2013-07-31 Today's Phrase of the Day: Hold off from any recycle bin experts
- #673,282
- Jul 30, 2012 11:06am Jul 30, 2012 11:06am
- | Commercial User | Joined Feb 2010 | 13,260 Posts
- #673,283
- Jul 30, 2012 11:07am Jul 30, 2012 11:07am
- | Membership Revoked | Joined Mar 2009 | 16,693 Posts
- #673,286
- Jul 30, 2012 11:10am Jul 30, 2012 11:10am
- Joined Mar 2010 | Status: Trader | 42,434 Posts
2013-07-31 Today's Phrase of the Day: Hold off from any recycle bin experts
- #673,287
- Jul 30, 2012 11:10am Jul 30, 2012 11:10am
- | Membership Revoked | Joined Mar 2009 | 16,693 Posts
- #673,289
- Jul 30, 2012 11:14am Jul 30, 2012 11:14am
- Joined Mar 2010 | Status: Trader | 42,434 Posts
2013-07-31 Today's Phrase of the Day: Hold off from any recycle bin experts
- #673,290
- Jul 30, 2012 11:15am Jul 30, 2012 11:15am
- | Membership Revoked | Joined Mar 2009 | 16,693 Posts
- #673,291
- Jul 30, 2012 11:16am Jul 30, 2012 11:16am
- | Membership Revoked | Joined Jul 2012 | 4,197 Posts
"It's the Margin, Stupid."
- #673,292
- Jul 30, 2012 11:17am Jul 30, 2012 11:17am
- | Membership Revoked | Joined Mar 2009 | 16,693 Posts
- #673,293
- Jul 30, 2012 11:18am Jul 30, 2012 11:18am
- | Membership Revoked | Joined Mar 2009 | 16,693 Posts
- #673,295
- Jul 30, 2012 11:21am Jul 30, 2012 11:21am
- Joined Aug 2008 | Status: Persist Until Something Happens | 17,898 Posts
Funny how the tables turn... and then they turn again.
This year many banking executives will not be getting a bonus, and those that do will most likely get a reduced one.
I, on the other hand, the lowly retail trader, get a huge bonus this year thanks in part to the bozos running Europe (ex GS banking execs) who managed to screw up the markets without even trying... and also thanks in part to my patience and persistence in being a non-believer in the European monetary union's leaders.
That makes the present banking execs really mad. So much so they are about to launch a revengeful plan of attack, and here it is...
The central bankers have convinced the powers that be (The bozos we Europeans elected... and the ones we didn't) to let them have a shot at fixing things. Since banks control governments and free markets (not so free after all) through their most powerful secret weapon (debt), they are going to lull the free(?) markets into a false sense of security by providing cash for debt which they will borrow from a fund that will be funded by the same debt they are creating by pushing a few buttons to supply cash to the borrowers.
What? Yes that's right. Let me repeat it again. They will provide cash to governments in exchange for government bonds. The cash that they provide will be created by the bonds that they are given in exchange for the bonds.
What? Okay now even I am confused. So let's break it down in more detail.
The EFSF has no money. It only has promises to supply the money that will be needed when the manure hits the fan.
So...
1. Spain and Italy will sell government bonds to banks for cash.
2. The banks take those government bonds to the ECB and exchange them for cash.
3. The ECB takes those government bonds and sells them to the EFSF for cash.
Wait, what cash? The EFSF has no cash. Oh yes, cash created from empty promises to provide cash when the manure hits the fan. Okay, let's edit #3
3 (edited). The ECB takes those government bonds and sells them to the EFSF for empty promises.
Wait.. So where does the ECB get the cash to give to the banks in exchange for the government bonds? Oh yes, they type a few keystrokes on a keyboard and it magically appears.
4. So now cash has been created out of promises by the governments to provide cash to the ECB, to provide cash to the banks, to lend to the governments.
Excuse my French here but that's just too f**ked up.
The end result is that Spain and Italy are lending their own money to themselves, but they have to pay interest to the banks.
Nice one GS. You've come up with yet one more scheme to rip off the hard working tax payer. How long before you outright own the friggin continent?
This year many banking executives will not be getting a bonus, and those that do will most likely get a reduced one.
I, on the other hand, the lowly retail trader, get a huge bonus this year thanks in part to the bozos running Europe (ex GS banking execs) who managed to screw up the markets without even trying... and also thanks in part to my patience and persistence in being a non-believer in the European monetary union's leaders.
That makes the present banking execs really mad. So much so they are about to launch a revengeful plan of attack, and here it is...
The central bankers have convinced the powers that be (The bozos we Europeans elected... and the ones we didn't) to let them have a shot at fixing things. Since banks control governments and free markets (not so free after all) through their most powerful secret weapon (debt), they are going to lull the free(?) markets into a false sense of security by providing cash for debt which they will borrow from a fund that will be funded by the same debt they are creating by pushing a few buttons to supply cash to the borrowers.
What? Yes that's right. Let me repeat it again. They will provide cash to governments in exchange for government bonds. The cash that they provide will be created by the bonds that they are given in exchange for the bonds.
What? Okay now even I am confused. So let's break it down in more detail.
The EFSF has no money. It only has promises to supply the money that will be needed when the manure hits the fan.
So...
1. Spain and Italy will sell government bonds to banks for cash.
2. The banks take those government bonds to the ECB and exchange them for cash.
3. The ECB takes those government bonds and sells them to the EFSF for cash.
Wait, what cash? The EFSF has no cash. Oh yes, cash created from empty promises to provide cash when the manure hits the fan. Okay, let's edit #3
3 (edited). The ECB takes those government bonds and sells them to the EFSF for empty promises.
Wait.. So where does the ECB get the cash to give to the banks in exchange for the government bonds? Oh yes, they type a few keystrokes on a keyboard and it magically appears.
4. So now cash has been created out of promises by the governments to provide cash to the ECB, to provide cash to the banks, to lend to the governments.
Excuse my French here but that's just too f**ked up.
The end result is that Spain and Italy are lending their own money to themselves, but they have to pay interest to the banks.
Nice one GS. You've come up with yet one more scheme to rip off the hard working tax payer. How long before you outright own the friggin continent?
Those who say it cannot be done should not interrupt those who are doing it
- #673,296
- Jul 30, 2012 11:23am Jul 30, 2012 11:23am
- | Membership Revoked | Joined Mar 2009 | 16,693 Posts
- #673,297
- Jul 30, 2012 11:27am Jul 30, 2012 11:27am
- | Membership Revoked | Joined Mar 2009 | 16,693 Posts
- #673,298
- Jul 30, 2012 11:27am Jul 30, 2012 11:27am
- Joined Mar 2010 | Status: Trader | 42,434 Posts
2013-07-31 Today's Phrase of the Day: Hold off from any recycle bin experts
- #673,299
- Jul 30, 2012 11:30am Jul 30, 2012 11:30am
- Joined Mar 2010 | Status: Trader | 42,434 Posts
2013-07-31 Today's Phrase of the Day: Hold off from any recycle bin experts
- #673,300
- Jul 30, 2012 11:31am Jul 30, 2012 11:31am
- | Membership Revoked | Joined Mar 2009 | 16,693 Posts