UK Pound More Unloved than Even Mugabe's Dollar- Times of London


There are 1,414 TRILLION dollars worth of derivatives out there that have to be settled...
The bankers are still writing more of them...
WE ARE FREAKING DOOMED...
PLEASE READ THE FOLLOWING.

Jim Sinclair’s Commentary
The FDIC is going to cure the problem below by securitizing seized assets and selling them to the public. We are truly lost!

An Easily Understandable Explanation of the Derivatives Markets

Heidi is the proprietor of a bar in Detroit. She realizes that virtually all of her customers are unemployed alcoholics and, as such, can no longer afford to patronize her bar. To solve this problem, she comes up with new marketing plan that allows her customers to drink now, but pay later.
She keeps track of the drinks consumed on a ledger (thereby granting the customers loans).
Word gets around about Heidi’s "drink now, pay later" marketing strategy and, as a result, increasing numbers of customers flood into Heidi’s bar. Soon she has the largest sales volume for any bar in Detroit.
By providing her customers’ freedom from immediate payment demands, Heidi gets no resistance when, at regular intervals, she substantially increases her prices for wine and beer, the most consumed beverages. Consequently, Heidi’s gross sales volume increases massively.
A young and dynamic vice-president at the local bank recognizes that these customer debts constitute valuable future assets and increases Heidi’s borrowing limit. He sees no reason for any undue concern, since he has the debts of the unemployed alcoholics as collateral.
At the bank’s corporate headquarters, expert traders transform these customer loans into DRINKBONDS, ALKIBONDS and PUKEBONDS. These securities are then bundled and traded on international security markets. Naive investors don’t really understand that the securities being sold to them as AAA secured bonds are really the debts of unemployed alcoholics.
Nevertheless, the bond prices continuously climb, and the securities soon become the hottest-selling items for some of the nation’s leading brokerage houses.
One day, even though the bond prices are still climbing, a risk manager at the original local bank decides that the time has come to demand payment on the debts incurred by the drinkers at Heidi’s bar. He so informs Heidi.
Heidi then demands payment from her alcoholic patrons, but being unemployed alcoholics they cannot pay back their drinking debts. Since, Heidi cannot fulfill her loan obligations she is forced into bankruptcy. The bar closes and the eleven employees lose their jobs.
Overnight, DRINKBONDS, ALKIBONDS and PUKEBONDS drop in price by 90%. The collapsed bond asset value destroys the banks liquidity and prevents it from issuing new loans, thus freezing credit and economic activity in the community.
The suppliers of Heidi’s bar had granted her generous payment extensions and had invested their firms’ pension funds in the various BOND securities. They find they are now faced with having to write off her bad debt and with losing over 90% of the presumed value of the bonds. Her wine supplier also claims bankruptcy, closing the doors on a family business that had endured for three generations, her beer supplier is taken over by a competitor, who immediately closes the local plant and lays off 150 workers.
Fortunately though, the bank, the brokerage houses and their respective executives are saved and bailed out by a multi-billion dollar no-strings attached cash infusion from the Government. The funds required for this bailout are obtained by new taxes levied on employed, middle-class, non-drinkers.

Now, do you understand?


Protect yourself NOW, or one morning you will wake up and find out that...
1. The dollar has been devalued. (Either by massive inflation or by outright devaluation of the dollar).
2. Your 401k will be confiscated...for a new socialist retirement account...(for the greater good)

On the first point, obama has said several times, he wants a slow devaluation of the dollar...
What that really means is he is stealing a percentage of your money by making it worth-less.
He wants 40-60% of your money!!!

On point 2 Democraps in Congress have been working on a plan to make you turn over your 401k to them...The law they pass will make it mandatory with huge fines and jail if you don't comply, just as FDR did when he confiscated gold in 1933.

Google it and do your own research....





Now that you understand derivatives read this....


Jim Sinclair’s Commentary
The FDIC is to enter the OTC derivative business by securitizing acquired assets from bankruptcy. This is an interesting solution to a problem brought on by securitizing assets.
"FDIC sources confirmed to HousingWire in January a move to consider securitizing assets seized from failed banks and depository institutions. The Securities Industry and Financial Markets Association (SIFMA) called it “an attempt to restart the stalled securitization markets.”"
FDIC Guarantees $1.8bn of Structured Financing on Failed Bank Assets by DIANA GOLOBAY Wednesday, March 3rd, 2010, 2:11 pm
Guidance is out on a forthcoming issue of structured notes from the Federal Deposit Insurance Corp. (FDIC).
The issue, which is expected to be backed by private-label mortgage-backed securities (MBS) acquired through depository bank failure receiverships, is expected to launch and price this week.
One class of notes worth $1.33bn is said to be at 65bps over Libor, while the class of $480m of notes range at swaps plus 90 to 95bps, according to price guidance provided to HousingWire.
The issue bears a 100% FDIC guarantee, meaning it bears the full faith and credit of the US.
Sources confirm that Barclays Capital is lead arranger on the deal though the official release of information remains restricted.
More…



Britain Grapples with Debt of Greek Proportions- NY Times





Greek PM Declares War on Bloated Budget- Bloomberg





Bailout Mutiny Looms with Iceland's Taxpayer Vote- Bloomberg





The United States of Deferred Maintenance- NY Times





The New Industrial Ghost Towns- USA Today





Electricity Use Plunges in Recession- Baltimore Sun





alarming opinion piece by Niall Ferguson that ran in the Los Angeles Times: America, the fragile empire--Here today, gone tomorrow -- could the United States fall that fast?


Ambrose Evans-Pritchard: Don't Go Wobbly on Us Now, Ben Bernanke


The Sovereigns and the Serfs


Peter Schiff: Don't Bet on a Recovery


The Financial Battle For The Middle Class: Underemployment At 20%; 38 Million Americans On Food Stamps; Little Hiring; Can It Be A Recovery With No Jobs For This Long?