A group of people now own USA
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banks and non-bank financial institutions lost trillions in derivatives such as CDS. Since derivatives trading is zero sum game, a group of people made trillions. Banks could not pay, hold nation hostage, end up tax payers pay for the loss. This loss is not recoverable because all derivatives contracts have expiry dates. hence, contrary to widely held hope that the toxic assets (which are derivative contracts) paid by tax payers would eventually recover is not possible. the end result is a group of people who made trillions now own USA. this is a frightening thought. we all think China is the largest creditor of USA. This is not true. The largest creditors of USA far exceeds China and these could be some financial institutions or ultimately some individuals.
it is possible to know who are these people, because all OTC derivatives contracts must be registered with ISDA. Question is why isn't the US government doing anything about it?
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they lost trillions?
those trillions don't even exist
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Originally posted by youyayu:
they lost trillions?
those trillions don't even exist
AIG rocks jerry!
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Originally posted by youyayu:
they lost trillions?
those trillions don't even exist
Depends, it depends on how you define "don't"
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Originally posted by Daddy!!:
banks and non-bank financial institutions lost trillions in derivatives such as CDS. Since derivatives trading is zero sum game, a group of people made trillions. Banks could not pay, hold nation hostage, end up tax payers pay for the loss. This loss is not recoverable because all derivatives contracts have expiry dates. hence, contrary to widely held hope that the toxic assets (which are derivative contracts) paid by tax payers would eventually recover is not possible. the end result is a group of people who made trillions now own USA. this is a frightening thought. we all think China is the largest creditor of USA. This is not true. The largest creditors of USA far exceeds China and these could be some financial institutions or ultimately some individuals.
it is possible to know who are these people, because all OTC derivatives contracts must be registered with ISDA. Question is why isn't the US government doing anything about it?
This is just ridiculous.
Who says that the "toxic assets" "(...are derivative contracts)"?
Who says that "banks and non-bank financial institutions lost trillions in derivatives such as CDS"?
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Originally posted by AndrewPKYap:
This is just ridiculous.
Who says that the "toxic assets" "(...are derivative contracts)"?
Who says that "banks and non-bank financial institutions lost trillions in derivatives such as CDS"?
what is your professional opinion? i wonder who owns part of USA individually now... our old friend, Lucifer?
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Originally posted by novelltie:
what is your professional opinion? i wonder who owns part of USA individually now... our old friend, Lucifer?
someone called me??? yes! can i help you, this is 666...Angel code 7030. -
Originally posted by Daddy!!:
we all think China is the largest creditor of USA. This is not true. The largest creditors of USA far exceeds China and these could be some financial institutions or ultimately some individuals.
I thought the largest creditor of the USA is the Federal Reserve ....
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Originally posted by maxtor:
I thought the largest creditor of the USA is the Federal Reserve ....
no, it is the USA army -
to nolveltie: At the simplest... Every mother son that has us money owns a piece of USA... And because the US dollar is recognised worldwide, owns a piece of the world. If you have 1 cent you own a very small piece
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just write more IOUs and 1 day burn the house down so no more IOU
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basics: the key word is leveraged securisation. banks and financial institutions securitise mortgages and sold it to the markets. a lot leveraged securisation = CDS repackaged into senior, junior, equity tranches. rating agencies then rated the senior tranches as AAA etc. the bottom line is that a CDS could be sold on a mortgage or corporate bond more than once.
banks' exposure to CDS is trillions, a major worry for Alan Greenspan when he testified last year.
ultimately, the more bailouts for these derivatives losses, the more bankrupt the tax payers become and the bucks end up in the hands of those few who bought the protection.
if there is no bail out, at least the tax payers are not bankrupt...only those involved the buying and selling ie trading of derivatives.
Obama is screwing the country big time.
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Originally posted by seyKai:
just write more IOUs and 1 day burn the house down so no more IOU
No need, just declare bankrupt and after 7 years under the NY judiciary, you are cleared. -
Originally posted by Daddy!!:
basics: the key word is leveraged securisation. banks and financial institutions securitise mortgages and sold it to the markets. a lot leveraged securisation = CDS repackaged into senior, junior, equity tranches. rating agencies then rated the senior tranches as AAA etc. the bottom line is that a CDS could be sold on a mortgage or corporate bond more than once.
banks' exposure to CDS is trillions, a major worry for Alan Greenspan when he testified last year.
ultimately, the more bailouts for these derivatives losses, the more bankrupt the tax payers become and the bucks end up in the hands of those few who bought the protection.
if there is no bail out, at least the tax payers are not bankrupt...only those involved the buying and selling ie trading of derivatives.
Obama is screwing the country big time.
For over the decades, during it good times, the US fed/govt had taxed both corporation and its citizens multi billions of dollars. USA has one of the highest taxation countries in the world. Currently the bailing out by the govt is only taking these old reserve out to help...the current taxes is not included. If the current taxes was used to bail out banks out of it derivatives, the tax will had increased to sky rocket condition. But it is not the case, USA still had multi billions of reserve to deal with. So dun worry. Just like the British, their colonials time earning from those colonies like singapore, india etc etc is still perserved in their treasury. -
Originally posted by Daddy!!:
basics: the key word is leveraged securisation. banks and financial institutions securitise mortgages and sold it to the markets. a lot leveraged securisation = CDS repackaged into senior, junior, equity tranches. rating agencies then rated the senior tranches as AAA etc. the bottom line is that a CDS could be sold on a mortgage or corporate bond more than once.
banks' exposure to CDS is trillions, a major worry for Alan Greenspan when he testified last year.
ultimately, the more bailouts for these derivatives losses, the more bankrupt the tax payers become and the bucks end up in the hands of those few who bought the protection.
if there is no bail out, at least the tax payers are not bankrupt...only those involved the buying and selling ie trading of derivatives.
Obama is screwing the country big time.
Who said "banks and financial institutions securitise mortgages and sold it to the markets."?
You are just getting more and more ridiculous.
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Originally posted by AndrewPKYap:
Who said "banks and financial institutions securitise mortgages and sold it to the markets."?
You are just getting more and more ridiculous.
why u scold daddy!!!??? must respect yr daddy ok.Check if u took the wrong medication or not??
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it is so commonly known that you are expected to know.
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wee! Daddy's Home
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lets take a look at AIG's fiasco recently. the American public was outraged that the bailout money was used by AIG to pay to financial institutions like Goldman Sachs and some European banks. this is exactly what i described. AIG's counter-parties such as Goldman Sachs and some other banks outside America traded against AIG and made profits. AIG lost the trade, could not pay up, so tax payers paid for the loss. The loss was found in AIG Financial Products department which traded hell of derivatives which include CDS.
Take a look at Atobe's chart of American commercial banks' exposure to derivatives, the total exposure is about 3 times the total net worth of Americans' household.
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lets say US government and US Federal Reserve printed hell of lots of money to top up the loss made by US commercial banks. US banks are kept solvent, safe and sound. But tax payers bankrupt in the process. in the end, US banks will still lose money because they rely on the public ie Americans' deposit base ie money base to make the interest rate spreads and commissions. If tax payers are bankrupt, the banks will still lose money.
what we have now is a Lose, Lose situation if the US government continues its relentless bailouts.
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what the world needs is a grand assembly of, not politicians, not central banks, but counterparties ie hedge funds, banks and other financial institutions in all these enormous derivatives trades to agree that no one take enormous profit ie net out all the contracts in a socially responsible manner.
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aiya, daddy, u buy alots of American equities is it??? why u so worry about their money??? me just ordered chay kuay teow, want to share share or not?? spending also not enuf who care about their money
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because we are a "dependent" country while USA is "independent". What happens in USA has an significant impact on Singapore and many other export oriented countries. Whether the recession lasts 3, 5 or 10 years will also depend on the consuming country. If the consumers in the consuming country ie USA, are bankrupt, what do you think will happen to those countries which depend on exports to survive?
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Originally posted by Daddy!!:
it is so commonly known that you are expected to know.
...another ridiculous statement.....
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Originally posted by Daddy!!:
lets take a look at AIG's fiasco recently. the American public was outraged that the bailout money was used by AIG to pay to financial institutions like Goldman Sachs and some European banks. this is exactly what i described. AIG's counter-parties such as Goldman Sachs and some other banks outside America traded against AIG and made profits. AIG lost the trade, could not pay up, so tax payers paid for the loss. The loss was found in AIG Financial Products department which traded hell of derivatives which include CDS.
Take a look at Atobe's chart of American commercial banks' exposure to derivatives, the total exposure is about 3 times the total net worth of Americans' household.
How ridiculous! What counter party to the banks? AIG paid up because AIG insured the banks (sold the banks insurance).