chromium05
10-02-2008, 07:00 AM
Most people on here seem to have some sort of grasp on how money works.
However, I implore EVERYONE that reads this post to go HERE (http://www.populistamerica.com/money_as_debt) and read the text. Then, watch both items in the links.
The realisation of what goes on is like a kick to the stomach.
Oh, and by the way - the REAL shit is about to hit the fan over the next few days and weeks.
Quote: (http://www.bbc.co.uk/blogs/thereporters/robertpeston/)
"Today is the beginning of "auction season", when the International Swaps and Derivatives Association starts a series of auctions to settle who pays what to whom on a plethora of credit derivative contracts relating to businesses that have gone into default.
It's settlement time on those humungous insurance policies for corporate debt, called credit default swaps (CDS), which I've mentioned to you as being another potentially lethal flaw in the financial economy.
In the coming three weeks, payouts of hundreds of billions of dollars may be made - or at least demanded - to cover losses arising from the defaults on the debt of Fannie Mae, Freddie Mac, Lehman and Washington Mutual.
However, I implore EVERYONE that reads this post to go HERE (http://www.populistamerica.com/money_as_debt) and read the text. Then, watch both items in the links.
The realisation of what goes on is like a kick to the stomach.
Oh, and by the way - the REAL shit is about to hit the fan over the next few days and weeks.
Quote: (http://www.bbc.co.uk/blogs/thereporters/robertpeston/)
"Today is the beginning of "auction season", when the International Swaps and Derivatives Association starts a series of auctions to settle who pays what to whom on a plethora of credit derivative contracts relating to businesses that have gone into default.
It's settlement time on those humungous insurance policies for corporate debt, called credit default swaps (CDS), which I've mentioned to you as being another potentially lethal flaw in the financial economy.
In the coming three weeks, payouts of hundreds of billions of dollars may be made - or at least demanded - to cover losses arising from the defaults on the debt of Fannie Mae, Freddie Mac, Lehman and Washington Mutual.