Sunday, March 8, 2009

Today's Required Reading -OR- Teh Stoopid! It Hurts!

What Cooked The World's Economy?
It wasn't your overdue mortgage.

"What about the $600 trillion in credit derivatives that are still out there, sucking vital liquidity and credit out of the system? It's the tyrannosaurus in the mall, the one that made Henry Paulson, the former Treasury Secretary who looks like Daddy Warbucks, get down on his knees and beg Nancy Pelosi for a bailout.

Even with the bailout, no one can get their arms around this monster. Obviously, the $600 trillion includes not only many unseemly replicated death bets, but also some benign derivatives that creditors bought to hedge risky loans. Instead of sorting them out, the Bush administration tried to protect them all, while keeping the counterparties happy and anonymous."

6 pages of whoop ass truths about the ratfuckery, dire forecasts and a glimmer of a chance of a shot at proving once and for all; ratfuckery is punishable by LAW! Clawback? Fuck yes! These crimes have left a 5x5 targeting laser paper trail. Unwrapping them will make the economic nightmares seem a little bit more like Christmas. There are math heads who actually understand this shit. They should be conscripted immediately. A dozen or so of the best and brightest, could make short work of reverse engineering the schemes.
Tick Tock Tick Tock. A tweak here, a finagle there, $8 Trillion already sucked away.
Why won't it end dammit?

Because $8 Trillion is a little over 1% of the potential liabilities outstanding.
Wonder why Financial Guru Sick Rantelli is screaming and pointing fingers everywhere except at the problem?

Pissin' on a forest fire? Ayup, that oughta do it.

The bad news, a not insignificant number of people are poised to corner the market on money. The good news, none of that money is really real. And in a just world, hunting them for sport would become the national pastime.


Tengrain said...

Once again we are on the same page, Rehctaw. Over the weekend I found the market capitolization numbers for some of the big banks and AIG (even after we've dumped gazillions into their gaping maws), and we are completely fucked.



Rehctaw said...

I miss Gilly at times like this.