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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Secret_Agent_Man who wrote (6047)	4/10/2008 3:11:33 PM
From: CynicalTruth	Respond to of 71463

"As the slow-motion train wreck in our financial system continues to unfold, there are going to be plenty of ill-conceived rescue attempts and dubious turnaround plans, as well as propagandizing, dissembling and scheming by banks, regulators and politicians. This is all happening in an effort to try and buy time or to figure out how the losses can be dumped onto the lap of some patsy (e.g., the taxpayer). The idea seems to be to keep the violins playing while the Big Money Boys slip into the mist and man the lifeboats. " And hence, the "wall street & main street are the same thing" BS being shouted from the roof tops. Don't know bout the rest of ya, but I must'a been sleep'in late the day all you main streeters got the BILLION$$$$ stuffed in yer pockets.....

To: Secret_Agent_Man who wrote (6047)	4/10/2008 3:30:18 PM
From: Tommaso	Read Replies (1) \| Respond to of 71463

>>>The premiums are “free” money – free until the bond actually goes into default, when the hedge fund could be on the hook for $100 million in claims. And there’s the catch: what if the hedge fund doesn’t have the $100 million?<<< As I have previously posted on SI, I had the opportunity in 2001 to see a speeded-up model of this process in action. I knew one of the principals involved, and what happened was well covered in national, international, and, as you may imagine, our local press. Kenny Kornfeld and his partner built up an enormous reinsurance business over maybe ten or fifteen years, bringing in Japanese banks and insurance companies as partners or members of the insurance pool. They insured a great many airliners. Everything went wonderfully until 9/11 when four planes went down on one day. This wiped out everything. Kornfeld's personal loss came to something like $400 million. The effect of that much money on the family had its remarkable aspects. To catalog the things that went on is to sound vindictive. Let one example suffice. Once Kornfeld was on his way home from Europe and did not feel likw talking to anyone on the airplane. So he booked nine seats on the Concorde to make sure no one was sitting beside him or in front or in back of him. google.com Anyway, these financial reinsurance arrangements sound rather like Fortress Re.