tag:blogger.com,1999:blog-4921988708619968880.post2415933590320770497..comments2024-02-28T22:03:57.237-05:00Comments on The Automatic Earth: More banks, much more derivativesIlargihttp://www.blogger.com/profile/09698428009501267664noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-4921988708619968880.post-76575189453028202912008-03-20T12:01:00.000-04:002008-03-20T12:01:00.000-04:00StoneleighProbably the Fed knows it can't monetize...Stoneleigh<BR/><BR/>Probably the Fed knows it can't monetize every dollar of toxic waste. It's only function is to re-inject lost confidence. I still think that's a possibility, at least theoretical. In which case, the party might resume for a while. Your thoughts?Farmerodhttps://www.blogger.com/profile/03492165772535123915noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-63859556395535005422008-03-20T07:09:00.000-04:002008-03-20T07:09:00.000-04:00Prometheus,Yes to 3 month T-bills and cash on hand...Prometheus,<BR/><BR/>Yes to 3 month T-bills and cash on hand, but I wouldn't trust the banking system, FDIC or no FDIC. Deposit insurance wasn't designed for a systemic crisis and would be overwhelmed almost immediately.<BR/><BR/>Personally, I think a 'bank holiday' is inevitable, but that doesn't mean it's imminent. Given the speed with which a crisis can proceed (in the manner of Bear Stearns, Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-40387716699711980422008-03-20T06:31:00.000-04:002008-03-20T06:31:00.000-04:00If I recall correctly, Stoneleigh suggested 3 mont...If I recall correctly, Stoneleigh suggested 3 month treasury bills and FDIC insured bank accounts. I'm not sure if we should be digging holes in the ground just yet Anon...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-82797306655324685572008-03-20T04:56:00.000-04:002008-03-20T04:56:00.000-04:00What now.I wonder.I am starting to try and keep ca...What now.I wonder.I am starting to try and keep cash in my hand,,,not in a bank..I cannot imagine the reaction by the public to shutting the banks for 24 hrs,much less a week or two.Utter "Road Warrior" chaos.Madmax,and a world ending.<BR/><BR/> A attack on Iran would give cover I think.[whoa,just scared myself]Full lockdown of society,restrict travel,round up disidents,[red list or blue list?]Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-43360983426925114632008-03-20T04:01:00.000-04:002008-03-20T04:01:00.000-04:00Yikes ... the place I buy gold & silver is shutdow...Yikes ... the place I buy gold & silver is shutdown ... due to demand.<BR/><BR/> It's one thing to talk about it coming, its another to see it arrive.<BR/><BR/>http://apmex.com/.https://www.blogger.com/profile/03915219261001181341noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-84440116308870824142008-03-19T23:57:00.000-04:002008-03-19T23:57:00.000-04:00It is time for a public central bank that uses cre...It is time for a public central bank that uses credit money. In this way money can be created despite the debt destruction.<BR/><BR/>Then this public central bank can begin retail operations in all aspects including credit. <BR/><BR/>The good news is that the derivatives in the US are concentrated in a few banks. They should be called and the settlements begin, let the chips fall where they mmckinlhttps://www.blogger.com/profile/01382007009752399000noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-35613244278618890462008-03-19T23:46:00.000-04:002008-03-19T23:46:00.000-04:00Nick,Gold, silver and oil are all down significant...Nick,<BR/><BR/>Gold, silver and oil are all down significantly from spike highs. A sharp reversal from a spike high is typical of a fear-driven commodity top. This is exactly what one would expect under a deflationary scenario - asset prices fall across the board (at least in nominal terms).<BR/><BR/>Ilargi and I have repeatedly said here that, although gold should hold its value over the long Stoneleighhttps://www.blogger.com/profile/15099878430757036461noreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-51874144485393261352008-03-19T23:26:00.000-04:002008-03-19T23:26:00.000-04:00Ilargi wrote:"Please note that the $172 trillion n...Ilargi wrote:<BR/>"Please note that the $172 trillion number Martin uses is the nominal value of the derivatives, not the market value, which is currently estimated at $750 trillion"<BR/><BR/>This is incorrect. The 172 trillion is the nominal value of the derivatives for US commercial banks only. How can the market value be 750 trillion? Think about it - then we'd have no problem at all.<BR/><BR/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-74830560646316386322008-03-19T22:35:00.000-04:002008-03-19T22:35:00.000-04:00The arrogance of the current financial 'elite' of ...The arrogance of the current financial 'elite' of Wall St. is a Black Hole of Hubris, the likes of which the world has never seen. B52 Ben must be sh*tting bricks by now. It's 'double or nothing' derivative day. An iteration of doubling down on a double down on a double down... It's that insane.<BR/><BR/>Frankly, most Hail Mary passes don't work, and that is what Ba,Ba, Benny and the Jets are Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-44594056953031088542008-03-19T22:10:00.000-04:002008-03-19T22:10:00.000-04:00That website also recommends gold- down $100 this ...That website also recommends gold- down $100 this week.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4921988708619968880.post-20521278224733559412008-03-19T21:59:00.000-04:002008-03-19T21:59:00.000-04:00Thanks for the blog Ilargi and stoneleigh. I am al...Thanks for the blog Ilargi and stoneleigh. I am always giving out this addy. I worked in a bank for 14 years or so and one of the people I knew started the bank down the path of derivatives. The bank lost big I understand the first time out. One of the people that recommended the action was Sue Bies. I saw her sitting next to Greeny when he retired. I wonder what she says to helicopter ben nowbicycle mechanichttps://www.blogger.com/profile/17008971495294158347noreply@blogger.com