From LaVern F. Isely
Monroe
Neither political party seems to want to control the hedge fund dealers or the growing $600 trillion toxic derivative market that is worldwide and now affecting Greece and others. Time magazine of May 3 says "Five largest banks control 97 percent of the domestic derivative market" which 18 years ago was only $5 trillion and unregulated, and still is. The attitude of the hedge fund dealers really shows up in the book "The Big Short: Inside the Doomsday Machine" by Michael Lewis. The following is an excerpt from page 224: "Most of 2006 and early 2007 Dr. Michael Burry had experienced as a private nightmare. In an e-mail, he wrote, 'The partners closest to me tend to ultimately hate me ... This business kills a part of life that is pretty essential. The thing is, I haven't identified what it kills. But it is something vital that is dead inside of me. I can feel it.' As his interest in financial markets seeped out of him, he bought his first guitar. It was strange: He couldn't play the guitar and had no talent for it. He didn't even want to play the guitar. He just needed to learn all about the sorts of wood used to make guitars, and to buy guitars and tubes and amps. He just needed to ... know everything there was to know about guitars. He'd picked an intelligent moment for the death of his interest. It was the moment at which the end was written: the moment at which there was nothing left to prevent. Six months from that moment, the International Monetary Fund would put losses on U.S. originated subprime-related assets at a trllion dollars. One trillion dollars in losses had been created by American financiers, out of whole cloth, and embedded in the American financial system. Each Wall Street firm held some share of those losses, and could do nothing to avoid them. No Wall Street firm would be able to extricate itself, as there were no longer any buyers. It was as if bombs of differing sizes had been placed in virtually every major Western financial institution. The fuses had been lit and could not be extinguished. All that remained was to observe the speed of the spark, and the size of the explosions." Neither political party or country can go in debt forever. They're going to have to learn to pay their bills with real assets. It could be gold, silver or land and the most important are the family farmers that run it.
Monroe
Neither political party seems to want to control the hedge fund dealers or the growing $600 trillion toxic derivative market that is worldwide and now affecting Greece and others. Time magazine of May 3 says "Five largest banks control 97 percent of the domestic derivative market" which 18 years ago was only $5 trillion and unregulated, and still is. The attitude of the hedge fund dealers really shows up in the book "The Big Short: Inside the Doomsday Machine" by Michael Lewis. The following is an excerpt from page 224: "Most of 2006 and early 2007 Dr. Michael Burry had experienced as a private nightmare. In an e-mail, he wrote, 'The partners closest to me tend to ultimately hate me ... This business kills a part of life that is pretty essential. The thing is, I haven't identified what it kills. But it is something vital that is dead inside of me. I can feel it.' As his interest in financial markets seeped out of him, he bought his first guitar. It was strange: He couldn't play the guitar and had no talent for it. He didn't even want to play the guitar. He just needed to learn all about the sorts of wood used to make guitars, and to buy guitars and tubes and amps. He just needed to ... know everything there was to know about guitars. He'd picked an intelligent moment for the death of his interest. It was the moment at which the end was written: the moment at which there was nothing left to prevent. Six months from that moment, the International Monetary Fund would put losses on U.S. originated subprime-related assets at a trllion dollars. One trillion dollars in losses had been created by American financiers, out of whole cloth, and embedded in the American financial system. Each Wall Street firm held some share of those losses, and could do nothing to avoid them. No Wall Street firm would be able to extricate itself, as there were no longer any buyers. It was as if bombs of differing sizes had been placed in virtually every major Western financial institution. The fuses had been lit and could not be extinguished. All that remained was to observe the speed of the spark, and the size of the explosions." Neither political party or country can go in debt forever. They're going to have to learn to pay their bills with real assets. It could be gold, silver or land and the most important are the family farmers that run it.
