There is an old Johnny Cash song... "down down down, the ring of fire... down down down, the flames are getting higher... down down down, the ring of fire."
For our technical traders, you are correct... there is a new pipe and we are in the pipe 5x5 for now.
Wednesday, November 2, 2011
US$ Leverage - US Banks and Institutions (the Insti's) - EUR/USD
Now don't forget... a US bank will nearly not lend a US citizen home-owner and/or home-buyer any USD unless the bank's risk is about 1:1 (50% down payment for the US citizen.)
But, lending USD in a very high risk situation leading to an entire Euro-Zone 17 nation default? No problem, 40:1 is fine for a US bank(!!??)
That ratio is the same as if a home buyer wanted to make a down payment of $10,000 for a bank-financed $400,000 home. Please ask your local banker if that ratio is OK... hahahahahahahahahahahahahahaha.
If you do not believe these "simple" minded bankers should be in jail, you are a true and honorable pacifist(!)
But, lending USD in a very high risk situation leading to an entire Euro-Zone 17 nation default? No problem, 40:1 is fine for a US bank(!!??)
That ratio is the same as if a home buyer wanted to make a down payment of $10,000 for a bank-financed $400,000 home. Please ask your local banker if that ratio is OK... hahahahahahahahahahahahahahaha.
If you do not believe these "simple" minded bankers should be in jail, you are a true and honorable pacifist(!)
Tutorial - MF Global and BAC/CHASE Sized Banks - 40:1 Losses
Ah... ummm... where exactly did a co. like MF Global get the funds for a 40:1 leverage?
Ah... well... someone(s) with lots of cash must have lent (lended?) it to them.
Now who could that be and when will it "come to light?"
You folks already know, we don't even need to say.
There is more than one 'level' in the disguised Euro funds from US institutions as we have said in a previous blog entry. You can scroll down and see the facts.
Ah... well... someone(s) with lots of cash must have lent (lended?) it to them.
Now who could that be and when will it "come to light?"
You folks already know, we don't even need to say.
There is more than one 'level' in the disguised Euro funds from US institutions as we have said in a previous blog entry. You can scroll down and see the facts.
Price of Gold - in USD
If you haven't seen our Fibonacci estimate of the soon-to-be price of gold, you should scroll down and read it.
We now have alot more than a slight hint that the FED intends to print more USD...!
Don't get caught watching the paint dry.
We now have alot more than a slight hint that the FED intends to print more USD...!
Don't get caught watching the paint dry.
FOMC - New FED Outline includes MBS
Current POR is now obvious after today's events:
If we need to dump the USD at any cost because of a Euro collapse, then we will print as much money as it takes. We will call it an MBS-purchase program in order to confuse everybody.
In that way, the big banks will be happy and a "little" inflation never hurt anyone(!) Even the Republicans might be on-board once they realize the banks may otherwise all go down.
But the Fed cannot do anything until December at the earliest.
The only way out of the Euro-zone problem is to massively run printing presses all around the planet as we have said...
These facts tell us how to make money and not to lose it instead.
If we need to dump the USD at any cost because of a Euro collapse, then we will print as much money as it takes. We will call it an MBS-purchase program in order to confuse everybody.
In that way, the big banks will be happy and a "little" inflation never hurt anyone(!) Even the Republicans might be on-board once they realize the banks may otherwise all go down.
But the Fed cannot do anything until December at the earliest.
The only way out of the Euro-zone problem is to massively run printing presses all around the planet as we have said...
These facts tell us how to make money and not to lose it instead.
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