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

To: Chas. who wrote (66880)	10/6/2010 7:06:18 AM
From: TobagoJack	Read Replies (2) \| Respond to of 217798

<<So our mortgage meltdown financial crisis is a diabolical Chinese scheme to support Chinese exports...???>> ;0) yeup, the chinese instructed americans to build and sell houses at nothing down, and to build a derivative bomb on top of the entire contract, like in the movie "contact" just in in-tray § Total world financial assets about $180trn § Total world GDP around $60trn § Total cost of financial crisis $60-200trn, according to Andrew Haldane § Total global derivatives outstanding about $600trn, according to some, down from about $700trn pre-crisis § Net derivatives position estimated $30trn by others § Total mkt cap of equities worldwide about $50trn, according to current prices § US national debt about $14trn, but some claims rise to $100trn based on unfunded liabilities § World consumes $2.3trn/year of oil in 2010E, approx, based on about 85mpd and recent avg prices § Iron ore in 2010E $200bn/year approx, based on about 1.6bn tons § Total copper production in 2010E $147bn/yr based on Simon Hunt estimate § Total asset value of US agricultural land, including buildings worth about $1.8trn w/ low debt (2007 $2.2trn) § All gold mined worth about $7trn, w/ about 20% ratio un-mined to mined, based on many discussions… § All silver mined based on 40bn ounces is worth about $800bn, based on market prices and websites § World fleet delivered and orderbook are about 1+$trn, based on rough estimates

To: Chas. who wrote (66880)	10/6/2010 7:21:35 AM
From: carranza2	Respond to of 217798

I don't think it was a scheme at all. I doubt the players had any idea as to what the consequences would be. You'll recall that the Japanese were the originators of the model, not the Chinese.

To: Chas. who wrote (66880)	10/6/2010 10:57:43 AM
From: Hawkmoon	Read Replies (3) \| Respond to of 217798

So our mortgage meltdown financial crisis is a diabolical Chinese scheme to support Chinese exports...??? I wouldn't go so far as to directly blame China for our mortgage meltdown, but they helped to lay the foundation for what made sub-prime and mortgage securitization possible. And as Carranza pointed out, it's not just a Chinese model. Japan and Korea and other Asian nations have done the same thing. But we could "handle" letting Japan and Korea do it because they are allies and we have aligned interests (for the most part). But China is different. They are not our ally. They are our rival. And that's ok, so long as that rivalry remains "friendly" and mutually beneficial. It inspires both parties to compete and not become economically stagnant. Same with Europe. But this is manufacturer (vender) financing.. Of that, there is no doubt. It's an Asian tactic to arrange wealth transfer.. In fact, it's a lot like what a leech, or mosquito does when they suck blood. They inject an anesthetic (buying our debt) in order to deflect from, or render us indifferent to, the fact that they are draining our wealth to support their economic organism. Again, we could "manage" Japan, because we have common interests. But China is not an ally, so we shouldn't be treating it in the same manner until such a time as our interests can clearly align. Hawk