Friday 10 October 2008

THE RED SPECKALED SCREEN

yo!...elementary...innit..!

PALOOKAVILLE FINANCIAL stardate capitulation day+22

...sherlock holmes is puffin on is pipe an watson oilin a old shot gun...inna drawrin room...

watson : WTF..?...birdbrain!

holmes : elementary my dear watson...there was no money...it was all an illusion...fueled by credit conjured outa nowhere by a leverage machine anna bunch a cunnin bastards...

watson : yo mean a bankers dude?

holmes : no jus a bankers man...politix anna developers anna media an alla suckers wot believed inna dream...

watson : i say!...wots ta be done?.. holmes old boy?

holmes : elementary my dear watson!...we gotta make a banks own up an
TELL THE TRUTH...

market ticker : "They(the credit markets) remain frozen because the root cause of the problem is that banks and other financial firms have been lying for more than a year, each quarter claiming to have "kitchen sinked" their losses only to report more the next quarter, and in some cases have gone on national TV to proclaim they're "well-capitalized" only days or weeks before they collapse!

The first question anyone asks when someone wishes to borrow money is whether or not they will get paid back. If the lender does not believe they will be able to be paid back then that loan will not be made, no matter how much money someone has available to them.

It really is that simple folks and yet this fundamental principle has been willfully and intentionally ignored for more than a year.


THE UNDERGASM

beulah : yo! painty shugga...why is alla em screens red?

painty : honey...thats cos a whole wurl is shittin itsen ovva a complete seizure o a financial system...

beulah : yeh..but it not gon fect us nah is it?

sadsakkapaintysh*t : nah...yo goo back a sleep honey it all be ovva by a time yo wakes up...innit!

zooneh : yo! dude...i don think it be ovva fo a while man...

saddy : i knows it man...but i aint gotta heart fo ta tella a troof...

so...nah we see wot come o buckin a market...instead o takin a likkle hit o recession
nah anna gen...we create a permanent boom onna nevva nevva an massage a markets to a point o undergasm...a whole wash day...shot ta hell...

...a illusion lost...anna crisis convulsin a suckers...a f**kin whiplash o tension explodes...
an causes iss sunami o debt...ta puke up all ovva a table cloth...

TRUST = CONFIDENCE...LOSS OF TRUST = DISASTER...

barry : "...The thing roiling markets today is not the lack of confidence; It is capital, or more accurately, the lack thereof. Thanks to a series of very poor trades—excessively leveraged and absurdly risky to boot—banks are now dramatically undercapitalized.

As we have seen in just about every historical financial crisis, the shortage of capital is the underlying cause of monetary mayhem. Too much debt, too little equity, makes any financial system cease to function." the big picture

nouriel : ..."The crisis was caused by the largest leveraged asset bubble and credit bubble in the history of humanity where excessive leveraging and bubbles were not limited to housing in the US but also to housing in many other countries and excessive borrowing by financial institutions and some segments of the corporate sector and of the public sector in many and different economies: an housing bubble, a mortgage bubble, an equity bubble, a bond bubble, a credit bubble, a commodity bubble, a private equity bubble, a hedge funds bubble are all now bursting at once in the biggest real sector and financial sector deleveraging since the Great Depression...." over at mish's












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