S&P 500 Futures 1493.75
12.00Euro/USD 1.3150
.00210Nikkei 225 16,277.10
537.27 (3.20%)Asian Markets
This week is shaping up to be one of the most volatile weeks we have had all year. It has come to the point where the average investor is starting to wonder why they should believe the HB&B's (Humongous Banks and Brokers) anymore.
Fingers will start to be pointed and capitol hill is likely to start calling people to testify in the coming weeks and months. When Enron collapsed it was a few billion dollars ($70 billion at its peak). We are now talking about many orders of magnitude greater. Some estimate $300-$400 trillion dollars (with a T) of OTC derivatives outstanding. I know what you are thinking. Dollars are not worth much any more in the world market. Isn't that just a few hundred euros?
Nope, "that's roughly 8.5 times the world's gross domestic product" -Tim Colebatch
The same sleazy tricks are being played with balance sheets, but this time they are allowed to get away with it.
"So much for the worst of this crisis being over. Just a few weeks back, there was some optimism building in the marketplace that the end of this bumpy road was near. Those upbeat views now look like they were just wishful thinking.
Why else would a consortium of banks — including Citigroup, JPMorgan Chase and Bank of America — be uniting with a plan to keep the housing-related debt crisis from worsening. If they thought conditions in the credit market were about to improve, would they be gathering for this group hug?
The banks have proposed creating a fund that will buy around $100 billion (€70 billion) in debt from structured investment vehicles, or SIVs, in an attempt to break the logjam in the market for short-term debt instruments that hold mortgage-related assets."
Below is a short video of who is partially responsible for this mess
No comments:
Post a Comment