Non-Borrowed Reserves - How Insolvent are US Banks ?

[Dufusyte]

Originally posted by: LegendKiller Non-linear transparency regulation is what caused this problem, among a myriad of other issues.

Your language is not transparent.

And your debt based monetary system, cloaked in cryptic language, is now revealed to be nothing but empty assurances and insolvent promises.

 

[GTKeeper]

Originally posted by: LegendKiller

Originally posted by: smashp

Originally posted by: WHAMPOM
I just don't get it, the delinquent mortages causing this banking crisis are still in the millions, but the bail out demands are in billions??? Who is trying to rush this through Congress???

The problem is that banks took Those mortgages and and used derivitives and credit swaps so they grew 30X

So if there is a mortgage for 100,000 that fails thebanks could be up to 3 million at risk because the way they manipulated the mortgage with fancy Calculus.

Thats the best way i can explain it.

It's got far less to do with derivatives thank you think. The real problem isn't delinquency or defaults, it's the fact that the banks took on too many assets, bought with debt. Now those assets are depreciating, not because the houses or underlying assets are depreciating, but because the market doesn't want to buy them (nobody can or will) except at a steep discount. The debt that bought the assets doesn't decline with the asset, so you have a mis-match.

Non-linear transparency regulation is what caused this problem, among a myriad of other issues.

Assuming 10 cents on the dollar return on all this crap. I wonder if this will be a global melt down of all financial markets......

 

[wwswimming]

Originally posted by: smashp

Originally posted by: Pliablemoose
Wanna throw up?

Default Credit Swap

http://en.wikipedia.org/wiki/C...fault_swap#cite_note-2

Chart showing growth of Credit Default swap contracts

Total cointracts in 2000 were worth about 900 billion and today are estimated at about 65 Trillion.

I wonder if this has anthing to do wit our current crisis?

i think it does.

who sold insurance against credit defaults ? investment banks & insurance companies.

credit default insurance is one of the primary forms of credit derivatives.
companies like AIG have sold insurance against credit default.

& lots of companies are defaulting on credit contracts, with more defaults on
the way.

if a company like AIG is unable to deliver the insurance they promised - because of lack of funds - they need more financing - or they are approaching bankruptcy.

i THINK this is what happened to AIG - they were unable to pay the credit default insurance. that's consistent with it being a "crisis of liquidity". what does AIG have for assets ? lots of mortgage backed securities and credit derivative constracts.

but who would buy a new credit default insurance from them, if they default ? makes it hard to sell those exotic insurance contracts.

 

[JS80]

Originally posted by: LegendKiller

Originally posted by: smashp

Originally posted by: WHAMPOM
I just don't get it, the delinquent mortages causing this banking crisis are still in the millions, but the bail out demands are in billions??? Who is trying to rush this through Congress???

The problem is that banks took Those mortgages and and used derivitives and credit swaps so they grew 30X

So if there is a mortgage for 100,000 that fails thebanks could be up to 3 million at risk because the way they manipulated the mortgage with fancy Calculus.

Thats the best way i can explain it.

It's got far less to do with derivatives thank you think. The real problem isn't delinquency or defaults, it's the fact that the banks took on too many assets, bought with debt. Now those assets are depreciating, not because the houses or underlying assets are depreciating, but because the market doesn't want to buy them (nobody can or will) except at a steep discount. The debt that bought the assets doesn't decline with the asset, so you have a mis-match.

Non-linear transparency regulation is what caused this problem, among a myriad of other issues.

Two terms to describe in a nutshell:
1) Mark-to-market
2) Liquidity

 

[LegendKiller]

Originally posted by: Dufusyte

Originally posted by: LegendKiller Non-linear transparency regulation is what caused this problem, among a myriad of other issues.

Your language is not transparent.

And your debt based monetary system, cloaked in cryptic language, is now revealed to be nothing but empty assurances and insolvent promises.

Wha'ts not transparent about english?

As opposed to a gold backed? That failed in the past.

 

[alchemize]

Originally posted by: jpeyton
Dear American:

I need to ask you to support an urgent secret business relationship with a transfer of funds of great magnitude.

I am Ministry of the Treasury of the Republic of America. My country has had crisis that has caused the need for large transfer of funds of 800 billion dollars US. If you would assist me in this transfer, it would be most profitable to you.

I am working with Mr. Phil Gram, lobbyist for UBS, who will be my replacement as Ministry of the Treasury in January. As a Senator, you may know him as the leader of the American banking deregulation movement in the 1990s. This transactin is 100% safe.

This is a matter of great urgency. We need a blank check. We need the funds as quickly as possible. We cannot directly transfer these funds in the names of our close friends because we are constantly under surveillance. My family lawyer advised me that I should look for a reliable and trustworthy person who will act as a next of kin so the funds can be transferred.

Please reply with all of your bank account, IRA and college fund account numbers and those of your children and grandchildren to wallstreetbailout@treasury.gov so that we may transfer your commission for this transaction. After I receive that information, I will respond with detailed information about safeguards that will be used to protect the funds.

Yours Faithfully Minister of Treasury Paulson

I ignore most of your posts but the follow ups made me read it.

That was a good one :laugh:

I would suggest you add references to being a good christian and a father, those always seem to be in there too

Double edit: nevermind, I see where you got it from another blog. Well, it was still funny, but it makes me feel better that I should continue to ignore your original content posts

 

[JeffreyLebowski]

Originally posted by: smashp

Originally posted by: WHAMPOM
I just don't get it, the delinquent mortages causing this banking crisis are still in the millions, but the bail out demands are in billions??? Who is trying to rush this through Congress???

The problem is that banks took Those mortgages and and used derivitives and credit swaps so they grew 30X

So if there is a mortgage for 100,000 that fails thebanks could be up to 3 million at risk because the way they manipulated the mortgage with fancy Calculus.

Thats the best way i can explain it.

Pretty much. They came up with fancy formulas and new age math to earn money and failed to understand that x=x not x=x*30
Pure fucking greed caused the mess we are in. Greedy bastards that didn't give a damn about anything except padding their bonus checks. All the fuck twits that are involved in this and sunk their ships and earned $100's of millions should have everything taken away from them, all of their assets should be seized and used to offset some of this bail out money. Sell everything they own except the clothes on their back, since that should be owned by the prison system. Then take them out back and put a bullet in their head, then charge the family for the bullet and disposal of the body.
Drastic times call for drastic measures. Want to curb the greedy SOB's that can't see past their noses. Let them know if you fuck up royally and screw the people of the nation, you're on a one way ticket to the grave.
But it will never happen, to many people in this country are to chicken shit to actually fix a problem. they'd rather let the problem grow and grow then complain about it when it gets to big.

 

[JS80]

Originally posted by: LegendKiller

Originally posted by: Dufusyte

Originally posted by: LegendKiller Non-linear transparency regulation is what caused this problem, among a myriad of other issues.

Your language is not transparent.

And your debt based monetary system, cloaked in cryptic language, is now revealed to be nothing but empty assurances and insolvent promises.

Wha'ts not transparent about english?

As opposed to a gold backed? That failed in the past.

Gold, silver, sea shells, what's the difference?

 

[evident]

Originally posted by: jpeyton
Dear American:

I need to ask you to support an urgent secret business relationship with a transfer of funds of great magnitude.

I am Ministry of the Treasury of the Republic of America. My country has had crisis that has caused the need for large transfer of funds of 800 billion dollars US. If you would assist me in this transfer, it would be most profitable to you.

I am working with Mr. Phil Gram, lobbyist for UBS, who will be my replacement as Ministry of the Treasury in January. As a Senator, you may know him as the leader of the American banking deregulation movement in the 1990s. This transactin is 100% safe.

This is a matter of great urgency. We need a blank check. We need the funds as quickly as possible. We cannot directly transfer these funds in the names of our close friends because we are constantly under surveillance. My family lawyer advised me that I should look for a reliable and trustworthy person who will act as a next of kin so the funds can be transferred.

Please reply with all of your bank account, IRA and college fund account numbers and those of your children and grandchildren to wallstreetbailout@treasury.gov so that we may transfer your commission for this transaction. After I receive that information, I will respond with detailed information about safeguards that will be used to protect the funds.

Yours Faithfully Minister of Treasury Paulson

wow. the sad part is its true

 

[BoberFett]

Originally posted by: LegendKiller

Originally posted by: Dufusyte

Originally posted by: LegendKiller Non-linear transparency regulation is what caused this problem, among a myriad of other issues.

Your language is not transparent.

And your debt based monetary system, cloaked in cryptic language, is now revealed to be nothing but empty assurances and insolvent promises.

Wha'ts not transparent about english?

As opposed to a gold backed? That failed in the past.

And your system is failing now, smart guy.

 

[BoberFett]

Originally posted by: LegendKiller

Originally posted by: smashp

Originally posted by: WHAMPOM
I just don't get it, the delinquent mortages causing this banking crisis are still in the millions, but the bail out demands are in billions??? Who is trying to rush this through Congress???

The problem is that banks took Those mortgages and and used derivitives and credit swaps so they grew 30X

So if there is a mortgage for 100,000 that fails thebanks could be up to 3 million at risk because the way they manipulated the mortgage with fancy Calculus.

Thats the best way i can explain it.

It's got far less to do with derivatives thank you think. The real problem isn't delinquency or defaults, it's the fact that the banks took on too many assets, bought with debt. Now those assets are depreciating, not because the houses or underlying assets are depreciating, but because the market doesn't want to buy them (nobody can or will) except at a steep discount. The debt that bought the assets doesn't decline with the asset, so you have a mis-match.

Non-linear transparency regulation is what caused this problem, among a myriad of other issues.

Yes, and the problem isn't the flood. The problem is all of that water spilling over the dam into the nearby town.

Smoke and mirrors. You're part of the problem.

 

[wwswimming]

Originally posted by: JS80Gold, silver, sea shells, what's the difference?

a few years back a Vancouver (city) newspaper had an article about an island
community near the island of Vancouver, where Ganja was one of the primary
mediums of exchange. the exchange rate was about $100 Canadian per oz.
practically legal tender.