Silicon Investor (SI) -- The First Internet Community

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.

Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?

To: sandintoes who wrote (748)	11/9/2008 7:42:02 PM
From: LLCF	1 Recommendation Read Replies (1) \| Respond to of 103300

<Got it, you mean the whole world was in on this crooked scheme?> Well, yes and no... ie. the REST of the world were the "bagholders"... they were duped. You've probably noticed we're in the process of making sure those IOU's (US dollars) are a rip up in the near future. DAK

To: sandintoes who wrote (748)	11/10/2008 9:46:05 AM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 103300

Re: "Got it, you mean the whole world was in on this crooked scheme?" What I was saying was that there were no 'cops on the beat' --- regulators were actually BANNED from regulating these private financial derivatives such as the notorious 'Credit Default Swaps'. They traded on no regulated exchange. They were excluded from all government regulation. And they GREW into a market at least 100 TIMES LARGER than all of America's sub-prime mortgages added together. Literally... in EXCESS of 50 TRILLION face value. (Larger then the annual GNP of the entire world.) A 'house of cards' just waiting to collapse and tear the economic guts out of nations as it fell. >>> Think of it this way, (it's simple human nature): Most folks in a crowd are probably fairly honest... but if you left a million dollars in cash laying around on some street corner, I'll bet you would not have to wait very long before some dishonest or greedy person walking by stooped to pick it up. Well, with NO REGULATIONS, all of the CDSs (basically: insurance contracts) QUICKLY turned into "liars notes"... the companies who wrote and sold them (big insurance companies like AIG, Hedge Funds, off-shore banks, investment banks like Lehman and Bear Stearns and UBS, etc., etc., etc.) discovered that they did not have to bank any reserves to collateralize these insurance contracts that they sold, because there was no one regulating them. They thought that they had discovered a way to 'print money' --- all they had to do was write some notes and sell 'em... and then pocket a couple of tens of millions each time. Never figured there was any risk that the insurance they were 'selling' would ever be called on, so they sold it in AMOUNTS VASTLY GREATER THAN THE NET WORTH of their entire companies. It's not hard to understand, and the American sub-prime problems were just the fuse that ignited the dynamite... but once the dynamite was stacked up like that, there would have always been some spark coming along some time to set it off.