jal
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There are 100,000 very wealthy people who have a lot to lose with the crash of the markets and the destruction of the financial system.
Since + 60% of N. Americans are one paycheck away from telling their lenders that they can no longer keep sending them money so that they can continue to enjoy their unproductive lifestyle,
Since the majority of the club med people are in the process of letting the banks eat their bad loans
Since a 12% drop in the Spanish market must really really hurt those who were leveraged since they must take that 12% drop a multiple of time
Losing the income to put food on the table is disastrous but the mental shock of losing your “wealth and power” is probably too much for the pampered families of the “rentiers class”to face reality. (Few people have humility)
It therefore, appears that the truth is coming out …
“You cannot squeeze blood out of a stone”
Soon …. stones will be discovered to exist outside of club med.
I disagree!
Our analysis finds that at the end of 2010 the Top 50 private banks alone collectively managed more than $12.1 trillion in cross-border invested assets for private clients, including their trusts and foundations. This is up from $5.4 trillion in 2005, representing an average annual growth rate of more than 16%.
Now you know … that is the primary reason not to let the banks go bankrupt.
The banks need the cash flow from the gov. to hid the fact that most of that $12.1 trillion does not exist.
The ponzi is bigger than you ever imagined.
Imagine if B. Madoff had not confessed and if the gov. had keep supplying him with a cash flow.
hehehe
The number of the global super-rich who have amassed a $21 trillion offshore fortune is fewer than 10 million people. Of these, less than 100,000 people worldwide own $9.8 trillion of wealth held offshore.
What would happen if those 10 million people suddenly were told that their fortunes had been mal invested?
Yep!
HEADS WOULD ROLL.
Bennie will need to print money and send it where it is needed.
Municipalities, districts, states are choking on their debts and cannot pay their workers and give the needed service that they have promised.
Banks are terrified that those level of governments will default and stop the cash flow. They have the ear of Bennie. Bennie will listen if he want to keep the system operating for a while longer.
Its a no brainer …
Buy muni. bonds etc., in exchange for cash to muni., this relieves the munis. of having to pay the bond holders.
The cash flow continues from Bennie and everyone is happy.Just because it hasn’t been done before doesn’t mean that they haven’t figured a way of doing it.
In other words, while we may have an idea of what’s going on, we dismiss it because it doesn’t immediately affect us. And we have hope and faith in the future. Tomorrow will be better. All tomorrows. Every single one of them.
so true … so sad 🙁
Here is the conclusion
VI. Conclusion
We are locked into an unimaginably complex predicament and a system of dependency whose future seems at growing risk. To avoid catastrophe we must prepare for failure.
We are entering a time of great challenge and uncertainty, when the systems, ideas and stories that framed our lives in one world are torn apart, but before new stories and dependencies have had time to evolve. Our challenge is to let go, and go forth.
Our immediate concern is crisis and shock planning. It should now be clear that this is far more extensive than merely focussing on the financial system. It includes how we might move forward if a reversion to current conditions proves impossible. That is we also need
transition planning and preparation. Even while subject to lock-in and the reflexivity trap, this will be most effective if it works from bottom-up as well as top-down.Finally, neither wealth nor geography is a protection. Our evolved co-dependencies mean that we are all in this together.
Does anyone want to discuss the “herd”, “who is the lead cow”
Its a small world.
I guess that if you are not following the lead cow then you are the prey.This fixing has been going on for a long time.
Has one of the “sharks” turned rogue and become a whistleblower?they didn’t have nearly enough equity left in their assets or dischargeable debt to justify paying the lawyers’ fees and court costs associated with a bankruptcy filing. Basically, they have already been squeezed out of so much wealth that they have been priced out of the bankruptcy process. It is really a sad state of affairs
What happens to those people?
Is the next step being hounded and scared by private collectors of debts?
Prison?
But what if QE has been designed as a selective Debt Jubilee? For the banks only.
Yes, that’s right.
There are side effects beside furnishing cash flow for the service of those debts.
Leveraging of that new cash to buy stocks and keep the stock prices high and avoiding a market crash.
The winners are those people who “cashed out” of the stock market and bought assets that are producing real cash flows.
I like the blue curve in the chart.
Its a positive message for the 0.01%.
It says that the wealthy will have access to oil for at less 100 year.That a lot longer than an election cycle.
I’m going to change my definition of of wealthy to someone who does not need to personally expend any energy/cash to keep food on the table.
hehehe!
Now …. even those on welfare can be considered wealthy.Most stimulus to date has been non-inflationary because it merely preserved income streams that already existed.
Yes. If they had not preserved that income stream we would have had the reset.
B. madoff would still be operating if they had preserved his income stream.
:woohoo:
https://www.oftwominds.com/blogjuly12/snapback-stockton7-12.html
Snapback: Stockton, Calif. and All the Cities to Follow (July 6, 2012)
“Government promises to public employees have created “zero-risk” Wonderlands protected from the market forces of risk and consequence. These islands of privilege are snapping back to join the real economy.
Every government entity that reckoned it was moated from the market economy will be snapped back to “discover” risk and consequence. Let’s lay out the dynamic:”Everyone will have to get real.
Way back when … When bush meat was no longer available you had to rely on agricultural surplus to put food on YOUR table.
If you are not involved in the pipeline to make surplus food, you are a NON PRODUCTIVE mouth to feed.
Get real. Your functions might not be as essential as you think.
You are probably a non productive mouth to feed.
===All of the old farts have got to get out more often. (inclusive statement)
I just received the following quote.
“Give a man a gun and he can rob a bank. Give a man a bank and he can rob the world”
Nothing new … so you say.
Now do a search for that phrase.
Young bloggers are even making up pictures to go with the saying.
Yep!
The “Earth Ling” clan are getting a growing awareness
Real life is stranger than fiction. How many people the world over has this Pon Zi demon possessed?!!
Only one clan …
The Earth Ling
jal, have you watched The Ultimate History Lesson (skip the intro if you find it boring)?
No.
I’ll find the time.@ TheTrivium4TW
I seldom take issue with what you say.
However, I must object to you quotations.What Bertrand Russell thought would happen will not happen.
Sexy maids will always be able to have children of the elite.
Since the advent of the web, anyone can access the information that previously was only available to the elite.
Knowledge begets discontent.
(Before 9/11 I used to be very contented. After the financial meltdown, I became a seeker. My glass is now 1/2 full.)
I feel in a “thank you” mood today. I’m sprinkling on comments that are hitting the nail on the head.
My entourage are aware of what is happening, world wide.
Until some of their friends fall off the treadmill, (impossible), and come to them in tears, (unlikely), with their sob stories, (blaming the system, (unlikely)), they will not change their habits or lifestyle.
How can you blame your entourage for not believing you?
They followed the script and are entitled to the rewards and lifestyle for doing the right thing.
Remember, you cannot go to the next valley.
There is no other game in town.I’m just an observer looking in.
===
Taking on trillions of euros in additional debt from Italy and Spain, however, would risk making that hit much harder. So why would Angela go that route? It makes little sense.
There is perhaps one caveat: German banks. But they would be hit no matter what happens. And both they themselves, and Merkel, have now had quite a bit of time to prepare for all possible outcomes. If Angela Merkel is half as smart as she appears to be, she’s ready for about all of them.I would think that the Italian debts and the Spanish debts are already on the books of the German banks.
None of the banking system will survive in its presence form.
There will be deflation and Merkel will not be able to put it off or protect the German banking system.Deception!!!!
Court uphold “Obamacare”
Make the deception better …
Put Palin in charge of the death panel.
If you are having trouble understanding DEFLATION and the wisdom of having cash then take a peek into this news report.
https://www.reuters.com/article/2012/06/26/us-spain-banks-stakes-idUSBRE85P0DJ20120626
Spain formally requested euro zone rescue loans to recapitalize debt-laden former savings banks on Monday, but those who receive funds will be subject to European Union state-aid rules that include selling equity assets.
A flock of “vulture” funds is already watching over the banking sector shakeout in the hope that it will finally deliver a bonanza of distressed company assets at rock bottom prices.Pollyanna!!!!!
Anyone who has been reading and thinking about our financial situation find that they are called “Pollyanna” or worst, when they mention anything to their entourage.
My entourage are aware of the financial situation around the world. They don’t want to talk about it. They just want to go on with their daily activities.
I think that I&S has referred to this as the denial phase.
The AE is discussing the issues that are confronting the world at a higher intellectual level than other blogs and bringing into the discussion other bright minds.
Keep it up!
The two other blogs that are persistently bring out their messages are “The Marker Ticker” and “Zero Hedge”.
For many here, reading about what is happening, is like watching a slow motion disaster.
The governments and primary actors, (we are spectators), are doing this on purpose, (Kicking the can down the road), since they know more than us how bad things are going to get.
“Bad” in this context, means “change”.
There are times that I feel that I have outlived my usefulness and just want to pack my bags and escape to a tranquil, peaceful corner or the earth.
Unlike, during the time of cavemen, the next valley is already occupied so I must stay, try to deal with reality and find acceptable solutions for where I am.For what its worth …
Smile and the world will smile with you.You cannot turn on the TV or the radio without hearing about
“THE EU DEBT PROBLEM”
The implication being that the borrowers are in trouble.
The borrowers are not in trouble they cannot pay back the loans and the collateral for those loans are non existent.
The truth is that the lenders are in trouble for making loans that they should have refused to do if they had done their due diligence.
The real headlines should be
“THE EU BANK LENDING PROBLEM”
Lenders need the bailout NOT the borrowers.
I found a glass slipper or maybe its a hat.
I think it might belong to one of the posters 🙂
“Action Heroes”
or
writers for the plot line of”Continuum”
Set in Vancouver British Columbia, the year is 2077, world governments have fallen and have been bought out by corporations leading to loss of privacy and basic rights. A group of fanatical terrorists, bent on getting freedom back at all costs, destroy multiple buildings killing 30,000 people while targeting 20 members of the Corporate Board. As the 7 terrorists are about to be executed they attempt an escape by being sent back in time 6 years instead being sent back 65 years to our time, 2012.
What are the odds …
Kagame…
… reset of Liber8’s agenda.You can’t solve a problem when you have NO IDEA what that problem is. The first step is to define the problem… and when I do that, …
Please recall that “Neo”, the hero of the “Matrix” movie, was rerunning the same “program” for the seventh time. (humans are fighting against intelligent machines).
Although “Neo” thought that he was out of the “matrix” he was still in the program. The program had been reset 6 times with variations of the events but with the same final out come. A reset. The problem had not been properly identified. Therefore, the solution could not be found and a reset was done hoping for a variable that would change the outcome, a reset. The objective was to find a sustainable outcome.
Enough.
Back to reality.There is still no consensus on what is the “PROBLEM”. Even if the “PROBLEM” gets identified by an observer nothing will change until it is implemented by “actors”.
As a result, there is no way of implementing a solution to the “problem”.
Is the problem in the financial system?
Is the problem in the social system?
Is the problem in our DNA?
We are all observers in a reality that has been played out 100‘s of times in the history of mankind and it has been recognized by many writers.I believe that the “problem” is in our DNA.
We all want and strive to have a better life for ourself and our loved ones. (Growth!)
During caveman times, you just moved to another valley to get away from any trouble in the clan and created a better life.Over time, the next valley became occupied and finding a place to get a better life became harder and harder.
Now, all the next valleys are occupied. Growth can only occur at the expense of someone else.Can sustainability be achieved without growth, one of our inner driving force of survival?
So … when you ask “Which side are you on?”
My answer is …. MY SIDE.
Your answer is … MY SIDE.
EVERYONE SAYS “MY SIDE.”Its not greed.
Its not selfishness.
Its the way we are made in order to survive.TOPIC: What Choice is in Greece’s Best Interest?
That’s easy …
A parliament that is just like the USA.Promises promises but impossible to enact.
Keep the money flowing to Greece.
When history is written …
I’m sure that this will be one of the points of view that will be hotly debated.Here is a point of view that should be added to the pot of soup.
Highrev @ M.T.
Since I’m a nice guy, and since I like you all, I’m going to try things from another angle by dumbing this down.
What would you be saying about Spain if there had been no real estate bubble? Does it get any clearer with that?
Well, when you look at the base population homeowner statistics, it looks like there was no bubble, doesn’t it? DON’T PROJECT!!! The Spanish real estate bubble was nothing like the U.S. real estate bubble. It wasn’t broad based! There was no Home ATM mentality! The liabilities, or toxic assets if you like, were in, and stayed in, the hands of a relatively few speculators (percentage wise). Do you dare take off the blinders and look more closely at how many of those speculators aren’t even Spanish?
Is than understandable?
Don’t bring out the unemployment rate on me now. What’s the REAL unemployment rate in the States? Compare apples with apples. The unemployment rate reported in Spain is the real unemployment rate. Benefits keep getting extended and people don’t roll off. And then if I asked another “if there were” question like if there were no illegal migrants on the dole? How many illegal migrants were allowed invited to enter Spain during the past 7 years of Socialist idiocy? If they weren’t here? If they were deported? (Don’t worry, they’re not going to be deported. They’re what is going to constitute a huge, cheap labor pool that’s not only going to be one of the pillars of Spain’s competitive advantage, but also what’s going to ultimately kill the unions. Once again, the Socialist hand backfires.)
On top of that, on top of reality (that I hope has been made a little clearer anyway with that mental exercise), I’ve said it before, but I’m not sure if I’ve said it here: the current government is implementing Reaganomics. Yep, you heard me right. Study what they’re doing, then google Reaganomics, and then try to tell me they’re not.
From his point of view, a few rich money managers/bankers made bad club med investments and want to make Spain pay the price.
Greek banks are bankrupt.
Spanish banks are bankrupt.Let me say it another way
they do not have any money.Let me say it another way.
Who is supplying the money to the bankrupt banks to give to the depositors.
HOW WILL THE the greek banks and Spanish banks that do not have any money, repay who ever is supplying the money for those deposits.Following the money trail means you are following the bankruptcy trail.
Its a dark path.
I’m sure that the ancient wise men wanted to send their wisdom down through the ages.
There are a number of vehicles that had survived to reach those wise men.
Surely, they were wise enough to use the same vehicles.Songs …
Games …
Sacred writings.
Unfortunately, they did not expect us to become as stupid as we have become.
(Don’t look back, you’ll turn into a pillar of salt 🙂 )In case you are wondering , I’m not considered religious)
If they did not change/undermine the existing regulations/laws, generate more credit/debt and concentrate more wealth among fewer and fewer corporate powers, the financial capitalist system would have broken down a long time ago.
The number of players/gamblers/traders/fools trying to make money in the stock market are getting fewer by the day.
Any intelligent person can see that its impossible for the traders to set the value of an index to be below its 200 day moving average by 100’s of point and then within days reverse that move.
If the economy was bad yesterday its still bad today.
@ I&S
You got to spend more time posting.
You bring out the old/new posters 🙂Concerning Spain.
(From MT)
Spain now claims to be “locked out of the market” at a 6% 10 year bond yield. Let this sink in for a minute. It was not long ago that a 6% bond yield was considered reasonable. This ought to tell you exactly where everyone in the Eurozone is — they cannot afford the interest payments if and when the bond market normalizes. Consider that a 6% mortgage was considered incredibly good just a few years ago but Spain cannot afford to pay that rate on their borrowing.If 6% is bad for Spain then what would you say it is for people paying 29% for credit cards?
There use to be a time when people did not have mortgages, debts and did not give the majority of their income to the financial institutions.
The system has been rigged in favor of the financial system.
Extraction of your earnings by any and all means.news flash 🙂
All germans will get 50% discount coupons for their next Greek holiday if they go to the newly acquired/nationalized club med.
If only because the danger to your kids doesn’t stop with your governments stuffing you – and them – with your banks’ debt when you weren’t looking. It’s way worse than that.
Its so much fun when you are dealing with other people money and pretend money.
😉Geee! I would have thought that the gov was stuffing me with all those bank debts having liens on some real assets which I would get in the event of a bank default.
You are saying that I wont even be able to get to use a “time share” on those assets which are in Greece or Spain?
Can I sell you my “future time shares”?What Canada has, to knit all the provinces together, is called “equalization payments”.
https://en.wikipedia.org/wiki/Equalization_payments_in_Canada
What the EU needs is “equalization payments”. It might not be possible to implement such a program in time to save the EU.
https://www.zerohedge.com/news/why-grexit-would-make-lehman-look-childs-play
“I still think we should have had more Lehman moments. In fact, not letting the AIG moment occur was probably a bigger mistake, but most politicians have taken the lesson never to let a “Lehman” happen again, so once they see that Greece is Lehman on steroids, they will back down and figure out enough to give Europe and the markets a solid kick.”
As far as the US, the bankrupt states are already getting “equalization payments” by the back door.
I expect QE3 to come up with programs aimed at saving state and local gov. and with the banks benefitting from the admin of those programs .Portugal has a deposit fund of 1.4 billion euros collected from banks through annual contributions, according to Barclays. The country’s total deposits stood at 164.7 billion euros at the end of March, according to the central bank.
And where was that 1.4 billion euros invested so that it would be available?
Sound like a fishy story.
Well its finally here.
Money is going into gov bonds and paying for the privilege.
We can also see the other implications that this means.
Growth is no longer happening.
The price of a barrel of oil is approaching the $90.00.
Its great if you still have a job and money to spend for it.
Its still too expensive and unaffordable if your income is too low or nil.Good call I&S.
What’s really left to say about Spain, anymore?
Its sad to see a community that is dying.
Many a community has had to re-invent itself after the main driver of its economy had been closed/wound down/depleted.
I’m thinking of mining towns. It starts with the discovery, then it goes into exploration and evaluation, setting up exploitation, peak production followed by winding down of the operation.
Eventually, everyone that was associated with the mining has moved on to other operations and the remaining community has been downsized to a sustainable level based upon a variety of other re-invented enterprises.A comparison with the winding down of a mining community is only a small picture of what will happen when a whole country must re-invent because of a winding down of its economy.
This requires a culling and a “leaving dodge city” that is not manageable.
Why!
We cannot even handle the present problems of “illegal immigrants” that are leaving their “dodge city”/country.In the past cullings, (french revolutions, WWII, etc.), many of the 0.01% managed to escape to another country and lived another day as “illegal immigrants” with their bag of gold in their possession. Therefore, they probably expect to escape this time.
This time its going to be different. There will be no place to escape.
There isn’t a mechanism, that will not affect the 0.01% which can be used to cull the extra mouths to feed and to handle the “illegal immigrants” when the whole world economy needs to wind down and reset?
Nobody will be able to sit back eating popcorn and watch it happen.
We are entering uncharted economic and social territory.Well! well! well!
Everyone is starting to see the light.
… mutually assured destruction…
The Greeks have a bigger gun that the EU
All of those professional financial advisors did was to line their own pockets.
Wake up!
https://www.zerohedge.com/news/german-press-greek-exit-done-deal
German Press: “The Greek Exit Is A Done Deal”
The EU has finally realized that the Greeks have not met any agreements and will not continue not to meet them.
Most debts are now in the public sector – ie the ECB and the IMF. In the case of a state bankruptcy of Greece on the Target 2 system, the German Bundesbank would be taken immediately. Altogether, it is so appreciated, are the Greeks with 200 billion euros at the ECB and the IMF in debt.
