PALOOKAVILLE FINANCIAL
capitulation day
+128...
...the story so far...
...it would appear that we are in the sh*t...
...certain assets against which credit was pledged...
...in fact, never existed at all...
THEY AINT NO ASSETS
market ticker : ..."The "dirty secret" behind a lot of these "assets" is that they are literal zeros. A lot of the debt issued in the last few years was in fact fully synthetic - that is, it was not backed by an actual mortgage or other actual debt instrument - it was created out of swaps and other derivatives that "acted like" the real thing. The problem with this sort of model is that it relies on the ability of the counterparty who wrote the swap to pay - if they can't pay then what you have is a worthless piece of paper since you can't even foreclose on the underlying property and seize the collateral! With no meaningful margin supervision a lot of these so-called "counterparties" in fact can't pay. This means these "synthetic" instruments are in fact worth nothing."
petey :
...it was all a trick...
...thats why the banks is bust...
THEY AINT NO MONEY
petey :
...thats why the cost of the bailouts keeps rising...
...it's not that the assets are toxic...
...they just aint no assets...
HYPER-HYPE
...it would appear that inflation has left the building...
...we just caint afford it anymore...
...the money to pay for it has evaporated into the thin air it came from...
THE CANDYFLOSS ZOMBIE
...try as they might...
...they just caint get the sucker breathing again...
...voodoo economics has worked all too well...
...an now the zombie economy limps along...
...UNdead...
...pallid...
...not growing..
...but...
...shrinking...
...deleveraging, deflating...
...decomposing...
capitulation day
+128...
...the story so far...
...it would appear that we are in the sh*t...
...certain assets against which credit was pledged...
...in fact, never existed at all...
THEY AINT NO ASSETS
market ticker : ..."The "dirty secret" behind a lot of these "assets" is that they are literal zeros. A lot of the debt issued in the last few years was in fact fully synthetic - that is, it was not backed by an actual mortgage or other actual debt instrument - it was created out of swaps and other derivatives that "acted like" the real thing. The problem with this sort of model is that it relies on the ability of the counterparty who wrote the swap to pay - if they can't pay then what you have is a worthless piece of paper since you can't even foreclose on the underlying property and seize the collateral! With no meaningful margin supervision a lot of these so-called "counterparties" in fact can't pay. This means these "synthetic" instruments are in fact worth nothing."
petey :
...it was all a trick...
...thats why the banks is bust...
THEY AINT NO MONEY
mish : ..."The world Economic Forum is reporting Global crisis 'has destroyed 40pc of world wealth'
The past five quarters have seen 40pc of the world's wealth destroyed and business leaders expect the global economic crisis can only get worse.
Steve Schwarzman, chairman of private equity giant Blackstone, said an "almost incomprehensible" amount of cash had evaporated since the financial crisis took hold.
"Business will be very different," he added.
His comments came on a day of the World Economic Forum characterised by the gloom of its participants and warnings that the crisis will endure for some time. News Corp chief executive Rupert Murdoch kicked off the meetings by warning that the atmosphere was worsening – despite global economic confidence plumbing the lowest depths on record.
"The crisis is getting worse," he said. "It's going to take drastic action to turn it around, if it can be turned around, quickly. I believe it will take a long time."
petey :
...thats why the cost of the bailouts keeps rising...
...it's not that the assets are toxic...
...they just aint no assets...
HYPER-HYPE
...it would appear that inflation has left the building...
...we just caint afford it anymore...
...the money to pay for it has evaporated into the thin air it came from...
THE CANDYFLOSS ZOMBIE
...try as they might...
...they just caint get the sucker breathing again...
...voodoo economics has worked all too well...
...an now the zombie economy limps along...
...UNdead...
...pallid...
...not growing..
...but...
...shrinking...
...deleveraging, deflating...
...decomposing...
No comments:
Post a Comment