Comments on: How the Global Monetary System Could ‘Blow Up’ http://www.contrarianprofits.com/articles/how-the-global-monetary-system-could-blow-up/4214 Access market-beating ideas from the world's top investment gurus on stock market investing, the gold market, ETFs, Forex trading and real estate values. Tue, 18 May 2010 05:09:46 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Mark http://www.contrarianprofits.com/articles/how-the-global-monetary-system-could-blow-up/4214/comment-page-1#comment-2601 Mark Fri, 01 Aug 2008 19:06:49 +0000 http://www.contrarianprofits.com/articles/how-the-global-monetary-system-could-blow-up/4214#comment-2601 Ahhh, but there is another way. We recognize that the financial system is kaputt. The banks are bankrupt. Look at their stock prices over the last 5 years. Look at the BOGNONBR (http://research.stlouisfed.org/fred2/series/BOGNONBR), the amount of non-borrowed reserves held by Fed member banks (it is approaching -$150 billion, i.e., all their reserves are borrowed). Right now CDO ABS paper is selling for $0.22 on the dollar. Structured investment vehicles are also selling discounted paper. No one wants it. Credit default swaps are going bust, which effects municipalities, and feeds right back into the CDO and SV problems. The BIS etimated $1.14 QUADRILLION in total notional derivatives for Q2 2008. This is the white elephant in the room: derivatives gambling. 15-20 x the world's GDP is tied up in ways no one can figure out. The housing bubble was just another bubble to blow up the derivatives bubble. The overall derivatives bubble needed more funds, so they turned to the mortgage brokers, who willingly supplied them with paper. EVRERYONE knew what was going on. Including the Feeral Reserve. In fact they encouraged and promoted derivatives (especially Greenspan). Our only hope is to recognize that the system is bankrupt, and replace it with a better one. How do you unravel a $QUADRILLION worth of nebulous gambling-like contracts? You don't, not while simultaneously saving nations and their people. You need to call it what it is, bankrupt, and start over. www.TakeBackTheFed.com www.xFed.mobi (mobile) Ahhh, but there is another way. We recognize that the financial system is kaputt. The banks are bankrupt. Look at their stock prices over the last 5 years. Look at the BOGNONBR (http://research.stlouisfed.org/fred2/series/BOGNONBR), the amount of non-borrowed reserves held by Fed member banks (it is approaching -$150 billion, i.e., all their reserves are borrowed).

Right now CDO ABS paper is selling for $0.22 on the dollar. Structured investment vehicles are also selling discounted paper. No one wants it. Credit default swaps are going bust, which effects municipalities, and feeds right back into the CDO and SV problems.

The BIS etimated $1.14 QUADRILLION in total notional derivatives for Q2 2008. This is the white elephant in the room: derivatives gambling. 15-20 x the world’s GDP is tied up in ways no one can figure out. The housing bubble was just another bubble to blow up the derivatives bubble. The overall derivatives bubble needed more funds, so they turned to the mortgage brokers, who willingly supplied them with paper. EVRERYONE knew what was going on. Including the Feeral Reserve. In fact they encouraged and promoted derivatives (especially Greenspan).

Our only hope is to recognize that the system is bankrupt, and replace it with a better one. How do you unravel a $QUADRILLION worth of nebulous gambling-like contracts? You don’t, not while simultaneously saving nations and their people. You need to call it what it is, bankrupt, and start over.

http://www.TakeBackTheFed.com
http://www.xFed.mobi (mobile)

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