Protected: 06-08 Crisis – How the Banks Did It – Record 002b – Banks Bundled Bad Debt, Bet Against It and Won

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Protected: 06-08 Crisis – How the Banks Did It – Record 001a – Wall Street Plays Hardball

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NY Times article on the practice of simultaneously selling bad debts and then betting against it

http://www.nytimes.com/2009/12/24/business/24trading.html?em

“The simultaneous selling of securities to customers and shorting them because they believed they were going to default is the most cynical use of credit information that I have ever seen,” said Sylvain R. Raynes, an expert in structured finance at R & R Consulting in New York. “When you buy protection against an event that you have a hand in causing, you are buying fire insurance on someone else’s house and then committing arson.”

“Tolong jelasin masalah resesi dong”

recession-2008(Conversation as of 19 October 2008)

yyyy(9:43:38 PM): btw tlg jelasin masalah resesi dong

yyyy(9:43:43 PM): gw ga ngerti nih hehehe

yyyy(9:43:47 PM): lo kan pasti jago

Dhirosattha (9:44:40 PM): resesi ekonomi scr umum? ato yg sekarang?

yyyy(9:47:25 PM): yg sekarang

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Detroit bailout? Wait, what about free competition? And all this talk about free international trade?

detroit1

November 14, 2008.

The US automakers asked the US government to provide them with a $ 25 Billion bailout. Well, the executives said it’s not a bailout, it’s a loan, to allow the US automakers some breathing space to innovate.

Hogwash. Sorry Obama, I support you for the US presidency, but if the US automakers cannot compete in the commercial world, then they do not deserve to live in the commercial world. Man, i’m kinda confused why the Japanese, Chinese, Indian, and Indonesian trade secretary hasn’t scream bloody unfair competition on the detroit bailout.

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Relation between Vocational & Computer Money and Reps & Dem leadership

ancient-us-moneySo often economy and politics converge. It is political system that makes money, the blood of economy, possible; without a stable system of governing a country, no paper would be able to assume a value beyond its production cost. And it is politician who can make policies that affect the economy through laws, taxes, regulation, levies.

Now, the US have a Democrat president, what will this mean to the economy? Specifically, how will this effect the perceive balance in Wallstreet’s mind between Vocational money and Computer money? And what is the real shift between computer money and vocational money? Click here to understand more about vocational and computer money

If market sentiments could be a guide, this is an estimation on the perception of how such balance will shift:

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We have been talking about the wrong type of oil inventory

By Sendy Filemon, 25 October 2008

When one think about speculating on commodities, products with physical form, one thinks about hoarding.
Popular example in an Asian country would be, rice hoarding, speculators buys rice, hoard it in some warehouse, create supply gap in the market, prices starts increasing, consumer start to perceive the increase in price, consumers join hoarding rice, price gets even higher, then the original speculator release his stock. (For readers who don’t live on such country, please exchange “rice” with any other staple food in your country).

This is how the speculator makes his killing, creating false supply and demand gap, leveraging market sentiment to create a snowball effect, and reap the profit when the snowball gets big enough.
To execute this type of speculation effectively, the speculator would need large amount of capital and physical space.

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