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Strategies & Market Trends : Heinz Blasnik- Views You Can Use

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From: Eva	1/27/2011 10:51:57 AM
	3 Recommendations of 4904

update -- trotsky, 10:14:21 01/27/11 Thu The Ponzi Scheme Lives On The euro area's EFSF is akin to a CDO - a better rated layer of debt is added to an existing 'bad debt' layer, magically transforming bad debt into "good debt" by virtue of additional guarantees. The biggest buyers of what one might now deem the 'senior tranches of the euro area CDO' in turn are central banks, themselves no strangers to business activities that would tend to land private citizens in the slammer (try to print your own money and see what happens). In this manner the Ponzi scheme of towering national debts that can never be paid back and currencies that are 'backed' by the very same unpayable debt is continued. Meanwhile, the FASB gives in to the demands of bankers (what else?) and makes 'mark-to-fantasy' rules permanent, thus ensuring that the bonuses will keep flowing on numerous listing 'too big to fail' ships. The Federal Reserve seems to think it unseemly that it alone will be left to report big losses, so it simply changes its accounting rules as well to make said prospective losses disappear. It's like some black-humored financial comedy - everybody switches to Enron accounting and presto! CONfidence is restored! Next up to bat, Mervyn King, who spends an entire speech explaining that rising prices have absolutely nothing to do with loose monetary policy and that hence, the BoE is herewith exonerated for any rises in the misery index. His colleagues at the ECB agree: a jump in German import prices to a 29 year high is surely 'temporary' and thus monetary pumping should continue. In Shanghai, the banks suddenly face an 'end of boom alert' moment, as interbank funding rates spike dramatically. This disturbance in the force could be the harbinger of the imminent demise of the echo-boom that China's planners have bought with oodles of bad loans. acting-man.com

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