Derivatives: Darth Vader's Revenge Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Derivatives: Darth Vader's Revenge

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Hawkmoon who wrote (1704)	9/18/2010 1:45:31 AM
From: axial	Read Replies (1) of 2794

Re: "Maybe there's hope after all..." Maybe. I don't think the degree of mistrust attached to the UK/US financial axis and practices is understood. There just aren't any references to the reputational damage suffered except by bloggers. Mainstream media just don't - and won't - tell the story. For instance, methodical work to unseat the USD as the world's reserve currency is quietly continuing, one step at a time. Probably it's 5 years plus to realization: everybody wants a smooth transition. The Chinese have shown no reluctance to confront Wall Street and the United States: "This did not get enough press, but in early November, Chinese banks (top tier banks like Bank of China and Industrial and Commercial Bank of China) refused to fork over billions in collateral on dollar/yen FX trades which were out of the money after the yen’s October appreciation. The headlines should have read (but didn’t): “Chinese Banks say: STUFF IT.” The Chinese banks won a game of drag race “chicken” with foreign banks. Most credit support annex agreements would say that closing out these trades would be an event of default, and then the cross default on all the trades would kick in with the same counterparty. But the credit of the Chinese banks was better than many of their counterparties, and they renegotiated contracts with the Chinese banks." tavakolistructuredfinance.com The fatal combination of incentivized risk-taking, ideologically-driven deregulation, regulatory capture and now, inadequate financial reform has not escaped foreign observers. Economic power has been the keystone of US dominance. Despite the grievous harm done, that power could have been retained had the US recognized the need to become known again as a "fair dealer": not only to others, but to its own. Sadly, that was beyond the perception of interests dictating the direction of US politics and legislation. In other places, this has been seen and understood; in time the consequences will be manifest. Jim

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next