Culture of Life Financial Rants!

[Joanne98]

FDIC DATA ABOUT COLLAPSING BANKING SYSTEM

Today, we visit the FDIC to look at the latest charts and graphs they publish. And we visit the Nikkei news in Japan to get more graphs. This is all about understanding why the biggest, most international banking/investment systems went under so suddenly and so totally. Throwing good money after bad is stupid. Rubin and Greenspan don’t have a clue…their own words….as to what is going on. So maybe we can clue them in!


FDIC Graphs Show the Extent of the Financial Crisis - Seeking Alpha
http://emsnews2.wordpress.com/2008/11/30/fdic-data-about-collapsing-banking-system/

PULLING DERIVATIVE BEAST OUT OF THE HAT

The central bankers in all the major economies are frantic to get rid of the Derivatives Beast. So they resort to various tricks and schemes. But as we see in the Bullwinkle videos below, every time they reach into their top hats to pull out more loans, all they get is the Derivatives Beast. They never give up.

So they are now simply TRANSFERRING this ugly monster to the taxpayer’s obligations to pay! Isn’t that a cute magic trick? Instead of arresting the creators of this monster, we get to tame it by our lonesomes. Isn’t this fun? Heck, it is as much fun as fixing economic problems via wars.

-A derivative is financial contract whose value is derived from something else, such as the value of a stock or bond, referred

http://emsnews2.wordpress.com/2008/12/01/pulling-derivative-beast-out-of-the-hat/

ENGLAND’S ETERNAL DEBTS

England is still paying interest on ancient loans from WWI. These loans are INFINITE. They will never vanish. The interest paid has paid off the loans many times over. England has a long history of falling into depressions that sometimes last for more than a generation. Seems that Japan likes to do the same.

So today, we read very old newspapers and talk about very old debts. And how depressions are beloved of coupon clippers and other people who rely on collecting rents and holding bonds.

Hedge Fund Manager Hendry Bets on British Deflation, Buys World War I Debt

(Bloomberg) — Hugh Hendry, who oversees about $500 million as co-founder of Ecletica Asset Management in London, said he’s buying World War I debt on the bet the U.K. is due for its worst round of deflation since the Great Depression.

The gilts, known as perpetuals because they have no maturity date, have a coupon of 3.5 percent compared with the U.K.’s 4.5 percent inflation rate. Investors hold about 1.9 billion pounds ($2.9 billion) of the securities that still pay interest 90 years after the end of the Great War, according to the U.K.’s Debt Management Office.

“If you have a deflationary shock, the only instrument that will perform will be government debt,” said Hendry, 39, whose Eclectica Fund returned 38 percent this year, putting it in the top 1 percent of 1,817 funds tracked by Bloomberg. “Inflation is going to be back some day. But forget the next 12 years; it’s the next 12 months that matter.”

This is how welfare systems really work: coupon clippers who get their hands on government debt that is NEVER paid off! If one has enough of these debts, one can sit back and enjoy life….but ONLY if there is a depression! Here is an extremely old newspaper story from the beginning of the Long Depression:

THE TRADE DEPRESSION IN ENGLAND. - The New York Times December 1, 1878
http://emsnews2.wordpress.com/2008/12/01/englands-eternal-debts/