Tesa

Berkshire Hathaway: Proof That the CDS Market Is Irrational

They could have had a viable CDS market but it had to be hedged properly so they should have avoided fraudulent ratings but instead they chose profiteering which was about scamming.

CDS's are viable financial tool but they needed regulation to contain them and without meaningful rating system and boundaries, they became instruments of looting the public.


On Mar 07 11:49 AM China Expert wrote:

> The CDS market is one of the major culprits that threatens our financial
> system

Berkshire Hathaway: Proof That the CDS Market Is Irrational

Toro, you are way to logical herel. You too, avoid flying small planes.

What can you say to the insane are in charge of asylum to change their minds..

Bank Liabilities: Why the Discussion Isn't Explicit

It was not just one scheme. Many many schemes were use to extract cash from the public and their investments. The sub prime was designed specifically to extract cash from house buyers. And they are still scheming, they are hoping and are acquiring assets pennies to a dollar and they extract a huge profit from it as middle men. It never ends.


On Mar 07 11:26 AM Gold is Good

Bank Liabilities: Why the Discussion Isn't Explicit

Market can require to collapse the entire western civilization by that comment. The private capital and market could not save the market at the point of collapse. Only the social capital can save the markets at that junction.


On Mar 07 11:18 AM User 371607 wrote:

> These banks are insolvent because they were poorly managed or because
>
> The free market demands that poorly run companies go OUT OF BUSINESS

Bank Liabilities: Why the Discussion Isn't Explicit

mr freddo, AIG only bled 60 billion last quarter, that does not add up to something like a 130 trillion dollar default. Most of the speculative derivatives must have been hedged. Whether the xombie banks recover or not, the economy will recover.

Bank Liabilities: Why the Discussion Isn't Explicit

Its the opposite. The AAA ratings were designed to swindle the public and foreign banks to hold the bag of derivative losses designed by fraudsters running the US banking system.


On Mar 07 10:27 AM Jimmy Lathrop wrote:

> stupid derivative bets for
> the benefit foreign institutions and a select few banking institutions
> like GS. The discussion isn't explicit because we have a concept
> in economics called risk premium, meaning that writing derivatives
> or CDOs involve a certain amount of risk, and that risk was mispriced
>

Bank Liabilities: Why the Discussion Isn't Explicit

You have got it crossed to justify your rants, There is not enough "private" capital to save it. US government will not run out of cash . It can always print money and that is why the banks rely on it to hold their bags after swindling the public.


On Mar 07 09:33 AM The Geoffster wrote:

> Fitz919 is right on! The notional debt is larger than any possible
> gov't guarantee. Treasury and the FED are treading water hoping the
> system will right itself. Meanwhile, the crisis is tailor made for
> Obama's brand of socialism. The largest loss of wealth in history
> will be followed by the largest transfer of wealth in history.

Bank Liabilities: Why the Discussion Isn't Explicit

They may not recover in 10 years but 15 years they usually don't then in 20 years if they are hard assets. T

he housing market that collapsed "Lincoln Savings and Loan" in 1980s did eventually rebound and Keatings actually cashed on it by buying them at discount.

These assets should be separated an locked up in vault and held for 15 years and then be reevaluated for fair value.

On Mar 07 09:27 AM paul1307 wrote:

>. The mortgage was for $480K and the house was listed at $305K,
> and the bank owed two years back real estate taxes (which they would
> have had to pay off in the event of a sale). The house is now worth
> about $200K.
>
> When your portfolio goes down 50%, it then has to go up 100% for
> you to break even. Get it? Housing down 50% requires herculean growth

Bank Liabilities: Why the Discussion Isn't Explicit

What is the ring fence solution. Can anybody here describe it and is it viable.

VIX Suggests Changes in Selling Behavior

The lower VIX means that the market has taken out all the fearful and those that are left are no longer the traders but rather the funds who trade the US markets who hold the pension plans that have collapsed. Now you should you try to work to suck more money out of this markets, you cant produce more fear because people who have lost 90% of their investments don't give a rat ass anymore. Hopefully you will lose 90% of your investments to make up for their loss.

The Bubble of Uncertainty Is About to Burst

The fraudulent capitalism has in fact collapsed the markets and has cased complete insolvency of the world banking system. You are just ranting. Nothing that your still blind tribe in denial, could have done to fix it to repair or let it to repair itself because the fraud and resulting collapse was massive Circuit city couldn't have been bought if government had not stepped in to save the banks.

Look at what Volker says, is he a communists or Marxist.

“In this world, I don’t see how we can avoid international consistency” on securities regulations going forward, he said. “The U.S. is no longer in a position to dictate that the world does it according to the way we’ve done it.”
............
"Volcker, who ran the Fed from 1979 to 1987, said the financial industry’s problems stem from larger issues. “I don’t think this is just a technical problem, it’s a societal problem,” he said. He cited bankers on Wall Street receiving multimillion-dollar bonuses for engineering failed mergers.

“There’s something wrong with the system,” Volcker said. “What are the incentives, what’s going on here?”
www.bloomberg.com/apps...



On Mar 06 03:56 PM Socialism cannot compete! wrote:

> This is NOT just about uncertainty. In fact, it's not uncertain
> at all!!! It is VERY CERTAIN that Marxist economics prevent prosperity.
> The Big O has been implementing his plan to tax the producers and
> give it to the failures. We are keeping the zombies alive, and reducing
> not only the current profits of the producers, but LIMITING their
> ability to increase in the future -- the good companies should be
> taking the market share of those which ought to be allowed to fail.
> This is being inhibited by the propping up of those zombies. One
> counter-example may prove to illustrate this -- let's watch the next
> couple quarters from Best Buy, after Circuit City was allowed to
> fail.

The Bubble of Uncertainty Is About to Burst

Why not since the inception of the markets. Why not since discovery of oil.

Its the Energy that got harvested obviously and while there is enough left, the markets have to figure something else to energize the bubbles with.


On Mar 06 11:47 AM TexasER wrote:

> then the bubble looks like the last 30 years.

When Unemployment Peaks, The Bottom Should Follow

The assumption in that case would be that the setup would be someday perfect. Markets all down and yet rosy future written all over it! It wont be that way! People can be catching a short rally at the peaks or miss large rally.

On Mar 06 02:21 PM akapital wrote:

> i think we're looking at a very saggy bottom - aesthetically unattractive
> but from an investment standpoint it means plenty of time to get
> in....not a point in time but very long and drawn out me thinks...but
> what do I know I am just a kid from Brooklyn...

The Bubble of Uncertainty Is About to Burst

What was that event if you don't mind me asking.


On Mar 06 03:11 PM plumstupid wrote:

> The destruction from within began in earnest at 1200 20JAN81.

The Bubble of Uncertainty Is About to Burst

I have to agree with some points the author makes. And again, there is very little meat left in the companies that have been shorted for months upon months. People can short as much as they like but there is not much cash left for all of them to chew on. So they are now attacking the relatively healthy companies with high market cap to extract cash from these markets.

They have extracted something like 3% today from the high capitalized ones; some that are not doing badly either.

Its just matter of time for healthy companies to take companies private. While the commodity and basic material producers will look into having cartels since the market pricing scheme is getting really wacky.