Forum Post: This Is A Shocking Video Of A Wall Street Trader Exposing The Impending Collapse Of The Economy, The Government, And Why They Can't Stop It.
Posted 12 years ago on Dec. 19, 2011, 4:08 p.m. EST by burningman2012
(187)
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"Yeah, that was good stuff. I know it sounds like the end of America, but Vlad is right. People need to be more a little more optimistic and community oriented. The first step is to strip the power from our self-serving, incompetent leaders and divide it amongst the people. For too long we've sat around waiting for someone else to make all of our problems go away. True power lies within all of us and with that power comes great responsibility."
-spiderman's grandma
could be the beginning of a brand new america...: )
Yeah... now after seeing that... I can now see a ton of more things happening within the near future... we have to get out of the U.S. before no one can get a home...
nwo is coming, get ready no one anywhere is safe.
not gonna be any better in any westernized nation or the rest of the world
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man that website realitysandwich.com is amazing...
simply amazing video.
OMG! So we either have to stop spending or face hyperinflation?? If this guy is right who will pay for our healthcare, pay our student loans, pay for our retirement??
OMG! We've already spent the money we were supposed to get!! So this is what 15 trillion in debt gets you. Shit.
play taps its over
not to mention the between 600 trillion and 1.5 quadrillion derivatives bubble there is not enough money in the world to bail that out. it is over. stick a fork in it.
do you mean that the derivatives are over priced? like houses became, such that they are going to revert to the mean in price and drain earnings from the future? or do you mean merely there are alot of them? yes, there are alot, but counter-parties (banks and brokerages etc...) are implementing risk and stability controls at the highest levels ever--they observed how inter-linked the system is as a result of events 3 years ago, and are paring back risk and monitoring it very closely.... so i don't understand what the precise issue is? I've done a fair amount of work with ISDA and trade derivatives daily. yes, the number is absolutely huge... and they are not well regulated and should be (we've seen what ineffective regulation can do--for example housing wouldn't have gone so high if it were regulated, such as a rule that one cannot borrow more than 30% of their income,,that's up to the banks,,, and many were lending at 55%-65% of income, plus negative amortization--in other words madness), so i don't think there's a bubble of the type we normally speak of.
really because http://theeconomiccollapseblog.com/archives/the-horrific-derivatives-bubble-that-could-one-day-destroy-the-entire-world-financial-system totally paints a different picture.
thanks for the article. i totally agree with the statement that there's marginal benefit for a risk that may not be easily grasped. for example, take an interest rate swap; it lowers your borrowing cost by say 0.5%--but if your counter party can't pay out, you'll lose that advantage. people taking those risks should be damned sure they know the financial positions and conditions of the counter-party. the ISDA agreement itself does provide regulation, of sorts, in that context. but i just don't agree there's a problem,,, there could be if all counterparties went broke. but then there are derivatives such as stock options, which are likewise a transaction between 2 parties, and they can profit or gain from them or hedge risk, but the OCC requires the stock or money to be in the counterparty's account, so again a pretty good regulation that ensures a counterparty isn't broke. i know there are many more derivative types but these are very common.
and buffett, well he called the US quadruple A credit... now what kind of company with 15T in debt, that runs massive deficits and nearly runs out of cash every 4 months unless they can borrow more (i.e., can't service the debt unless they add more!) and simultaneously gets republicans promising revenue (tax) cuts... who the heck would think that's quadruple A??? i just don't see an issue absent all counterparties refusing or being unable to pay on their contracts. it feels like Y2k--member that?
everything is going to shit http://theeconomiccollapseblog.com/archives/50-economic-numbers-from-2011-that-are-almost-too-crazy-to-believe
but let's stay on the derivative thing--Y2k again.... also wish the article would source the facts it cites--although i agree with the central thesis: everythings going to shit.... and will cite to von mises, because we just had the biggest credit expansion ever in the history of mankind:
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." - Ludwig Mises
====buy gold. short bonds. unless you believe that we abandoned credit expansion-- a view i don't share.... we just transferred it to the gov't/
just click on the highlighted words for sourcing otherwise it is most likely the authors hypothesis. i would love to chat more some other time but i have a pounding headache right now and i need to eat a couple advil and lay down for a few hours but i would love to pick your brain some more but it is really hurting to even look at the screen right now.
this is exactly what i have been saying for years : ) http://occupywallst.org/forum/will-the-untied-states-rise-to-the-occasion-or-cru/
Well I was sayin' it waaay before you and I knew the guy before he sold out. Even got his speech on vinyl.