Mean while what is happening in the world & your future

BrotherKantu

Chief Minister (5k+ posts)
This may be the last warning you may get before the collapse of financial world as we know it. Must watch and Please try to understand the issue behind. Pakistan's incompetent government done exactly what these powerful groups asked them to do.
Its your future. GET PREPARE

 

AsifAmeer

Siasat.pk - Blogger
Konsa experiment yaar..? Does anyone remember the tequila crises? How about the LTCM fiasco? Does anyone remember the term "greenspan put"? Money printing and handing it to the primary dealers has been goin on since the 80s. Every time a systemic problem starts off as a liquidity issue, it eventually turns into a solvency issue.

This is no longer a liquidity issue. That QE printing they speak of.. Do you know where all this money is going? To keep the interest rates from blowing up, to keep feeding the $647 trillion of outstanding derivatives..

In layman terms, this money printing is going to Banks who make bad loans and are now sitting on nonperforming assets which need to be marked down. Debt has to be liquidated for this global asset price bubble to pop and the return to market driven pricing would be welcomed by the global economy.
 

A.Ali.T

Minister (2k+ posts)
Konsa experiment yaar..? Does anyone remember the tequila crises? How about the LTCM fiasco? Does anyone remember the term "greenspan put"? Money printing and handing it to the primary dealers has been goin on since the 80s. Every time a systemic problem starts off as a liquidity issue, it eventually turns into a solvency issue.

This is no longer a liquidity issue. That QE printing they speak of.. Do you know where all this money is going? To keep the interest rates from blowing up, to keep feeding the $647 trillion of outstanding derivatives..

In layman terms, this money printing is going to Banks who make bad loans and are now sitting on nonperforming assets which need to be marked down. Debt has to be liquidated for this global asset price bubble to pop and the return to market driven pricing would be welcomed by the global economy.

Are these non performing assets in real estate market, if so then why aren't they liquidating them?
 

AsifAmeer

Siasat.pk - Blogger
The last line of defense is real estate and the cashflow from real estate. Remember, this real estate loan is the lumped into a Credit Portfolio, then converted into MBS. Then rehypothecated via derivatives and synthetically create squared and cubed structured products out of it. So the underlying collateral (the physical real-estate) may be $1 billion but its paper representation may exceed $150 billion... So if the underlying asset is written down from $1 billion to $900 million, banks would have to bring down that $150 billion to $135 billion - a loss of $15 billion, not $100 million.

And per Michael Hudson's book, US Banks have 80% real estate . A subtle change in the value of these assets is going to simply wipe out the whole western banking sector... Thats what Hitler is hinting at too.. There's no quality collateral asset remaining out there.

Are these non performing assets in real estate market, if so then why aren't they liquidating them?
 

A.Ali.T

Minister (2k+ posts)
I thought the 2008 melt down was all about marking the assets to market value, so you are saying that they still have not done that.
 

AsifAmeer

Siasat.pk - Blogger
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Remember the credit markets freezing up? It was then they suspended 'mark-to-market', and used marked-to-model. Sure, there was deleveraging.. and that has NOT stopped yet. Lekin this deleveraging is going to do its slow bleeding till the total system debt hits a critical point and the whole deal blows up.. Commodities are gonna continue to struggle. Lekin I feel commodities with monetary value will decouple from the economic deleverage. Gold is still within its downtrend channel ( <$1480~$1500). If the deleverage in gold continues, paper gold will get decoupled from physical gold and there is going to be a major undeliverable contract expire at COMEX. At that moment, paper Gold prices on the exchanges will collapse and physical gold will simply disappear from the markets. No price would be enough to buy gold.

But then, I dont have a clue as to what I am talking about either!

I thought the 2008 melt down was all about marking the assets to market value, so you are saying that they still have not done that.
 
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