My way of fighting the fed, I cannot sit still anymore

You're saying banks wrote a boatload of puts, and their downside exposure is ~50 Trillion?

What are the strikes relative to housing prices now?

 

I don't know what makes up the $50 Trillion. I only use that number because I have read about various amounts ranging from $50 Trillion to $250 Trillion. Most of this stuff is off balance sheet and not traded electronically so no one really knows.

Greenspan talked about directives and counterparty risks various times in testimony to Congress. It was a big concern of his.

Everything ends up in the Banks sooner or later which is why I say the banking system is the counterparty.

I don't know how they relate to housing prices.

Here is so info on it that I just came across searching on the internet.

http://www.investorsinsight.com/otb_va_print.aspx?EditionID=619

John

 

Thanks, jficquette.

I'll take a good look.

 

Wrong, it is about the supplemenation of iffy collateral with bad collateral to increase the credit supply.

Also, credit creation is NOT the basis for economic growth... it is the basis for increasing the money supply.

 

Don't fight the Feds. Its no use. They own you and your grand parents destiny!

 

Try fighting the City Hall first... Feds are two steps above them.

 

You think your wimpy starch collared Congressman can fight the Chairman of Federal Reserve Bank? LOL!

They report to nobody, not even the President of United States. They own your balls and they own all the money in this country!

 

Don Quixote charged at the windmills ...you too can do it!

 

TRANSLATION: I want the stock market to keep going down so I can short at every opportunity and scalp nickles and dimes and buy myself Jim Beam and fall asleep on my cheap linoleum floor.

 

TRANSLATION: IF feds do not cut rates, market will keep going down and I can keep shorting at every opportunity enough to buy a pint of Jim Beam and waste myself on the cheap linoleum floor.