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Sorry, not following. Why is this scary? ECB is the creator of money, it can bear losses of any size, what does it matter?
A long, long time ago, in a world far removed from today, before hedge funds and bond kings, before strategic defaults, and mass unemployment, there was a time when credit standards mattered and central banks held only the highest standards. Scary, the brave new world of finance.
ECB loses on assets it takes on involves a fiscal transfer that exceeds the mandate of the ECB. It would upend the financial structure of the EZ. The idea is that the financial assets that the ECB is taking are collateralized, but what is the value of the collateral relative to the principal? It's definitely pushing out the envelope that risks EZ involvement through the ECB in exactly what they are trying to avoid by imposition of "fiscal discipline." It's save the banks and hang the people out to dry.
anything to do with the ML assets sold by Fed to GS in an earlier post ... ?
Tom yes it's like they may be headed towards convincing themselves that they really are bankrupt... I guess if they can actually take this self delusion all the way to the point where they actually believe they are bankrupt, then they really will be bankrupt... yes I'd have to agree that this is scary...Hey but not to worry Tom, Ben B told the Senate the other day that he has all of that stuff over there firewalled off for us.... no worries, Ben has got our 6.Resp,
@ Anonymous, they probably learned it from Ben. QE1 set a precedent for cb's, at the very least.
The scariest thing I read today is that the banks are once again in the repo market with subprime paper at levels last seen when all this chit blew up in the bankers faces. Fool me once, shame on you. Fool me twice, and I'm a foiken idiot.
I have a new one. Retail Gasoline Deliveries. I moving to under the bed for awhile with these numbers. They are real numbers not massaged like most reports in a black box without us knowing how the sausage was made. These number stagger the mind.http://www.oftwominds.com/blog.html
Matt, tell that to all the Empires that sit in the dust-bin of history. Just like you, they convinced themselves that the supposed impossible was truly impossible regardless of history. Currency debasement is a central factor in all their destruction. EVERY TIME! NOT SOMESTIMES!!
If Ben has our 6, it's because we are being bent over the table, and he's ready to give us the whole nine yards.
Anon, please don't mention Maiden Lane I, II or III, as they chit the bed this summer when there were actual open auctions. That problem left a mark, so now we have the big boys only club where billions at a time are traded in a closed auction, but at least the FED says there was competitive bidding although none of the details regarding the bidding have been made public, and Goldman Sucks, and it's leader, who does God's work, won the bid. Imagine that fact. Everywhere you turn, their are saints on Wall Street.
May I present a collage of scary things? This is for your viewing pleasure, so I take no responsibility if you want to crawl back into your momma's arms because they are so damn scary.1. Retail Gasoline Deliveries2. Baltic Dry Index3. Container Ship Time Charter Assessment Index Here's the link for the last one:http://www.bloomberg.com/quote/CTEX2500:INDThese along with the velocity of M1, M2 and MZM paint a damn horror show for those with eyes to see.
Matt, there are two concepts that you really need to learn. Exponential math and maximum potential. Maximum ponential says all things, men/biological, systems and countries all reach a maximum potential and then decline. It's a mathematical certainty I'm afraid. I know it's way more fun to think in linear terms, but life doesn't follow that constuct. Deal with reality already.
Let me add one more point of data regarding the collapse in shipping. The company below has been in the shipping business since 1943. The chart is fugly!:http://www.harperpetersen.com/harpex/harpexRH.do?timePeriod=Years10&&dataType=Harpex&floatLeft=None&floatRight=None
Here's the difference between first use of money like the bankers have, and J6P who must suffer under debt such as this per a comment on ZH:"There is one credit card company out there, First Premier, that charges interest rates of up to 49.9 percent. Amazingly, First Premier has 2.6 million customers."
Anonymous, I hate to tell you about the "payday lenders." They charge in the area of 400% and are financed in this sleazy operation by the TBTFs.
This chart is by far the scariest. Here's some exponential math for you folks. Check out this chart from Market-Ticker for the nasty details. this is why I say you can't outrun exponential math or maximum potential.Matt, care to explain this chart in a way that disproves my thesis? I mean Hell we can just keep printing right? We rule the world and all that other BS that tramples history and reality.http://market-ticker.org/cgi-ticker/akcs-www?get_gallerynr=2772
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