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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: energyplay who wrote (20372)7/23/2007 10:27:05 PM
From: TobagoJack  Read Replies (1) | Respond to of 217573
 
THEY will have to downgrade the supposedly AAA tranche of CDOs because of the misunderstanding regarding the nature of the tranches, and when so ... ouch.

When so, liquidity will dry up, eye balls will crack, terms tighten, and eye balls will pop out, then all will try to reach for the monetary parachute all at the same time ...

is one possibility.

There are many other possibilities, and the more probable will not be pleasant when actuate.

For everything in the empire, I expect 50% USD devaluation and 50% discount of nominal value when measured in USD terms, compounding to a 75% repricing of at least 50% of everything that is out there, in the empire, because soon last call will be announced, and tabs will have to be paid, by way of monetization of debt, vaporization of credit, invigorated taxation, and by financial terror act via derivatives triggered by sharply increased volatility of everything under the sun and the moon.

I call it the 50^3 (50Hat3) solution for the simultaneous equations known as the Zimbabwe approach and the Argentina exit.