Looking only at 86 banks with assets < $10 billion at December 31, 2008 there are notional derivatives exposures of $201 trillion, on top another $5.570 trillion in commitments to lend, $1.991 trillion in securitized assets, and $0.950 trillion in standby letters of credit and foreign office guarantees, a total exposure of $219.418 trillion, or a leverage ratio of more than 241:1 on large-bank capital of $909 billion. Not all bad... that is perhaps one third the gggggggggglobal picture.
http://www.anderson-online.co.uk/lions2009/quark.jpghttp://upload.wikimedia.org/wikipedia/commons/3/37/Bubble_sort_animation.gif
http://i168.photobucket.com/albums/u162/christianmurdock/wallstreet.jpghttp://tbn0.google.com/images?q=tbn:nsv0mzFuJfN_zM:http://elitecustomsigns.com/images/31012.jpghttp://www.cfaforums.org/pw/Lists/Team%20Discussion/Attachments/86/gsonstrike.jpg
..
It would help to have every one on board of course.
1st order of the day - invade the Cayman isle's. :D
Like, they are gonna die fighting on the beaches.......... hahaha..... titter. titter. :p:p
http://images.google.com/images?client=opera&rls=en&q=cayman%20isles&sourceid=opera&ie=utf-8&oe=utf-8&um=1&sa=N&tab=wi http://media-cdn.tripadvisor.com/media/photo-s/00/14/18/52/cayman-islands.jpgU GOT TO FITE 4 YOUR RITE TO PAR 3
..
herosrest
03-26-2009, 10:10 PM
The only, one and only, true problem that exists with data in post 1 is.........................
That data is not freely available to any and all that have even a modicum of interest in financial doings. They are not bad numbers, they are trade, open markets will adjust to market data and take ADVANTAGE, provided an eye is kept on what occurs and a over sight maintained at arms length with a pair of nut crackers in reserve - business will simply trade through the positions, profitably -
if short trading is nailed to a wall and accounting reflects contract duration.
Mark to market risk assessments are suicide.
herosrest
03-27-2009, 12:01 AM
Idle thought, hopeless stuff really. It would just be wonderful if.................. this G20 went on quietly with out every moron bleeding heart and politico headcase on the planet deciding to party it on down. Then maybe, maybe just, the population here, ordinary 'hey, we just get on with things' people might just get a message across to these clowns that they really are clowns and it has all gone on a li'l bit to long and they are supposed to be looking after us, not their own sorry, silver spooned tongues. A simple half hour of silence...... one lunch time. Let the buggers know! Sweet dreams, eh!
herosrest
03-27-2009, 04:42 PM
Tesla electric car a go-ahead, if someone else pays for it - We should build this in UK, now. Dust off the memory banks of DeLorean, get it right, take a half share, bang up production facilities and start knocking them out, by the 100,000's. Quantive speeding i calls it. Invest, invest and damned.............
http://photos.autoexpress.co.uk/images/front_picture_library_UK/dir_609/car_photo_304738_25.jpg (http://www.digitaljournal.com/article/269942)
werz
03-27-2009, 06:08 PM
When I was working full time I could see the value of buying one.
But as the world is rapidly running out of places to work at, unless you can get a job counting taxpayers bailout money, they've missed tha boat as they say in sunny down town Washington.
herosrest
03-28-2009, 10:49 AM
http://tbn0.google.com/images?q=tbn:nsv0mzFuJfN_zM:http://elitecustomsigns.com/images/31012.jpg (http://en.wikipedia.org/wiki/Rules_of_Acquisition)__________http://upload.wikimedia.org/wikipedia/commons/thumb/c/cc/Myron_Scholes_2008_in_Lindau.png/200px-Myron_Scholes_2008_in_Lindau.png (http://en.wikipedia.org/wiki/Myron_Scholes)____http://www.anderson-online.co.uk/lions2009/quark.jpg (http://en.wikipedia.org/wiki/Ferengi)Modern option pricing techniques are often considered among the most mathematically complex of all applied areas of finance. Financial analysts have reached the point where they are able to calculate, with alarming accuracy, the value of a stock option. Most of the models and techniques employeed by today's analysts are rooted in a model developed by Fischer Black and Myron Scholes in 1973. This paper examines the evolution of option pricing models leading up to and beyond Black and Scholes' model.
The normality assumption of the Black–Scholes model does not capture extreme movements such as stock market crashes.
http://upload.wikimedia.org/math/8/1/b/81b3baf525f3d5f079cdb868f7c1f231.png (http://en.wikipedia.org/wiki/Black-Scholes)______http://upload.wikimedia.org/math/2/e/d/2ed0a9f60ecc42f89f4bbac554af52e3.png (http://en.wikipedia.org/wiki/Short_selling)
herosrest
03-28-2009, 11:41 AM
The normality assumption of the Black–Scholes model does not capture extreme movements such as stock market crashes.Hey, Ben! It was in the small print. Right where the watermark printed on the attached cover note!
herosrest
03-28-2009, 10:06 PM
TEN INCH - TOUCH SCREEN.
http://img504.imageshack.us/img504/6522/pwned7tv.png (http://media.urbandictionary.com/image/large/pwned-48495.jpg)
Apple will take third-quarter delivery of newly developed 10-inch touchscreens from Taiwan, a source said on Wednesday, amid talk the U.S. firm is developing a touchscreen PC. http://www.reuters.com/article/newsOne/idUSTRE52A0RH20090311 (http://www.reuters.com/article/newsOne/idUSTRE52A0RH20090311)
August 28, 2008 12:34 PM PDT - Apple applies for touch-screen Mac patent (http://news.cnet.com/8301-13579_3-10028301-37.html) Given Apple' focus on multitouch user interfaces, fair speculation is the company wants something similar with more powerful computers than the iPhone or iPod Touch.
04-23-2008, 09:08 AM - Apple buys PA Semi. (http://www.sysopt.com/forum/showpost.php?p=1443330&postcount=2471) With Dan Dobberpuhl, who was a lead designer for the well-regarded Alpha and StrongARM microprocessors developed by Digital Equipment in the 1990s.http://farm3.static.flickr.com/2037/1865501637_4f56d83fde.jpg
brought to you by herosrest - i-moron!____;)_________
herosrest
03-28-2009, 10:19 PM
The only, one and only, true problem that exists is.........................
'Mark to market' risk assessments are suicide.
..
herosrest
03-29-2009, 05:42 AM
MARK TO MARKET' DEVALUES TOMORROW AND STEALS THE FUTURE.
IT IS TOO SIMPLE AN ENTERPRISE FOR PROFITEERS TO IGNORE!
IT IS DEVALUATION OF ENTERPRISE, A ROBBERY THAT IS DENIED TO THE DEATH.
TAKE, TAKE, TAKE until nothing is left. Time for the grown ups to get serious with the lunatics.
It is an enduring battle of interests!
herosrest
03-29-2009, 02:47 PM
Here's an article on Hedge Fund losses as they attempted to profit from market business.
Volkswagen shares halve (http://www.dailymail.co.uk/news/article-1081442/Volkswagen-shares-halve-Porsches-12-6bn-sting-costs-bungling-hedge-funds-billions.html)
But. Why should anyone care, even bat an eye lid. The funds trading produces nothing but paper profit and is predatory, VW produces real wealth, was defended and survived. The issue is a no brainer.
The Hedge Funds were asset stripping. That is not ok. OK.
France is threatening G20 walkout (http://news.bbc.co.uk/1/hi/business/7974190.stm) France will walk away from this week's G20 summit if its demands for stricter financial regulation are not met, the finance minister has told the BBC. Christine Lagarde told Hardtalk that President Nicolas Sarkozy would not sign any agreement if he felt "the deliverables are not there". Strengthening financial regulation will be one of the key issues at the G20. France wants a stronger global financial regulator than the US and the UK would like.
It will never be acceptable, for significant and good reason to regulate markets to universal satisfaction. Self Regulation is an effective and workable practise which will mature. It is Prime significance that Government and administrations know and understand the transfer and distribution of funds. That concept cannot be dismissed. Individuals or Business avoiding tax or disclosure should be presumed in 'guilt'. For what other reason is there to avoid disclosure, other than breaking laws. A generous or even neutral tax stance is worthwhile in order simply to measure and understand what is occuring. Those with nothing to hide have nothing to fear... how often is that argument trotted out. It's quite true though.
All Financial trading data, All, private and public - religiously declared at day 1 in total disclosure to a single entity that records and monitors trade. Encompassing 'duty' to declare all dealings. A real time, global trade, DATA exchange. Failure to comply = the monopoly game default.
http://1.bp.blogspot.com/_rzJHDdHabLw/R55fHZvLHHI/AAAAAAAAA00/TRLFFn_u_lg/s400/gotojail.gif
Stop idolising and being intimidated by Traders. The 'con' is what they do. For huge reward!
They manipulate. It is first nature.
Real time, global trade, DATA exchange. CLICK (http://www.sysopt.com/forum/showpost.php?p=1469991&postcount=7)
herosrest
04-03-2009, 10:02 AM
The bulls came out in March.
http://newsimg.bbc.co.uk/media/images/45630000/jpg/_45630563_001029379-1.jpg (http://news.bbc.co.uk/1/hi/business/7981018.stm)
The bears still swipe the honey.
Profit from finance now though is a dirty word! The gravy train must end!
"The optimism comes from a sense that the banks are restructuring and finally taking action. But we are about to see another wave of dividend cuts in the market as corporates adjust their earnings downwards". ______"They won't get any traction until there is more liquidity in the system. All the business people I talk to are complaining of the same old problems: Lines of credit being cut and rates going up, and until that changes there won't be a proper recovery.
Now the penny has to DROP with Finance............. The gravy train is OVER. Banks and Finance are inefficient and grossly over value service and costs which are passed on. If these numbers are not reduced to equitable rates - there is no reason on earth why Government should not simply create single national banks run on efficient low cost business principles and benefit all from the scale of business. Financial costs must fall, through the floor and with them interest rates. Billions upon Billions at 0.5% interest............. Banks are having another laugh.
Oi - Mr Bank CEO........ still not getting it - are you. You are the servant and very easily replaced by a Civil one.
CHEAP CREDIT! MATE.
For customers, not your profits.
Banks are a service industry, middlemen with bulging pockets, time to stop taking the pi55. Please.
Vanish tomorrow - no-one will bat an eyelid.
This is not a recession!Every senior business officer understands - EARNINGS PER SHARE, ok. The lot of them. Every single one.
The latest consensus of industry analysts is that the S&P 500 companies earned on average $12.26 per share on an operating basis during the January-March period.
The average was $16.62 per share a year ago and $22.39 in the 2007 first quarter.
"Since the third quarter of 2007, the analysts' consensus estimate at the beginning of each earnings season was too high compared to the actual aggregate number reported by the companies,'' said analysts at Yardeni Research.
"So, it is likely that the analysts may be too high again.''
Also hanging on the market were reports that a well-known financial analyst whose departure from Deutsche Bank to join Calyon Securities was announced today - had assigned an underweight rating to the banking sector on a bleak outlook for loan losses, analysts at Charles Schwab & Co said.
An analyst with Calyon Securities and former economist with Deutsche Bank AG, told business news channel CNBC that total industry losses related to the US mortgage crisis could exceed those of the Great Depression by the end of 2010.
But Shorty wasn't worried
There was a smile upon his face
'Cause old Lucy had fixed the race
And just like that old story
about the turtle and the hare, you know that thing
when Danny crossed over the finish line
he found Shorty waiting there
New rules coming for short-selling. (http://www.marketwatch.com/video/asset/new-rules-coming-short-selling/52DB9D86-89F0-4B99-A109-A7991BC4C9B8) .... SEC OKs effort to limit short sales (http://www.marketwatch.com/news/story/sec-launches-effort-limit-short/story.aspx?guid=%7B3E67524F%2D203E%2D4A45%2DAE26%2 DD9CECE312796%7D&dist=morenews_ts) .... A Boring Earnings Season With Bogus Forecasts (http://247wallst.com/2009/04/08/a-boring-earnings-season-with-bogus-forecasts/)
http://image.maniadb.com/images/album/180/180940_1_f.jpg (http://www.rollingstonesnet.com/UnderFaces.html)
Holy COW (http://web.rollins.edu/~jdgutierrez/images/bull.jpg)
Business does not know what it is doing. Finance Business hasn't even got a clue and.....
Politicians wouldn't know facts or truth if it was handed to them in golden balls.
The International Monetary Funds new estimate of total credit losses on US assets grew to about $2,800bn in its Global Financial Stability report. These numbers are probably 30% on the low side. Isn't 30% kinda the new black. :p
Record falls in net worth of US citizens (http://www.ft.com/cms/s/0/ba0da31c-0f61-11de-ba10-0000779fd2ac,dwp_uuid=b8efc2ae-d98d-11dc-bd4d-0000779fd2ac.html) - The net worth of US households plunged 18 per cent last year as the housing market crisis evolved into a deep economic recession, stripping Americans of wealth at a record pace.
Household net worth declined by 9 per cent in the final quarter, according to the Federal Reserve. They were the biggest drops since the Fed began tracking in 1946. The $5,100bn quarterly decline was worse than economists expected and contributed to a loss of $11,200bn in 2008.
The fifth consecutive quarterly fall nearly matched the size of the US economy, which stood at $14,200bn in the fourth quarter. Last year was the first time that household wealth shrank since 2002.
“It’s a pretty stunning drop,” said Mike Englund, economist at Action Economics. “The decline in wealth in the fourth quarter was spectacular.”
The collapse of the housing market has sapped household net worth, which measures the difference between the value of assets and liabilities. According to Michael Feroli, economist at JPMorgan Chase, the closely watched wealth-to-income ratio for the household sector is now at its lowest level since 1995.
Falling home values have eroded the “wealth effect” felt as the real estate bubble began to inflate and boost consumer spending. US homeowners’ equity as a percentage of the value of their homes dropped to 43 per cent in the fourth quarter, down from 58.5 per cent just three years earlier.
“With home prices falling and the mortgage market seizing up, equity extraction from housing plunged in 2008,” noted John Ryding and Conrad DeQuadros, economists at RDQ Economics, in a note to clients.
According to the latest Case-Shiller house price index, home values declined by 18.5 per cent last year, the sharpest drop since the measure started 21 years ago. Prices have now tumbled to levels last seen during the third quarter of 2003 and have fallen by 26.7 per cent since the US housing market peaked in July 2006.
But the impact of falling home prices was surpassed last quarter by the declining value of financial assets, which represent a much larger portion of household wealth. Equity markets have fallen to 12-year lows in the last month and economists predict that US consumers could lose another $2,500bn in wealth this year.
US trade gap shrinks to lowest in six years (http://www.ft.com/cms/s/0/17bb3b20-0fc9-11de-a8ae-0000779fd2ac,dwp_uuid=b8efc2ae-d98d-11dc-bd4d-0000779fd2ac.html) Following years of concern that America’s trade deficit was unsustainably high and could spark a dollar crisis, the fact it is narrowing is seen as one bright spot among the country’s raft of problems. *** Think!! again
However, with the rest of the world also suffering, demand for American goods is falling fast, which is bad news for many US businesses. Exports dropped by 5.7 per cent in January, the lowest level since September 2006, with sales of American-made cars plunging. *** Think!! again - It is not the trade gap that is significant. It is the actual VOLUME of trading that should be of PRIME interest. The numbers are startling. DISASTER.
Germany warns on ‘crisis after crisis’ (http://www.ft.com/cms/s/538ce910-2779-11de-9b77-00144feabdc0,Authorised=false.html?_i_location=htt p%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F538ce910-2779-11de-9b77-00144feabdc0.html&_i_referer=) Anyone not taking note of German economic analysis should just leave the planet and return to which ever galaxy they visited from.
No economy, ever, during the entire human history, survived a 30% devaluation. The devaluation is a major conundrum that defies logic. Deflation is not the problem. Price is the problem. Finance was over priced, that will remain so until someone kicks the people profiteering from finance in the nuts and locks a few of them up. They are rip off merchants. They sell Rip-Offs with a smug grin. The 30% devaluation is a nightmare scenario BECAUSE............... IT FEEDS FROM ITS SELF. IT IS ITS OWN FUEL - AND IT WILL DEVALUE AGAIN BY 30% AND DO IT IN 30% LESS TIME.
ALL ECONOMIC THEORY IS BASED ON A SINGLE PREMISE. A SINGLE UNDERLYING ASSUMPTION - GROWTH. NO MATTER NOW HOW WELL SOME MAY DO - OVERALL THAT 30% DEVALUATION DURING 18 MONTHS IS NOW COMPLETING AND BEGINNING ITS REPEAT WHICH WILL TAKE 13 MONTHS. THE WRONG MINDSETS ARE AT PLAY.
herosrest
04-12-2009, 02:40 PM
THE ENTIRE ECONOMIC ME!SS CAN BE TURNED AROUND IN THE SNAP OF FINGERS.......... AS THE VAST ENTIRETY OF PEOPLE KNOW - THIEVES ARE...................... STUPID. EVEN THE BRILLIANT ONES.
THEY IGNORE THE RISKS. WHAT IS THIS ENTIRE ME!ss ABOUT....... risk, i believe. :rolleyes: Wake UP
Risk is not the issue, nor was it ever. Risks consequences and their avoidance caused all the problems.
Conmen and their paid up mates at work..
The point behind 'this' post is this - How much total blarney has been heard for the last 18 months about RISK - yes........... risk. Here we go again.
http://tbn0.google.com/images?q=tbn:nsv0mzFuJfN_zM:http://elitecustomsigns.com/images/31012.jpg (http://en.wikipedia.org/wiki/Rules_of_Acquisition)__________http://upload.wikimedia.org/wikipedia/commons/thumb/c/cc/Myron_Scholes_2008_in_Lindau.png/200px-Myron_Scholes_2008_in_Lindau.png (http://en.wikipedia.org/wiki/Myron_Scholes)____http://www.anderson-online.co.uk/lions2009/quark.jpg (http://en.wikipedia.org/wiki/Ferengi)Modern option pricing techniques are often considered among the most mathematically complex of all applied areas of finance. Financial analysts have reached the point where they are able to calculate, with alarming accuracy, the value of a stock option. Most of the models and techniques employeed by today's analysts are rooted in a model developed by Fischer Black and Myron Scholes in 1973. This paper examines the evolution of option pricing models leading up to and beyond Black and Scholes' model.
The normality assumption of the Black–Scholes model does not capture extreme movements such as stock market crashes.
http://upload.wikimedia.org/math/8/1/b/81b3baf525f3d5f079cdb868f7c1f231.png (http://en.wikipedia.org/wiki/Black-Scholes)______http://upload.wikimedia.org/math/2/e/d/2ed0a9f60ecc42f89f4bbac554af52e3.png (http://en.wikipedia.org/wiki/Short_selling)
Guess which banks - some recipients of billions of dollars in TARP funds - have been buying, in the private secondary market, AAA-rated "toxic" mortgage bonds for prices as low as 60 cents on the dollar? That's right, folks, it's JPMorgan Chase (JPM), Wells Fargo (WFC), and (drum roll please) Citigroup (C), the latter of which just posted a 1Q loss of just under $1 billion. One mortgage manager who works for a REIT that also is a buyer said the AAA-rated securities are being scooped up at bargain basement prices.
the sound of banks adding to their mortgage portfolios is a bit caustic - sort of like a gambler doubling down to get even. Problem is that the banks have the vig to pay to the government for the borrowed funds and there's no a lot of evidence that 60 cents on the dollar is a good price right now. There's been little activity in the secondary mortgage market with wide bid-ask spreads. Additionally, several large investment shops seemed to indicate that prices could/should get down to 40
The point behind 'this' post is this - How much total blarney has been heard for the last 18 months about RISK - yes........... risk. Here we go again. Followed by some reasoned thought...... when this goes pear shaped - there are no vigins left. Everyone, Government, Business, administration and........regulators will be digging foxholes because there simply are no excuses left.
No one, anywhere, alive or dead, knows how the next 6 months are going to pan out. The best, experienced knowledge around, the market place its self, simply DOES NOT KNOW how things are panning out. There is no joined up thinking - going on.
werz
04-19-2009, 02:12 PM
The oracles predicts that the mother of all crashes will start in around 32 days, and the markets and dollar will keep falling until it reaches 2500? by the end of the year, anyway, a very low number compared with this time last year, and about one third of it's present level.
Then the people who organised the crash will come in and buy companies and stock for ten cents in the dollar, and any workers that can get a job, will be exploited mercilessly.
herosrest
04-19-2009, 02:20 PM
T'wil be interesting watching all the military hardware go into mothball.
werz
04-19-2009, 06:39 PM
T'wil be interesting watching all the military hardware go into mothball.
Funny you should say that....
http://www.creators.com/opinion/pat-buchanan/why-europe-won-t-fight.html
Were the United States, in exasperation, to tell Europe, "We are pulling out of NATO, shutting down our bases and bringing our troops home because we are weary of doing all the heavy lifting, all the fighting and dying for freedom," what would we do after we had departed and come home?
What would our foreign policy be?
What would be the need for our vaunted military-industrial complex, all those carriers, subs, tanks, and thousands of fighter planes and scores of bombers? What would happen to all the transatlantic conferences on NATO, all the think tanks here and in Europe devoted to allied security issues?
But it'll never happen.
just like Uncle Sam. We can't give up NATO because, if we do, we would no longer be the "indispensable nation," the leader of the Free World.
werz
04-19-2009, 06:59 PM
What to do with NATO.
http://www.atimes.com/atimes/South_Asia/KD04Df01.html
To say that NATO - a North Atlantic body - is overextended is an understatement. Members Romania and Bulgaria are nowhere near the Atlantic Ocean. Hungary, the Czech Republic and Slovakia are landlocked. In Central Asia, Afghanistan (or at least the non-Taliban-controlled parts of it) is de facto occupied by NATO. Mega-bases such as Ramstein (Germany), Aviano (Italy) and Incirlik (Turkey) now have a counterpart halfway around the world in Bagram (Afghanistan).
It should have ended here.
NATO should have been dead immediately after the fall of the enemy it was created to fight - the Soviet Union. Instead, NATO had a ball during the 1990s, when Russia was down and out and Russian president Boris Yeltsin spent more time filling up his vodka glass than worrying about geopolitics.
And it'll end in recriminations.
The US, supported by NATO, was the midwife of a new incarnation of "Islamic fundamentalism" which should, as it did, get rid of the Soviets in Afghanistan and in the former, energy-rich Soviet republics. The fact that, millions of dead and millions of displaced people later, NATO is now asking for Russian help so as not be stranded in Afghanistan is just another bitter irony of AfPak history, and certainly not the last.
werz
04-19-2009, 07:03 PM
What the Europeans should have said to Obama, when he went there asking for more troops...
"F___ Off and get your own Foreign Legion. We're busy."
herosrest
04-24-2009, 07:03 AM
Yey!!! folks - 53 MONTHS AGO - 11-30-2004, 05:27 PM to be precise - I identified the problems ahead.
I did, i did, idid. :cool:
So................ wot will occur................ Well
Banks are factually, legally and in every sense of world economics - Bankrupt - entities which function because no-one wants their money at the same time. So the accountants get to play with l0ads and l0ads and 00dles of zeros in ledgers and computer screens and margins. The bankers can make profits and smile smug, clever smiles because they never need what they call capital AND are able to live from income - which is the money paid into bank accounts by everyone else.
The current generations of bankers got very greedy and took more and more and more of the money paid into accounts for themselves. They forgot they operate under TRUST - all bankers will therefore go to prison shortly because they have conned every one. That's right - Bankers are con men, grifters and they conned everyone to believe that the money in banks belongs to banks and not the people who pay into the accounts. Governments were conned to believe that the money belongs to the banks. Now your money is guaranteed by government......... WHo needs the BANK's. They are expensive, **** taking DoDo's who think 1+1=30. There will soon be no private banks - all of them, everyone of them will fail - they take to much from the current earnings that fund them. Yup - the easiest, most profitable business on earth and....................... they screwed it up so completely that beyond doubt, it will shortly be obvious beyond any doubt that banks steal peoples money and simply destroy it. They thieve and steal with simple little rules called accounting.
FREE BANKS FOR FREE PEOPLE (http://news.bbc.co.uk/1/hi/england/essex/8015743.stm)
BE FREE, BE RICH - START YOUR OWN BANK. IT'S SO EASY - DO IT ON LINE.
WE ARE ALL BANKerS - CREDIT WHERE CREDIT IS DUE.
11-30-2004, 05:27 PM
Gather up all your cash. Gather up your faith and trust.
Open your own Bank.
Invest all your cash in your banks savings accounts, (we promise to pay the bearer' etc.. - NOW lend those savings to one and all for interest.
Instantly, your savings are doubled and earning a return in interest. At least that is what your accounts will tell ya. Now u can go live on credit because you are twice as wealthy.
Clever bloke, that lad that started the Bank of England.:)How to Start a Bank (http://www.ehow.com/how_2062432_start-bank.html)
The banking industry produces some of the most lucrative profit margins around. If you are interested in starting your own bank then you need to be prepared for the fund-raising, organizing and form filing required to set one up. These steps will help make the process easier.
http://www.philipcrammond.com/labradoodle/images/links_and_photos/union_jack_animated.gifhttp://alphaville.ftdata.co.uk/lib/inc/getfile/5731.jpg (http://online.wsj.com/article/SB123851422477774045.html?mod=sphere_ts&mod=sphere_wd)
herosrest
04-24-2009, 07:05 PM
A larf......... god wonks we need one. Bubblied the squidge on that one.. my dab:rolleyes: wonks=knows :D
Heidi is the proprietor of a bar in Detroit . In order to increase sales, she decides to allow her loyal customers - most of whom are unemployed alcoholics - to drink now but pay later. She keeps track of the drinks consumed on a ledger (thereby granting the customers loans).
Word gets around about Heidi's drink now pay later marketing strategy and as a result, increasing numbers of customers flood into Heidi's bar and soon she has the largest sale volume for any bar in Detroit.
By providing her customers' freedom from immediate payment demands, Heidi gets no resistance when she substantially increases her prices for wine and beer, the most consumed beverages. Her sales volume increases massively.
A young and dynamic vice-president at the local bank recognizes these customer debts as valuable future assets and increases Heidi's borrowing limit. He sees no reason for undue concern since he has the debts of the alcoholics as collateral. At the bank's corporate headquarters, expert traders transform these customer loans into DRINKBONDS, ALKIBONDS and PUKEBONDS. These securities are then traded on security markets worldwide. Naive investors don't really understand the securities being sold to them as AAA secured bonds are really the debts of unemployed alcoholics.
Nevertheless, their prices continuously climb, and the securities become the top-selling items for some of the nation's leading brokerage houses. One day, although the bond prices are still climbing, a risk manager at the bank (subsequently fired due his negativity), decides that the time has come to demand payment on the debts incurred by the drinkers at Heidi's bar.
Heidi demands payment from her alcoholic patrons, but being unemployed they cannot pay back their drinking debts. Therefore, Heidi cannot fulfill her loan obligations and claims bankruptcy.
DRINKBOND and ALKIBOND drop in price by 90%. PUKEBOND performs better, stabilizing in price after dropping by 80%. The decreased bond asset value destroys the banks liquidity and prevents it from issuing new loans.
The suppliers of Heidi's bar, having granted her generous payment extensions and having invested in the securities are faced with writing off her debt and losing over 80% on her bonds. Her wine supplier claims bankruptcy, her beer supplier is taken over by a competitor, who immediately closes the local plant and lays off 50 workers.
The bank and brokerage houses are saved by the Government following dramatic round-the-clock negotiations by leaders from both political parties. The funds required for this bailout are obtained by a tax levied on employed middle-class non-drinkers. :p
This is the cover up version of what has gone on - actually greed by investors for massive returns on equity and investment caused all these problems. Shadow banking - over priced loans - inflated and unreal returns..
This is a great dialogue - really interesting http://www.npr.org/blogs/money/index.html?ps=ib
ps - this isn't now and never was anti US stuff. Ever. Bankers and accountants do this shidt all over the world. They care only about their big fat bonus. Share holders are as bad. These are evil people operating without supervision and regulation. It's all a game to them. One they can't lose.
herosrest
04-24-2009, 07:29 PM
A larf......... god wonks we need one. Bubblied the squidge on that one.. my dab:rolleyes: wonks=knows :D
...... ......Nevertheless, their prices continuously climb, and the securities become the top-selling items for some of the nation's leading brokerage houses. One day, although the bond prices are still climbing, a risk manager at the bank (subsequently fired due his negativity (addendum - For risk manager think FAS 157)), decides that the time has come to demand payment on the debts incurred by the drinkers at Heidi's bar.
Heidi demands payment from her alcoholic patrons, but being unemployed they cannot pay back their drinking debts. Therefore, Heidi cannot fulfill her loan obligations and claims bankruptcy.
DRINKBOND and ALKIBOND drop in price by 90%. PUKEBOND performs better, stabilizing in price after dropping by 80%. The decreased bond asset value destroys the banks liquidity and prevents it from issuing new loans.
The suppliers of Heidi's bar, blah blah blah......
This is the cover up version of what has gone on - actually greed by investors for massive returns on equity and investment caused all these problems. Shadow banking - over priced loans - inflated and unreal returns..
...
herosrest
04-25-2009, 07:26 PM
Now that is just,.......... takin the pi55! :r (http://www.youtube.com/watch?v=U0-8IUwsQts&feature=related)
herosrest
04-28-2009, 01:32 PM
Government plan to deal with insolvent pension funds (http://www.irishtimes.com/newspaper/ireland/2009/0428/1224245519116.html)
Can you feel it...................... not yet! http://tbn0.google.com/images?q=tbn:RAds2J-yGAuudM:http://image61.webshots.com/161/3/49/27/494334927JHmqMF_ph.jpg
herosrest
05-06-2009, 06:57 AM
Wednesday, May 06 08:41:04
Bank of America will need as much as USD34bn in additional capital, according to a source quoted by Reuters.
herosrest
05-06-2009, 03:26 PM
Thomas Lauria, a lawyer for the dissidents, told [Judge] Gonzalez yesterday that the group has been exposed to “undue reputational damage, and threats of violence.” He said criticism of the group was exceptional, because it came from U.S. President Barack Obama.
Hedge Funds That Bankrupted Chrysler Are Terrified Of Internet Commenters (http://wonkette.com/408368/hedge-funds-that-bankrupted-chrysler-are-terrified-of-internet-commenters)
Can you feel it yet!
http://tbn0.google.com/images?q=tbn:RAds2J-yGAuudM:http://image61.webshots.com/161/3/49/27/494334927JHmqMF_ph.jpg
werz
05-06-2009, 08:46 PM
Waterboarding is too good for the hedge fund vermin.
PROFITING FROM INSURANCE or credit derivative counterparty arrangements
- REGARDLESS OF CONTRACT TERMS and small print and side notes -
is INSURANCE FRAUD.
The defaulting loan holder is being DEFRAUDED.
Financials who think they have problems now - haven't got a clue as to what is just around the corner, after they ALL land in jail.
herosrest
05-11-2009, 10:10 AM
How ever many ways it is presented, the customer, (borrower) always pays. They are being defrauded as simply as if people were reaching into their pockets and taking money. No way around it. The whole thing is a scam of huge proportion. Oh how clever this generation of financial genii are.
herosrest
05-11-2009, 10:50 AM
They do not turn out Cum Laude (http://en.wikipedia.org/wiki/Latin_honors) any more. These days it is all 'CON Laude' and they graduate with big round red noses.
We may be going to experience a small increase in investment, but they say it'll only be temporary.
It could be ten years before we come out of this slump, if ever, as they refuse to make the changes needed to correct the debt problem.
When will they realise that it's going to require a substantial increase in wages to allow working people to get out of debt and begin spending us out of the deep recession that the gross inequality of incomes between the rich and poor has caused.
There's something wrong with working people who support this discrepancy.
herosrest
05-20-2009, 09:19 AM
When it is possible and easy to profit 'massively' from falling prices - what, do you think..... will happen? :confused:
There is nothing honest, decent or worthwhile earning 10,000 per week and jerking of all day over bonus.
They are ill, sick people. ;) Thieves.... even.
herosrest
05-23-2009, 04:44 PM
If, these high failing finance people - did, what they do in the open, face to face with affected customers and investors... well, they would be repeatedly hospitalised. Or dead!
http://new.rejesus.co.uk/images/area_uploads/timeline/cross.jpg
But no, stick 'em in cosy, cloistered rooms, away from consequence and reality
and hey presto!
God's gift - of course they believe they are worth it.
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