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

To: Skeeter Bug who wrote (26583)	1/27/2010 6:09:54 PM
From: Real Man	Read Replies (1) \| Respond to of 71463

Hard to say, Skeet, it is not that simple. Technically, they were not stealing like Madoff, but I agree with you on the solution. It is mine and Scholes' Red Adair in a different form. I just presented "their" point of view, since I have them as good friends, or even family.

To: Skeeter Bug who wrote (26583)	1/27/2010 6:20:36 PM
From: Real Man	Read Replies (1) \| Respond to of 71463

Overall, derivatives on WS went through a standard bubble dynamics - what makes money gets more. Success is rewarded, tons of science Ph.D.'s employed getting supercomputers to work. Tons of Mexicans in housing construction. Tons of folks in internut business A matter of wrong policies, wrong employment. All vanished into the black hole of debt. Not guilty of stealing (except in some cases!) The money just evaporated. 15% of 10 Trillion in mortgages under water. Folks under water in their home, banks under water as they foreclose. The derivative group in a major bank is pretty small, maybe 12 people. They all got fired. We can argue if Red Adair with government as a lender of last resort in place of a failed banking system would have been a better solution. The question is, how much would FDIC have to pay if 90% of the banking system failed and where would they get the money? The black hole would expand enormously if not arrested.