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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: shades who wrote (50869)	1/23/2006 12:45:51 AM
From: kris b	Read Replies (1) \| Respond to of 110194

Succo on Suckers: Very nice post. I don't know where you get the idea that I am gold bug. As a matter I am not, and I lost a lot of money proving it, by shorting gold miners in 1993-95. I learnt that gold is traded on emotions nothing else. I could care less about gold. My question is, what is going back the paper when confidence evaporates. I don't know. We are just debating theoretical scenarios at this point. "the richies bought up assets at FIRESALE prices" I agree that when the next crisis hits there will be a massive transfer of wealth from the old guard to the new one. I just want to make sure that I am aligned with the latter. Maybe 1929-1934 was engineered so that the young lions could kill the old ones.

To: shades who wrote (50869)	1/23/2006 10:30:15 AM
From: John Vosilla	Read Replies (2) \| Respond to of 110194

Remember, the US is not the only country with a housing bubble, most of the G-8 countries also have housing bubbles. All of these bad debts just boomerang back at you through the equities and derivatives markets. There is just no way to avoid it. There comes a point where too much money is at risk. At that point, due to the mechanics of the fractional reserve system, there is no way to save the banking system. If the banking system goes the currency goes. "The Big Question How many bankruptcies and foreclosures on a world wide scale will it take to endanger the derivatives market, causing an international banking crisis of historic magnitude. With 90% of all derivatives exposure located in the eight largest banks and 99% of all exposure through the 25 biggest banks on the planet, the question becomes, did we really move the risk onto the counter party, or just fool ourselves into thinking we did. At this time there is 45 trillion to 55 trillion dollars worth of derivatives exposure. With a major banking crisis forming due to bankruptcies and foreclosures, is their really any way to escape the damage in a heavily leveraged monetary system?" Just wondering what the exposure was in 1990 to overvalued RE and derivatives worldwide compared to today? Watching Citigroup, Bank America and friends. The end game must show up in the charts. Grande and the "Wiz" say so...