Global Debt Time Bomb explodes soon

Topics in this category pertain to planning. Discussions include how to prepare yourself, your family and your community for catastrophes and what you plan to do when they hit you.

Moderator: ZS Global Moderators

User avatar
raptor
ZS Global Moderator
ZS Global Moderator
Posts: 17060
Joined: Sun Mar 04, 2007 10:18 pm
Location: Greater New Orleans Area

Re: Global Debt Time Bomb explodes soon

Post by raptor » Sun Oct 16, 2011 5:58 pm

phil_in_cs wrote:
Pilsung wrote:http://www.forexlive.com/blog/2011/10/1 ... nt-page-1/

According to the London Sunday Times, China has supposedly tabled a secret (not so much) offer to save the Euro by buying up billions of dollars in EU infrastructure.

Quotes sources close to G20 talks as saying China is willing to pump billions into the euro zone by buying infrastructure assets. Report also says Chinese banks would increase purchases of euro zone sovereign debt.

Before doing so though, the Chinese want to see further budget cuts and structural reforms.
Note this isn't a bailout - grant - but purchase for cash of existing national assets. I'd bet a plugged nickle that 'assets' means 'ports and utility companies' rather than 'sovereign bonds'. As in "We will pay you 50 cents on the dollar for the national electric company, so that you have cash to repay your other debts."

Ah the irony. The Chinese taking over European ports...can someone say imperialism.

User avatar
MrMendigo
* * *
Posts: 715
Joined: Sun Dec 07, 2008 7:04 pm
Favorite Zombie Movies: The Army of Darkness, and The Evil Dead,
Shawn of the dead, ect.

Re: Global Debt Time Bomb explodes soon

Post by MrMendigo » Sun Oct 16, 2011 10:51 pm

phil_in_cs wrote:There's a major failing in discussions these days, of "reductionism". You see this on comedy shows, as it is funny, but you should not apply it to actual debate.

Say you have a group of 2 billion people. 0.01% of that group is a sizeable amount - 200,000 people. Say those 200,000 have some crazy idea. Mocking them is one thing - applying that mocking to the entire 2 billion is not valid. Comedians do it all the time for laughs, but it doesn't work in real discourse.

There's a concept I heard in management studies years ago called "The Bozo Bit", as in "Don't Flip the Bozo Bit". On a computer or other machine, once you set something it is set until something changes it, right? Well, on people, once you decide they are a Bozo you then disregard everything they ever say. Many people can be wrong on a point, or wrong on a solution to a point, without being a Bozo. Someone can have a legit grievance and what you consider an incorrect solution. That doesn't mean they a bozo, it means you need to respect them, converse with them, and educate them on your idea of a solution.
Not unlike the logical fallacy of the undistributed middle term.

User avatar
SeerSavant
* * * * *
Posts: 3607
Joined: Fri Jul 30, 2010 8:18 pm
Favorite Zombie Movies: Dawn of the Dead
28 Days Later
Serenity/Firefly (Reavers, man!)
Location: Virginia Beach

Re: Global Debt Time Bomb explodes soon

Post by SeerSavant » Mon Oct 17, 2011 11:06 am

phil_in_cs wrote: Note this isn't a bailout - grant - but purchase for cash of existing national assets. I'd bet a plugged nickle that 'assets' means 'ports and utility companies' rather than 'sovereign bonds'. As in "We will pay you 50 cents on the dollar for the national electric company, so that you have cash to repay your other debts."
Isn't this what happened to Argentina? As i recall, (may be off on this, brain's not wired that well this week) Argentina sold off a lot of their national assets to pay down their debt, and ended up even worse off, because the infrastructure wasn't there any longer to provide the revenue to continue paying down their debt.

I think I remember them having an issue with Benetton and their agricultural, as it was far cheaper to export what they grew than to sell to the local population.



Personally, isn't this a lot like selling your car because you cant afford the gas? So now you can buy all the gas you want, but... No car?

I don't see a good side to this deal...
Image

User avatar
phil_in_cs
ZS Member
ZS Member
Posts: 11424
Joined: Fri Dec 28, 2007 4:18 pm
Location: central tx

Re: Global Debt Time Bomb explodes soon

Post by phil_in_cs » Mon Oct 17, 2011 12:28 pm

SeerSavant wrote: I don't see a good side to this deal...
I think you are correct, but the short term issue is "do we pay off the bonds or default, and if we are going to pay them were do we get the cash today?"

It is very easy to get blinded to long term problems when you have a short term crisis.
Don't confuse a belligerent and aggressive attitude with the strength, training, and conditioning needed to prevail in a fight. How do you know you have the Will To Win, if you don't even have the will to train?

User avatar
Kommander
* * * * *
Posts: 4274
Joined: Fri Oct 12, 2007 12:38 am
Location: Mesa, AZ

Re: Global Debt Time Bomb explodes soon

Post by Kommander » Mon Oct 17, 2011 12:40 pm

phil_in_cs wrote:It is very easy to get blinded to long term problems when you have a short term crisis.

Which is partially how this mess got started in the first place.
Why must all the hoops be on fire?

User avatar
NoAm
ZS Chapter Volunteer
ZS Chapter Volunteer
Posts: 4798
Joined: Tue Nov 10, 2009 7:34 pm
Favorite Zombie Movies: Contagion, Carriers, Zombieland, Dawn of the Dead, Night of the Living Dead, Resident Evil (s), 28 Days Later, 28 Weeks Later
Location: WNC Mountains
Contact:

Re: Global Debt Time Bomb explodes soon

Post by NoAm » Mon Oct 17, 2011 3:48 pm

HOLY CRAP! Down almost 250 points today! :shock:
Boy am I glad we got most of our 'moving around' done last week!

After posting a stellar rally in the previous week, all major indexes are now back in negative territory for the year.....................
http://www.cnbc.com/id/44929422
ZSC025 President
Check out this months newsletter To see how to save on food storage
ZS Chapter VolunteerHave questions about starting a chapter?●Want to find other ZS members in your area? Looking for other ZS members to start a chapter with? Check here first New Chapter Coordination Questions or email us at [url=mailto://chapters@zombiehunters.org]chapters@zombiehunters.org[/url]

User avatar
Ashurah
* *
Posts: 121
Joined: Mon Mar 14, 2011 9:47 pm
Favorite Zombie Movies: Zombieland

Re: Global Debt Time Bomb explodes soon

Post by Ashurah » Mon Oct 17, 2011 4:27 pm

NoAmnesty wrote:HOLY CRAP! Down almost 250 points today! :shock:
Boy am I glad we got most of our 'moving around' done last week!

After posting a stellar rally in the previous week, all major indexes are now back in negative territory for the year.....................
http://www.cnbc.com/id/44929422

I hate to sound too negative but i'm not too surprised. While I would like to remain hopeful, I have this bad feeling that it's only gonna get worse as time goes on.

With that said, i've been following this thread for a very long time and just wanna say thanks for the hard work of those who have continuously contributed. I consider this thread a pretty good source for information. I've definitely learned a lot from the members here.
camlost wrote:
MonsterZero wrote:When did this become a hunting expedition?
There's an unspoken belief among the users of this forum.
"That which was once dead should remain dead and should it once again walk the earth, duty decrees that it must be sent back from whence it came. Preferably in the most bad-ass way possible. "

I would assume this applies to dinosaurs.

User avatar
NoAm
ZS Chapter Volunteer
ZS Chapter Volunteer
Posts: 4798
Joined: Tue Nov 10, 2009 7:34 pm
Favorite Zombie Movies: Contagion, Carriers, Zombieland, Dawn of the Dead, Night of the Living Dead, Resident Evil (s), 28 Days Later, 28 Weeks Later
Location: WNC Mountains
Contact:

Re: Global Debt Time Bomb explodes soon

Post by NoAm » Mon Oct 17, 2011 8:28 pm

Berlin tempers summit hopes, banks under pressure
http://www.reuters.com/article/2011/10/ ... LK20111017" onclick="window.open(this.href);return false;

Drowning in debt, EU hits moment of truth
http://www.breitbart.com/article.php?id ... _article=1" onclick="window.open(this.href);return false;

This article I found quite interesting. I have wondered how several countries coming together, to hold one currency, have regulated these rules, standards, etc. Some countries involved in the Euro are doing very poorly, so what can be done to keep from harming the other countries? There must be some kind of specific rules for the 'board' or whatever organization is over the Euro, or else they could all just end up in a standoff or sunset style duel. Do all the countries involved have the same percentage of vote? One for One or is it based on the size and equity or other basis?
http://www.ft.com/intl/cms/s/0/873e4b14 ... z1b2M0MT2p" onclick="window.open(this.href);return false;
ZSC025 President
Check out this months newsletter To see how to save on food storage
ZS Chapter VolunteerHave questions about starting a chapter?●Want to find other ZS members in your area? Looking for other ZS members to start a chapter with? Check here first New Chapter Coordination Questions or email us at [url=mailto://chapters@zombiehunters.org]chapters@zombiehunters.org[/url]

User avatar
TC
* * * * *
Posts: 2983
Joined: Wed Nov 14, 2007 4:44 pm
Location: United Kingdom

Re: Global Debt Time Bomb explodes soon

Post by TC » Tue Oct 18, 2011 6:01 am

More bummer news in the UK today:
Reuters wrote: Inflation hits 3-year high of 5.2 percent in September

(Reuters) - Inflation in Britain hit a three-year high in September driven by soaring gas and electricity bills, data showed on Tuesday, adding to a severe squeeze on Britons' living standards as wages fail to keep up with rising prices.

The jump highlights the risk to the Bank of England's recent move to revive the faltering economic recovery with a fresh dose of quantitative easing, which could add to inflation already way above the Bank's two percent target.

The central bank expects inflation to drop sharply next year when one-offs, like this year's value-added tax rise fall out of the equation and the weak economy dampens wage and price increases.

Consumer prices rose 0.6 percent last month, taking the annual inflation rate to 5.2 percent, the highest since September 2008, the Office for National Statistics said.

CPI has never been above 5.2 percent since the introduction of the measure in January 1997. Analysts had expected the annual rate to jump to 4.9 percent from 4.5 percent a month earlier.

The retail price inflation gauge, which includes more housing costs and is the benchmark for many wage deals, rose 5.6 percent year-on-year, its highest level since June 1991...(continued at link)
Also:
Reuters wrote: World shares fall after China GDP, French warning

(Reuters) - World stocks stumbled from the previous day's 1-1/2 month high on Tuesday and government bonds rose as slower-than-expected Chinese growth and a warning on France's triple-A sovereign credit rating prompted investors to cut risks.

The spread between French and German 10-year government bond yields rose to a 16-year high after rating agency Moody's said it may slap a negative outlook on France's credit rating in the next three months. Concerns have been rising over the costs to Europe's major economies if they have to bail out more banks or weaker euro zone members.

China's annual gross domestic product growth eased to 9.1 percent in July-September, slightly below forecasts of 9.2 percent, indicating the world's second-largest economy expanded at its slowest pace since the second quarter of 2009.

"Investors' resolve is being tested quite considerably. The situation in Europe is still overhanging in a very large fashion and the Chinese data does add another tick in the box of worries for investors to digest," said Keith Bowman, equity analyst at Hargreaves Lansdown...(continued at link)
Personally, I'm not too worried about China trying to take over the world at the moment. I really don't think they're doing/going to be doing as well as a lot of people think. Yes, ultimately they will very likely come out at the top of the heap, but they've got a lot of trouble to get past first.

ETA:
Reuters wrote: Greece braces for shutdown as austerity vote nears

(Reuters) - Greek ships were harboured and garbage rotted in the streets of Athens on Tuesday as angry workers built momentum for "the mother of all strikes" expected to bring the country to a halt in protest against a new package of tax hikes and wage cuts.

Unions representing around half of Greece's 4 million-strong workforce have called a 48 hour general strike for Wednesday and Thursday to protest against a sweeping package of austerity measures due to be passed in parliament this week.

A wave of smaller strikes over recent days by groups ranging from rubbish collectors to tax officials, journalists and seamen has given a foretaste of this week's protest which will culminate in mass demonstrations in front of parliament, the scene of violent clashes in June.

The protest, dubbed "the mother of all strikes" by the daily Ta Nea newspaper, is expected to be the biggest since the financial crisis began two years ago, shutting state offices, shops and even providers of everyday staples like bakers.

Prime Minister George Papandreou, battling to satisfy demands from international lenders for even tougher action, has appealed for unity, saying the package, due to be passed on Wednesday or Thursday, must pass to allow Greece to emerge from the crisis...(continued at link)
ETA2:
Reuters wrote: Moody's cuts Spain's rating by two notches

(Reuters) - Moody's Investors Service on Tuesday cut Spain's sovereign ratings by two notches, saying high levels of debt in the Spanish banking and corporate sectors leave the country vulnerable to funding stress.

Further downgrades of Spain's rating are possible if the euro zone debt crisis escalates, Moody's warned.

The agency cut Spain's government bond ratings to A1 from Aa2, concluding the review for a possible downgrade it had initiated at the end of July. The new rating has a negative outlook.
KentsOkay wrote: I immediately thought about calling 911, but once we got to the T stop and got her out of her jeans, things seemed to be going a lot better.
TC's Defence of the Realm Target Download

razi
* * * * *
Posts: 3967
Joined: Fri Jun 02, 2006 5:42 pm

Re: Global Debt Time Bomb explodes soon

Post by razi » Tue Oct 18, 2011 10:35 pm

raptor, here's an interesting article for you.

http://www.bloomberg.com/news/2011-10-1 ... -unit.html

Apparently Bank of America transferred $75 trillion in high-risk (European) derivatives from Merrill Lynch to BoA, the latter of which is backed by the fed and fdic. the fear is that if Europe collapses, the us taxpayers will get stuck with the bill.
Image

User avatar
raptor
ZS Global Moderator
ZS Global Moderator
Posts: 17060
Joined: Sun Mar 04, 2007 10:18 pm
Location: Greater New Orleans Area

Re: Global Debt Time Bomb explodes soon

Post by raptor » Wed Oct 19, 2011 12:33 am

razi wrote:raptor, here's an interesting article for you.

http://www.bloomberg.com/news/2011-10-1 ... -unit.html

Apparently Bank of America transferred $75 trillion in high-risk (European) derivatives from Merrill Lynch to BoA, the latter of which is backed by the fed and fdic. the fear is that if Europe collapses, the us taxpayers will get stuck with the bill.
Great find. That is very interesting. If true, I hope someone will held accountable for this if B of A fails.

User avatar
phil_in_cs
ZS Member
ZS Member
Posts: 11424
Joined: Fri Dec 28, 2007 4:18 pm
Location: central tx

Re: Global Debt Time Bomb explodes soon

Post by phil_in_cs » Wed Oct 19, 2011 6:54 am

razi wrote:raptor, here's an interesting article for you.

http://www.bloomberg.com/news/2011-10-1 ... -unit.html

Apparently Bank of America transferred $75 trillion in high-risk (European) derivatives from Merrill Lynch to BoA, the latter of which is backed by the fed and fdic. the fear is that if Europe collapses, the us taxpayers will get stuck with the bill.
bloomberg news wrote:The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting
How truly wonderful.
Don't confuse a belligerent and aggressive attitude with the strength, training, and conditioning needed to prevail in a fight. How do you know you have the Will To Win, if you don't even have the will to train?

String
* *
Posts: 105
Joined: Sat Aug 08, 2009 10:52 am
Location: Denver

Re: Global Debt Time Bomb explodes soon

Post by String » Wed Oct 19, 2011 9:49 am

An interesting and simple article about the "Too Big to Fail" idea. Essentially European governments have agreed to back it's nations banks and have transferred the risk to their citizens while keeping the rewards firmly with the Banks. Of course this is the case here in America as well.

http://mobile.dw-world.de/english/ua.24 ... -1431.html" onclick="window.open(this.href);return false;

"The collapse of Lehman Brothers in 2008 introduced three new concepts to the public: Moral Hazard, Systemic Risk, and Too Big To Fail. The first was well-known but misunderstood, the second wasn't supposed to exist but did, and the third has helped morph the legacy of the 2008 banking crisis, the explosion of government debt across Europe, into a secondary banking crisis with a pernicious twist that is perhaps the real lesson of Lehman."
Image

User avatar
TC
* * * * *
Posts: 2983
Joined: Wed Nov 14, 2007 4:44 pm
Location: United Kingdom

Re: Global Debt Time Bomb explodes soon

Post by TC » Wed Oct 19, 2011 2:02 pm

Nobody, nobody, could have predicted this. Ever.
Reuters wrote: Sarkozy says euro zone talks stuck, flies to Germany

(Reuters) - Plans to tackle the euro zone debt crisis have stalled with Paris and Berlin at odds over how to increase the firepower of the region's bailout fund, French President Nicolas Sarkozy said Wednesday.

Sarkozy told French parliamentarians the dispute was holding up negotiations. He then flew to Frankfurt to talk with German Chancellor Angela Merkel in an attempt to break the deadlock ahead of a make-or-break European leaders' summit Sunday.

A French presidency source said the French and German leaders were meeting other euro zone policy chiefs and International Monetary Fund head Christine Lagarde on the sidelines of an event mark the end of Jean-Claude Trichet's presidency of the European Central Bank.

France has argued the most effective way of leveraging the European Financial Stability Facility is to turn it into a bank which could then access funding from the ECB, but both the central bank and the German government have opposed this.

"In Germany, the coalition is divided on this issue. It is not just Angela Merkel who we need to convince," Sarkozy told the parliamentarians at a lunch meeting, according to Charles de Courson, one of the legislators present.

His comments fuelled doubts about whether euro zone leaders will be able to agree a clear and convincing plan when they meet Sunday.
Quelle surprise.
KentsOkay wrote: I immediately thought about calling 911, but once we got to the T stop and got her out of her jeans, things seemed to be going a lot better.
TC's Defence of the Realm Target Download

User avatar
phil_in_cs
ZS Member
ZS Member
Posts: 11424
Joined: Fri Dec 28, 2007 4:18 pm
Location: central tx

Re: Global Debt Time Bomb explodes soon

Post by phil_in_cs » Wed Oct 19, 2011 2:27 pm

Paris and Berlin at odds over how to increase the firepower of the region's bailout fund
I read that as "the French think the Germans should put up more money and the Germans said no".
Don't confuse a belligerent and aggressive attitude with the strength, training, and conditioning needed to prevail in a fight. How do you know you have the Will To Win, if you don't even have the will to train?

User avatar
Krustofski
* * * * *
Posts: 1494
Joined: Mon Oct 05, 2009 2:40 pm
Favorite Zombie Movies: Night of the Living Dead (1968)
Location: The Teutonic Woodlands

Re: Global Debt Time Bomb explodes soon

Post by Krustofski » Wed Oct 19, 2011 4:57 pm

phil_in_cs wrote:
Paris and Berlin at odds over how to increase the firepower of the region's bailout fund
I read that as "the French think the Germans should put up more money and the Germans said no".
Not how diplomats and politicians put it, but in essence that's what happened.
Off the internet until further notice.

User avatar
raptor
ZS Global Moderator
ZS Global Moderator
Posts: 17060
Joined: Sun Mar 04, 2007 10:18 pm
Location: Greater New Orleans Area

Re: Global Debt Time Bomb explodes soon

Post by raptor » Wed Oct 19, 2011 6:22 pm

phil_in_cs wrote:
razi wrote:raptor, here's an interesting article for you.

http://www.bloomberg.com/news/2011-10-1 ... -unit.html

Apparently Bank of America transferred $75 trillion in high-risk (European) derivatives from Merrill Lynch to BoA, the latter of which is backed by the fed and fdic. the fear is that if Europe collapses, the us taxpayers will get stuck with the bill.
bloomberg news wrote:The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting
How truly wonderful.
It is a no lose situation for the Fed anyway. If B of A fails the FDIC has to pick up the prices through the insurance pool. If B of A does not fail there is no harm. The expression "a billion here a billion there and soon you are talking real money" comes to mind.
Last edited by raptor on Wed Oct 19, 2011 8:41 pm, edited 1 time in total.

User avatar
SeerSavant
* * * * *
Posts: 3607
Joined: Fri Jul 30, 2010 8:18 pm
Favorite Zombie Movies: Dawn of the Dead
28 Days Later
Serenity/Firefly (Reavers, man!)
Location: Virginia Beach

Re: Global Debt Time Bomb explodes soon

Post by SeerSavant » Wed Oct 19, 2011 7:53 pm

raptor wrote:
phil_in_cs wrote:
razi wrote:raptor, here's an interesting article for you.

http://www.bloomberg.com/news/2011-10-1 ... -unit.html

Apparently Bank of America transferred $75 trillion in high-risk (European) derivatives from Merrill Lynch to BoA, the latter of which is backed by the fed and fdic. the fear is that if Europe collapses, the us taxpayers will get stuck with the bill.
bloomberg news wrote:The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting
How truly wonderful.
It is a no lose situation for the Fed anyway. If B of A fails the FDIC has to pick up the prices through the insurance pool. If B of A does not fail there is no harm. The expression a billion here a billion there and soon you are talking real money comes to mind.
A move like this makes me think that it's more than just uncertainty in europe that triggered this...

From the same link;
Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation.
The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position.

I may have a bit of tin foil hattery creeping in here, but methinks that BOA has got some serious problems already, most publicly being the 5 dollar charge for debit card users, it seems like a return to the "trust us, we are too big to fail" idiocy...

Time will tell I guess...
Image

User avatar
phil_in_cs
ZS Member
ZS Member
Posts: 11424
Joined: Fri Dec 28, 2007 4:18 pm
Location: central tx

Re: Global Debt Time Bomb explodes soon

Post by phil_in_cs » Thu Oct 20, 2011 11:44 am

France/Germany talks stall
http://www.france24.com/en/20111019-sar ... ilout-fund" onclick="window.open(this.href);return false;

EU Summit might be delayed
http://www.reuters.com/article/2011/10/ ... X620111020" onclick="window.open(this.href);return false;

Just to note that if they delay much, Greece will default since they can't pay without more bailout money and the notes are due very soon.
Don't confuse a belligerent and aggressive attitude with the strength, training, and conditioning needed to prevail in a fight. How do you know you have the Will To Win, if you don't even have the will to train?

User avatar
TC
* * * * *
Posts: 2983
Joined: Wed Nov 14, 2007 4:44 pm
Location: United Kingdom

Re: Global Debt Time Bomb explodes soon

Post by TC » Thu Oct 20, 2011 12:49 pm

Yup:
BBC wrote: Extra euro crisis summit called

EU leaders are to hold another summit by Wednesday, because they will not be able to agree a rescue plan on Sunday.

French President Nicolas Sarkozy said all aspects of a crisis strategy for the eurozone would be discussed on Sunday and then a strategy would be adopted at the next meeting.

EU leaders need to agree a second bailout for Greece, how to recapitalise banks and a stronger bailout fund.

President Sarkozy also called for talks with the private sector.
Wonder what they'll do when they can't agree at the Wednesday meeting.
KentsOkay wrote: I immediately thought about calling 911, but once we got to the T stop and got her out of her jeans, things seemed to be going a lot better.
TC's Defence of the Realm Target Download

User avatar
raptor
ZS Global Moderator
ZS Global Moderator
Posts: 17060
Joined: Sun Mar 04, 2007 10:18 pm
Location: Greater New Orleans Area

Re: Global Debt Time Bomb explodes soon

Post by raptor » Thu Oct 20, 2011 4:19 pm

SeerSavant wrote:
I may have a bit of tin foil hattery creeping in here, but methinks that BOA has got some serious problems already, most publicly being the 5 dollar charge for debit card users, it seems like a return to the "trust us, we are too big to fail" idiocy...

Time will tell I guess...
B of A has never gotten over the serious issues it had in 2008. The change in the mark to market rule helped them with issues associated with the Countryside purchase (which was a shotgun marriage) and I suspect the reason the Fed is doing this. Stay away from B of A's debt or equity. Bank accounts there are safe so long as they stay under the FDIC limit.

J.C.
* * * * *
Posts: 1675
Joined: Sun Mar 07, 2010 12:03 pm
Favorite Zombie Movies: Night of the Living Dead, 28 Days Later, Zombieland
Location: Charlotte, NC

Re: Global Debt Time Bomb explodes soon

Post by J.C. » Thu Oct 20, 2011 4:46 pm

raptor wrote:
SeerSavant wrote:
I may have a bit of tin foil hattery creeping in here, but methinks that BOA has got some serious problems already, most publicly being the 5 dollar charge for debit card users, it seems like a return to the "trust us, we are too big to fail" idiocy...

Time will tell I guess...
B of A has never gotten over the serious issues it had in 2008. The change in the mark to market rule helped them with issues associated with the Countryside purchase (which was a shotgun marriage) and I suspect the reason the Fed is doing this. Stay away from B of A's debt or equity. Bank accounts there are safe so long as they stay under the FDIC limit.
Countrywide was nothing compared to the toxic sludge they brought on in the Merrill books. I'd prefer to not to see Banks with public debt insurance getting further involved in these complicated securities although the horse has already left that barn.
squinty wrote: Birds gotta fly, fish gotta swim, zombies gotta shuffle around and eatcher brains. Why do sharks eat divers? Why not swim around and starve to death?
Why do tornadoes zero in on trailer parks? Why not just blow around harmlessly? It's the way of the world, man.

User avatar
raptor
ZS Global Moderator
ZS Global Moderator
Posts: 17060
Joined: Sun Mar 04, 2007 10:18 pm
Location: Greater New Orleans Area

Re: Global Debt Time Bomb explodes soon

Post by raptor » Thu Oct 20, 2011 5:45 pm

J.C. wrote: I'd prefer to not to see Banks with public debt insurance getting further involved in these complicated securities although the horse has already left that barn.
Amen to both of those statements.


This certainly a joke. The EU wants to ban sovereign credit ratings. So it will be illegal for S&P to opine on a country's credit rating...yyyeeeaaah.

http://online.wsj.com/article/SB1000142 ... atsNewsTop" onclick="window.open(this.href);return false;

solarguy
*
Posts: 80
Joined: Mon Jan 24, 2011 7:38 pm

Re: Global Debt Time Bomb explodes soon

Post by solarguy » Thu Oct 20, 2011 6:26 pm

They also recently made it illegal to short sovereign debt, which is silly. It's like making it illegal for somebody to shoot you. Nice in theory, but it doesn't actually stop the bullet.

Finest regards,

troy

Post Reply

Return to “Contingency Planning & Preparation”