Posts Tagged ‘crisis’

700-850 BILLION DOLLAR BULLSHIT DEFINED!! IT IS A SHELL GAME!!

Sunday, October 12th, 2008

Credit Default Swaps….a kind of off the books insurance they all can write on each other and then swap as necessary to fool the customer into believing there is any money (ball) in (under) any account (shell)…..quite a confidence game…..I have noticed a lack of accounting of the 700-850 billion dollars on the US Treasury Account Balance Sheet…..maybe Paulson is playing the shell game with our money now!! It would appear so!!

CHECK THIS OUT!!
The Bailout Plan Passed 3Oct08 and was signed by Bush 43 minutes later…SO IT WAS LAW BEFORE CLOSE OF BUSINESS ON FRIDAY!!
ONE DAYS INTEREST ON 700 BILLION DOLLARS AT 4% PER YEAR (Which is a rather poor investment performance number so very conservative) IS $76,712,328.78 IN ONE FREAKIN DAY!! SO WHY IS THIS NOT LOGGED ONTO THE US TREASURY STATEMENT OF 3OCT08?? THAT MAKES FRIDAY, SATURDAY, AND SUNDAY A TOTAL LOSS!! THAT IS 230 MILLION DOLLARS IN INTEREST ON OUR HARD EARNED MONEY UNACCOUNTED FOR…AND THAT IS ASSUMING THEY INTEND TO EVEN PUT THE $700 BILLION ON THE BOOKS AT ALL EVER!!
ALSO NOTICE THE SHARP INCREASE IN THE SHORT POSITION FROM THE 29AUG STATEMENT TO THIS 3OCT STATEMENT!! A CHANGE FROM 62 BILLION TO 215 BILLION IN SHORT POSITION!! A 153 BILLION DOLLAR INCREASE…..THAT IS A CHANGE OF TWICE THE ENTIRE US RESERVE ASSETS AS ANNOTATED AT THE TOP OF THE SPREAD SHEET AT APPROXIMATELY $72 BILLION!!
Spread Sheets Highlighted Here On Page Three!

US Treasury Reserve Position 2Sep08 Thru 3Oct08Upload a Document to Scribd

http://www.ustreas.gov/press/international-reserve-position.html
Traders’ worst fears realised at Lehmans auction

http://www.independent.co.uk/news/business/news/traders-worst-fears-realised-at-lehmans-auction-957953.html

Hundreds of billions set to change hands as credit default swaps are reconciled

By Stephen Foley in New York
Saturday, 11 October 2008

Derivatives traders were yesterday nervously picking their way through the wreckage of the Lehman Brothers bankruptcy in what was the biggest test to date of the unregulated $60 trillion (£35.4 trillion) credit default swaps market.

Investors who had placed bets on Lehman’s creditworthiness held an auction aimed at clarifying who owes what to whom after the investment bank went bust four weeks ago, and analysts believe that several hundreds of billions of dollars will change hands.

Credit default swaps are a kind of insurance, which investors used to protect themselves in the event that Lehman defaulted on its bonds. Unlike traditional insurance, however, any financial firm could write a credit default swap contract so banks, insurance companies, hedge funds and traditional fund managers are among those now being required to make investors whole.

The auction set a price for Lehman bonds of 8.625 cents on the dollar. Financial firms that sold credit default swaps, therefore, owe 91.375 cents on the dollar – more than Wall Street had been factoring in. That figure increased nerves about whether everyone in the chain will actually be able to pay the amount that they owe, something that will become clear over the coming days. Participants said the auction went smoothly and efficiently.

The insurance giant AIG was one of the biggest sellers of Lehman Brothers credit default swaps, and it faces big losses as a result. It had to be bailed out by the US government three days after the Lehman bankruptcy filing, and has so far been extended $123bn in loans from the US taxpayer. What investors and regulators fear most is a failure to pay by one link in the chain could cause a cascade of losses through the system.

Analysts say the amount of money that has to change hands could be more than $200bn. Some estimates put the value of outstanding credit default swaps on Lehman Brothers debt at $400bn, although some of these trades have already been netted out because some investors both sold and bought CDS contracts. Exact figures are not available because a CDS is a private contract and is not traded on an exchange, but the payout will certainly be the biggest in the 10-year history of the market.

CDS issuance has exploded in recent years as investors have used the instruments not just to insure bonds that they hold, but also to bet on the creditworthiness of companies. The growth of the market has been so fast that Wall Street has not had time to invent a central trading mechanism.

The New York branch of the Federal Reserve, the US central bank, summoned market participants to a meeting yesterday to discuss creating just such a mechanism. IntercontinentalExchange, the electronic trading platform that is now one of the most popular places to buy and sell oil, said yesterday it had set up a joint venture to create a CDS settlement system. Its announcement came three days after CME Group, which runs the Chicago Mercantile Exchange for derivatives trading, said it was joining forces with hedge fund Citadel to set up a similar system.

Deutsche Borse and NYSE Euronext have also expressed interest, suggesting there could be ferocious competition between exchanges if CDS trading is forced into the regulated arena.

Bernanke Is Scum!! He Withdrew $125 Billion! He Created Shortage!

Tuesday, September 30th, 2008

THIS IS PROOF POSITIVE BERNANKE OF THE FEDERAL RESERVE CORPORATION IS ACTING ON BEHALF OF CORPORATE ROBBER BARRON INTERESTS!! THEY HAVE CAUSED THIS MESS DIRECTLY!! THAT SON OF A BITCH!!
THESE SCUM CALL$125 BILLION “SLOSH”!! THAT IS THE EPITOME OF ARROGANCE THAT DESERVES JAIL TIME NOT TO EXCEED LIFE!! WELL THAT PART IS DEBATABLE!!

Market Ticker has provided charts from the Federal Reserve that prove that Bernanke has withdrawn $125 billion from the banking system in the last 4 days alone to create a crisis situation that will incite credit market mayhem and increase the liklihood of passing the bill. This is coercion of the worst kind. http://market-ticker.denninger.net/archives/2008/09/24.html

The Fed has claimed that this is a “liquidity crisis.”

Really Ben? Then perhaps you can explain this?

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Note that this is an intentional drain of “slosh”, or liquidity, from the banking system. $125 billion in the last four days drained?

You wouldn’t be trying to intentionally cause a bank failure or two to bolster your call for the $700 billion “bailout” plan, or perhaps intentionally lock the short-term credit markets, would you Ben?

If the market has a liquidity crisis, why would you be intentionally draining reserves from the banking system? Don’t you think you ought to explain that to Congress?

U.S. Govt. Criminals Soak Taxpayers to Bail Out Elitist Buddies!

Saturday, September 20th, 2008

U.S. Govt. Soaks Taxpayers to Bail Out Wealthy Elite; $1 Trillion Rescue Fund Lands at Taxpayers’ Feet
Published on 20-09-2008
http://www.blacklistednews.com/news-1590-0-13-13–.html
I Like To Name Names!!…..Hey Hey The Gangs all here (Well some of them anyway)!!
http://www. judicial-inc. biz/89bollyn. htm
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Source: Natural News

In its complete abandonment of free market principles, the U.S. government has banned all short selling of nearly 800 financial companies and set up a $1 trillion off-the-books “rescue” fund in an attempt to sweep financial losses under the rug while sending the bill to taxpayers. If you or I used the same accounting practices in our own businesses, we’d be arrested for serious white collar crimes, but the U.S. government respects no law and is now fully engaged in Enron-like accounting schemes to create the appearance of financial safety while it drives our nation deeper into unacknowledged financial disaster.

One can only step back and laugh at the hilarity of it all. By decree, no one can short sell financial institutions now. It’s as if the King declared all markets shall always go UP, and anyone caught lowering stock prices shall be arrested for crimes against the State. President Bush might as well declare gravity to be outlawed, or the laws of physics to be suspended.

You can’t declare the stock market to suddenly be strong and expect it to actually be so. Sure, you can fake it for a while, but the underlying causes of these financial disasters (runaway spending) are NEVER mentioned, especially not by the President.

“Anyone found engaging in illegal financial transactions will be caught and persecuted,” said President Bush (yes, he actually said “persecuted”). Everyone except the U.S. government, of course, which is so blatantly engaged in illegal financial transactions that it now qualifies as a money laundering criminal itself.

Chemotherapy for the economy
The U.S. government treats its financial problems in the same way doctors treat patients with health problems: Mask the symptoms and ignore the cause.

This $1 trillion rescue plan is like chemotherapy for the U.S. economy. Sure, it might visibly shrink some tumors, but the patient will soon find himself vomiting, losing hair and dropping body weight to dangerous levels. The real problem with the U.S. financial system is not that it has too many losses, it’s that the entire money supply is run by crooks at the Fed who have stolen control of the money supply from the People. Meanwhile, the U.S. government is engaged in runaway debt spending: $9 trillion so far, and now, with this $1 trillion rescue plan, the U.S. government is about to hit an incredible number: $10 trillion in debt.

Does national debt really matter? To hear the politicians say it, debt has no consequence. You can tell yourself the same lie, too, as you take out cash advances from one credit card to meet the minimum payment on another card. As your debt compounds and multiplies, you can lie to yourself all you want about good times and strong economies, but in the end, the bill still comes due and your house is bankrupt.

Or maybe we can all do what the U.S. government is doing: Create an illegal money laundering fund where we can redirect all our debt to offshore accounts while we party on, spending like there’s no consequence.

Let’s all be clear about one thing: The U.S. government is now fully steeped in central planning of its financial system. In other words: The U.S. is now a Communist country when it comes to finance and stock markets (so much for all that patriotic flag-waving we’ve seen since 9/11, huh?), and it’s going to dictate the movement of the stock market by the decisions of politicians rather than the free flow of capital and risk.

Capitalism is now dead in America. The U.S. government has just told ALL big financial investors, “Hey, you can pocket all the gains you want, and if you ever LOSE money, don’t worry! We’ll let the taxpayers foot the bill!”

I probably don’t need to tell you this is a recipe for outright financial disaster. Sure, it makes the stock market look stronger in the short run. It can cover up the truth for a while, just like painkilling drugs make the symptoms go away by numbing the patient. But it completely ignores the cause of the problem. The U.S. Government has intervened in the markets beyond the point of all reason. It has completely abandoned free market principles and practically guaranteed a much larger, more painful financial correction in the future when reality comes calling.