Thursday, March 26, 2009

EXCELLENT POINTS BY BOB FANNING ON CREDIT DEFAULT SWAPS!

The following discussion revolved around this article in 3/25/09 Wall Street Journal
Toxic Assets Were Hidden Assets
We can't afford to allow shadow economies to grow this big.
By HERNANDO DE SOTO
WSJ 3/25/09

_________________________________________________________________
Bob,

One last thing I forgot to mention...I LOVE this phrase:
"Every financial deal must be firmly tethered to the real performance of the asset from which it originated."
That, is exactly what this diaper washing Mom asked twenty years ago, but in simpler language: "Where's the product?"
Roni
____________________________________________________________________
Roni

As I explained it to an aide;
"Every spouse is entitled to have a life insurance contract on her husband."
"Its an entirely different thing when she and her tennis instructor that she's having an affair with buy the policy."
I went on to say; " When she, her lover and 100 people in their swingers club all buy policies, it's murder".
There is your credit default swap analogy.

It's no wonder they are "opaque"
It's no wonder they are "unregulated"
It's no wonder that the federal reserve said that they are "secret" .
It's no wonder that the federal reserve refused to disclose where the $2 trillion went when Bloomberg and FOX news dragged the federal reserve/ U.S. Treasury into court.
It's no wonder that Congress and the Senate won't have open televised public hearings on CDS.
It's no wonder that the fed/Treasury refused to bankrupt the companies that wrote CDS , thus giving the bankruptcy court the authority to tear up CDS contracts.
It's no wonder why everything is an "emergency" and a "crisis'" that have to be solved in 5 minutes without public hearings. Rush, rush, rush, rush. Says who?
It's no wonder that Alan Greenspan joined John Paulson & Co UK one of the billion dollar hedge funds that bought Credit Default Swaps. http://www.reuters.com/article/pressRelease/idUS136083+15-Jan-2008+PRN20080115
It's no wonder that Congress won't look into whether Rockefeller ,Kissinger,Rubin,Frank, Dodd, Clinton, Obama, Pelosi , Reid, Greenspan, Schumer etc. own credit default swaps in foreign bank in their personal accounts .
CDS are the weapon of mass destruction that an alliance between social engineers and financial engineers used to wipe the United States of America off the map.
Robert T Fanning Jr.

1 comment:

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