naked capitalism

skippy says:

Like big numbers see:

Which brings us to our point: thank you Mr. Einhorn for finally starting to focus people’s attention on one of the many facets of the Fed’s uncontrollable liquidity Frankenstein. CDS, while destructive, is merely the appetizer. What will truly annihilate financial markets are all those instruments that are in place only to perpetuate the myth that a 5% interest rate in 30 year Treasurys is somehow exorbitant (based on a quick back of the envelope calc, should prevailing interest rates move higher by 1%, the net IR exposure will rise by $3 trillion… in the wrong direction… at an exponential pace). Yet what better way to keep rates where they are than than to tell China: “Hey guys, you bust one auction, and this spring loaded balloon full of $420 trillion pieces of worthless Washington feces will blow up right in your face (and take us all down with you).” In essence this is an amusing revision of that old fable: the Fed owes the world a few billion here and there: well, Ben, you are out of luck, “You’re Fired”; the Fed owes the world $1.4 quadrillion in naked and worthless pieces of paper (whose nudity will become apparent the second someone calls Bernanke’s bluff) and the Fed owns the world.

http://www.zerohedge.com/article/here-there-be-big-nymbers-sic

Skippy…death by zeros…who would have thunkit!

winterwarlock says:

That blackhole is about to get very big, very fast.

They shorted the motor, global communication, running it in reverse, then discharged the battery, the middle class, to extend the ponzi scheme globally. Now they are burning up the components, one by one, throwing these non-performing assets into that blackhole, hoping to fill it, but actually feeding it.

Expecting China to power the global economy is like taking the motor out of a Honda lawnmower, and placing it in a Hummer body before a cross-country trip. At this point, China can’t get out of its own way, because it is dependent on exporting to false economies, and internal participants have been practicing anarchy for centuries.

Normally, operators exit through currency into depressed real estate, but that path has been eliminated by the younger generations refusing to supply demand. Now, they are chasing highly mobile talent with long-term capital traps, paid for with short-term debt.

Because they bred the majority of the population for response to fear stimulus, there will be fear, as the old economy shrinks toward the core of ponzi scheme operators.

I was talking to a union president in MA just the other day, with a third of his men on the bench, and he was bragging about making six figures, while all his henchmen were still working …