment rate is going to get a lot worse than already is (don’t forget the real unemployment rate in the United States is already over 12 percent if you add all the pieces) – Don’t forget the government insured pension money that the US government authorized about 2 years ago to be gambled in Hedge Funds is also disappearing and going up in smoke – the US dollar will finally meltdown because people around the world is starting to realize that the credit rating of the US government is becoming just junk – since the US government will not be able to meet its future obligations and even might need a bailout from the IMF.

Very soon people are going to start comparing the US dollar with the Zimbabwean currency.

Please don’t be surprised if in the coming future the US dollar start being quoted in the international market by the kilos.

“X” kilos of US$ 100 dollars will be equal to 1 unit of a foreign currency.

The US government also should consider changing the name of its currency from US dollar to “US Confetti.”


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February 7, 2008

SouthAmerica: I wrote about this subject on various articles in the last few years, but as we approach very quickly the beginning of the New Great Depression it is worth to review some relevant information.

This it is just a reminder to give people a chance to prepare for the coming hard times.

Over seventy-five years ago, we had a market collapse in Wall Street. The market started collapsing on Black Thursday, October 24, and again on Black Tuesday, October 29, 1929. The "Great Depression" followed.

Based on past history, we are away overdue for another worldwide depression. A George W. Bush election on next Tuesday will guarantee the start of the new worldwide depression. The Republicans are very good at starting a "Great Depression." You can count on them. Following I am quoting part of an article that I wrote at the end of 2002, In that article I mentioned that the USA had to start a war (any war) in an attempt to delay the start of the coming "New Great Depression."


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I am quoting from one of my articles (the original article was 9 pages long) published in January 2003: "Getting Ready for War"

…Few years ago many economists claimed that they had tamed the economic cycle, and that deep recessions and depressions were things of the past. When I read articles about that, I thought they were completely wrong.

The truth is the world is overdue for a new economic depression. Historically we had a depression in the world once every 55 to 60 years. The last world depression was over 60 years ago. A Russian economist, Nikolai Kondratieff, published a study in 1926 showing that a very long-term economic cycle existed. His major premise was that capitalist economies had a pattern of long wave cycles of boom and bust. The bust cycle repeated itself approximately every 60 years. If you had read Kondratieff's paper in 1926, you would have known that an economic depression was around the corner.

Kondratieff identified four distinct phases the economy goes through during each cycle: 1) Inflationary growth, 2) Stagflation, 3) Deflationary growth, and finally 4) Depression-falling prices, falling stock prices, falling profits, debt collapse.

As the stock market is collapsing, a number of corporate scandals emerge such as Enron, WorldCom, Global Crossing, Adelphia Communications, Arthur Anderson and many others. As the debt load reaches new highs in the economy, the result is a record-breaking number of personal and corporate bankruptcies, as is the case in the US today.

…In the past, a major war was the way out of an economic depression. Maybe that solution will be used by the US one more time to restart its economy - a major war contributes to ending the depression phase, and leads the economy to the first phase of the cycle once again. The big war has to be started somewhere even in Iraq.


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I wrote the following on October 29, 2004:

… Many economists still are debating today about the causes of the "Great Depression."

Quoting from article published on the "Financial Times of London" Oct 22, 2004:

"…Most scholarship has focused on the broad causes, with less study of what was the most important feature to anyone living through the crash: the juddering of prices up and down, sheer confusion and risk.

…Mainstream economists are not much closer now to understanding volatility in markets than they were 75 years ago."

… Usually Americans make programs for television to commemorate any minor event that people can imagine.

But today is the 75 birthday of the stock market crash of 1929, and there is very little mention of that event in any program on American television.

The American media are aware of the precarious situation of the entire American economic system, but nobody knows what will trigger the collapse of the house of cards.

Just to be in the safe side the American media is not saying much about the stock market crash of 1929.

… One of the triggers of the stock market collapse of 1929 was margin call on stock purchased on credit. (In 1929 people could buy a lot of stock on credit with a small amount of cash.)

Margin calls it was a major problem in the stock market crash of 1929.

Today, the equivalent to margin calls in 1929 is "Derivatives." The Derivatives market today, it is estimated to be over 100 trillion US dollars.

This time around, "Derivatives" will be the trigger to a massive stock market collapse.

Any way, today we are away overdue for a new stock market crash, and worldwide depression.

Here it is a current example of things to come; The Big Meltdown!!!!!!!!!!


… Here is why the coming depression is a sure bet. I like to quote some information from one of my published book as follows:

(Quoting from pg. 21)

"Unrealistic Expectations.

There is much evidence that human expectations tend to be linear. Most of the time, most people expect current conditions to continue for the indefinite future. It is almost an unnatural act for a man to leave home with an umbrella on a sunny day. Call it optimism, faith in the future, or just reluctance to see the party end, there is a presumption that the environment is stable. This is why cities are built on floodplains and fault lines. A similar presumption makes the gambler double his bet or the farmer plant additional crops on reclaimed land the year after a good harvest.

Whenever prosperity exists, it is natural for people to expect prosperity to continue. For this reason, much of the history of human society is a record of astonishment. Time and again, people have marginalized their affairs, rendering themselves increasingly crisis-prone.

They have gone into debt, extending claims on resources to an extreme that could be supported only if current conditions were sustained uninterrupted into the future. Time and again these hopes have been disappointed. Whenever prosperity has seemed permanent, some apparently minute change could produce astonishingly large nonlinear shifts in the organization of human society. The failure to recognize or anticipate these nonlinear transformations has been a common characteristic of almost all societies.

…When the dynamic and nonlinear world adjusts itself to the linear thinking used daily by governments and other institutions such as corporations, banks, insurance companies, the church, and so on, the result can be sometimes catastrophic and can translate into unemployment, inflation, monetary devaluations, market crashes, world wars, civil wars, depressions, and even chaos.

…Change is a fact of life, yet many people don't want to think about it because they feel threatened by it. So when change comes, it takes them by surprise. By then they can only react to it, and unless they're lucky, they suffer losses."


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The United States had a Republican president, and the Republicans had a majority in the House of Representatives, and in the Senate during the years 2001 to 2006.

Here we go again history repeats itself.

Just a reminder!!!!!!!!!!

The United States had a Republican president, and the Republicans had a majority in the House of Representatives, and in the Senate during the years 1921 to 1930. We all know the result of the Republican policies during that period: "The Depression of the 1930's."

I had posted this information on the following thread:
Over 75 years ago Wall Street Crashed; but today the New Crash is already
http://www.elitetrader.com/vb/showthread.php?s=&threadid=117003

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By way of appreciation to SouthAmerica in Reply to Gary M:

SouthAmerica,

What was I thinking!

(Your standard is known before it is given, and follows itself without query)

Thank you, sweetest sensi.

good luck
 
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September 29, 2008

SouthAmerica: Right now the House is voting on legislation that it will be considered the largest swindle in financial history.

These Congressmen must be “Brain Dead” to vote in favor of the passage of such bailout for Wall Street that it does not mean a thing to main-street.

I never imagined that Americans were so stupid – only “brain Dead” people would approve such a bailout.

We have a $ 62 trillion dollar derivatives market that is spinning completely out of control in world markets – the derivatives market is unregulated, and have been operating in automatic-pilot during all these years of explosive growth on that market – a market that grew from less than $ 1 trillion dollars in January 2001 to the current size of $ 62 trillion dollars.

Basically, the bill that they are voting today on the House will give the authority to the Treasury Secretary to buy $ 700 billion dollars of these toxic financial weapons of mass destruction.

The Hedge Fund industry in the United States that is ripe and ready to implode into the black-hole is the next major financial crisis that is ready to explode and these guys have a ton of derivatives toxic financial weapons of mass destruction.

The $ 700 billion dollars should be considered only the down payment to the US government intervention in an effort to stop the complete meltdown of the derivatives market.

Americans are silly to think that a dime of these $ 700 billion dollars is supposed to help with the problem of melting real estate market in the US.

These $ 700 billion dollars are going to disappear into a black-hole of derivatives toxic financial weapons of mass destruction.

After people start understanding what is going on and after a few more bailouts the world is going to realize that the US dollar has been tuned into Confetti and finally we should have the meltdown of the US dollar in world markets.

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South America wrote: Forget your theories


Gary M writes: The causes are a flawed pricing mechanism where in individual components are accounted, but aggregate feedback loops are not. That cause is coupled to an incapacity to identify and eliminate troubled accounts. Unable to adjust to far from equilibrium conditions the entire system tends to chaotic behavior, and panic tends to ensue.

It is, more simplemindedly, the rollover effect of the short comings of schols black far from equilibrium, and regulatory abstinence.

Throwing money at the problem does not solve the problem, though it may bind an unhealthy condition withn an unsanitary bandage.
 
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