Tag Archives: collapse
Instead of demanding higher wages as profits increased, Americans took easy loans. Without the wages to pay off these loans, they went into default and were packaged into the CDS market. (Credit default swaps are insurance-like contracts that promise to cover losses on certain securities in the event of a default.) They typically apply to municipal bonds, corporate debt and mortgage securities and are sold by banks, hedge funds and others. If bond insurance disappears or becomes too costly, lenders will become even more cautious about making loans, and this could impact everyone from mortgage-seekers to municipalities that need money to fix roads and build schools. THIS IS BAD! Real bad….
NEW YORK (Reuters) – The debt crisis and central bank policy responses have degraded the quality and value of debt markets and signal a “potential breaking point” in the global economy that will “disrupt the “current dollar-based credit system””, PIMCO’s Bill Gross, manager of the world’s largest bond fund, said in his monthly letter to investors….. .
Early in 2010, Goldman Sachs stood accused of worse, when the bank was revealed as one of the architects of the emerging Greek disaster. Not only was it blamed for helping conceal the true state of the country’s finances, but it was accused of eventually betting against its sovereign debt, along with other major banks.
Via: Business Insider:
When JPMorgan first announced that its CIO office had blundered into a huge trading loss, the number was pegged at $2 billion, though the company said it could go higher.
loss later reported to be $3 billion…
$5 billion or more?
The nation’s largest bank has said publicly that its losses on the trades have surpassed $2 billion, and people familiar with the matter have said they could over time reach $5 billion.
But the losses could be even bigger if the company sells its positions into a market that has turned against its positions, some traders say. Improvements in the markets could slice the bank’s losses.
The wrecking ball of hidden inflation and Fed based strategies – food inflation far outpacing overall inflation and eating away at the purchasing power of 46,000,000 Americans on food stamps.
Inflation is already here for working and middle class Americans
Inflation is already hitting the wallets of most Americans. After the liquidity crisis and trillions of dollars infused into the system, inflation is now on an upward march.
On a side note USE CASH purchase a copy of