Comments on: Unraveling the language of finance http://www.feralscholar.org/blog/index.php/2007/08/25/unraveling-the-language-of-finance/ Making the Connections Wed, 08 Feb 2012 20:52:47 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Charles http://www.feralscholar.org/blog/index.php/2007/08/25/unraveling-the-language-of-finance/#comment-120296 Charles Thu, 13 Dec 2007 16:28:06 +0000 http://feralscholar.org/blog/?p=536#comment-120296 December 11, 2007 THE OTHER DERIVATIVE PROBLEM By Nathan Lewis By now everyone can recite how crummy mortgages got packaged into asset-backed securities, and how, after the tastier tranches were sliced off, the meat by-products got sent along to the CDO sausage factory to be made palatable again. Now CDO investors are puking up all over town. But there has been another derivatives party going on, where the bubbly is still flowing to a large extent. That, as many will relate, is the explosion in credit default swaps (CDS) that has appeared over just the past few years. Structured finance has been around since the 1980s, but the CDS market is essentially brand new. http://lists.econ.utah.edu/pipermail/a-list/2007-December/069588.html December 11, 2007
THE OTHER DERIVATIVE PROBLEM
By Nathan Lewis

By now everyone can recite how crummy mortgages got packaged into
asset-backed securities, and how, after the tastier tranches were
sliced off, the meat by-products got sent along to the CDO sausage
factory to be made palatable again. Now CDO investors are puking up all
over town.
But there has been another derivatives party going on, where the
bubbly is still flowing to a large extent. That, as many will relate,
is the explosion in credit default swaps (CDS) that has appeared over
just the past few years.
Structured finance has been around since the 1980s, but the CDS
market is essentially brand new.

http://lists.econ.utah.edu/pipermail/a-list/2007-December/069588.html

]]> By: Charles http://www.feralscholar.org/blog/index.php/2007/08/25/unraveling-the-language-of-finance/#comment-119481 Charles Tue, 11 Dec 2007 21:59:57 +0000 http://feralscholar.org/blog/?p=536#comment-119481 >December 7, 2007, Counterpunch >Wall Street's Bad Boys and Their Washington Enablers >Banksters Gone Wild >By PAM MARTENS > > > For an in depth analysis of the problem that goes beyond the evil doings of a few bankers, read my 5-part Pathology of Debt - http://henryckliu.com/ Henry C.K. Liu >December 7, 2007, Counterpunch
>Wall Street’s Bad Boys and Their Washington Enablers
>Banksters Gone Wild
>By PAM MARTENS
>
>
>
For an in depth analysis of the problem that goes beyond the evil doings
of a few bankers, read my 5-part Pathology of Debt – http://henryckliu.com/

Henry C.K. Liu

]]> By: Charles http://www.feralscholar.org/blog/index.php/2007/08/25/unraveling-the-language-of-finance/#comment-112561 Charles Tue, 27 Nov 2007 15:59:09 +0000 http://feralscholar.org/blog/?p=536#comment-112561 Liu on the meltdown http://www.atimes.com/atimes/others/Henry.html Liu on the meltdown

http://www.atimes.com/atimes/others/Henry.html

]]> By: Charles http://www.feralscholar.org/blog/index.php/2007/08/25/unraveling-the-language-of-finance/#comment-106533 Charles Sun, 18 Nov 2007 16:33:30 +0000 http://feralscholar.org/blog/?p=536#comment-106533 http://countercurrents.org/hensman171107.htm http://countercurrents.org/hensman171107.htm

]]> By: Charles http://www.feralscholar.org/blog/index.php/2007/08/25/unraveling-the-language-of-finance/#comment-106507 Charles Sun, 18 Nov 2007 15:20:06 +0000 http://feralscholar.org/blog/?p=536#comment-106507 Economic pessimism http://www.rgemonitor.com/blog/roubini/227330 Economic pessimism

http://www.rgemonitor.com/blog/roubini/227330

]]> By: Christine http://www.feralscholar.org/blog/index.php/2007/08/25/unraveling-the-language-of-finance/#comment-103656 Christine Wed, 14 Nov 2007 02:30:38 +0000 http://feralscholar.org/blog/?p=536#comment-103656 Iran & the subprime mortgage meltdown. Is there any connection? Or: why on earth would Washington care about Iran, while our financial system is cratering? I believe our banking system, along with the mortgage industry and all related entities, are completely bankrupt and without value. Very similar to a very large log laying in the forest. From a distance, it looks solid; a very nice looking cedar which has tipped over. When you come to the tree, however, you lift off a piece of bark. The bark crumbles like dust. Under the surface, the wood has been turned to sponge, or powder with gazillions of bugs crawling inside the tree. The banking system is trying desperately to keep a lid on this crisis. It's getting tougher to hide it, though, because the gangrene is spreading throughout the system. We've already seen some big indicators that something is seriously wrong with the system. Northern Rock Bank in the U.K., the U.S. housing market, it all points to the same thing: a Hologram system which vanishes if you turn it to one side. Banking. Bankers know that Image is incredibly important to their survival. Belief in the system is critical, and they typically give an image of being ultra-conservative, prudent and solid. That's why they often use images which give a permanent image, like rocks (Northern "Rock", Prudential which has the Rock of Gibraltar as its icon), permanence, solidity, what could be more permanent than a rock? The bank just needs to be prudent with their depositors' money and not be engaged in risky behavior, and they should be just fine. All the customer asks is that the bank doesn't gamble with their money. What the banks have done these past few years qualifies as reckless gambling, and bordering on self-annihilating. Buying up all that garbage called SIV's, CDO's and the like. They deserve to go belly-up, that's how much Riverboat Gamblers they've been. Iran. So what does this have to do with Iran? Stan, I'm going to agree with you on your take with Iran. You had written a while back that you did NOT believe the U.S. will wage war with Iran, for a number of reasons. We're not in a good position to be dropping bombs on Iran right now. The ramifications would be too dire, and Cheney knows it. The perceived payoffs for doing so are less than the cost of doing it. I believe they are beating the war drums in an effort to deflect attention from the upcoming meltdown. Notice how parallel the developments are? In fact, one day I heard a radio report about the mortgage crisis, how it's spreading. JUST TWO MINUTES later, there was a report from Cheney warning Iran once again that "nothing is off the table". I read European newspapers, and there is hardly anything about Iran. In fact, Iran is seen in friendly terms. The Swedish newspaper Dagens Nyheter, in fact, recently ran a series of articles about Iran. It was about "Iran - Lovely travel destination". It was about upcoming tours, "Iran - filled with History" type of thing. Iran = a great big huge DISTRACTION. Iran & the subprime mortgage meltdown.
Is there any connection?
Or: why on earth would Washington care about Iran, while our financial system is cratering?
I believe our banking system, along with the mortgage industry and all related entities, are completely bankrupt and without value. Very similar to a very large log laying in the forest. From a distance, it looks solid; a very nice looking cedar which has tipped over. When you come to the tree, however, you lift off a piece of bark. The bark crumbles like dust. Under the surface, the wood has been turned to sponge, or powder with gazillions of bugs crawling inside the tree.
The banking system is trying desperately to keep a lid on this crisis. It’s getting tougher to hide it, though, because the gangrene is spreading throughout the system. We’ve already seen some big indicators that something is seriously wrong with the system. Northern Rock Bank in the U.K., the U.S. housing market, it all points to the same thing: a Hologram system which vanishes if you turn it to one side.
Banking.
Bankers know that Image is incredibly important to their survival. Belief in the system is critical, and they typically give an image of being ultra-conservative, prudent and solid. That’s why they often use images which give a permanent image, like rocks (Northern “Rock”, Prudential which has the Rock of Gibraltar as its icon), permanence, solidity, what could be more permanent than a rock?

The bank just needs to be prudent with their depositors’ money and not be engaged in risky behavior, and they should be just fine. All the customer asks is that the bank doesn’t gamble with their money.
What the banks have done these past few years qualifies as reckless gambling, and bordering on self-annihilating. Buying up all that garbage called SIV’s, CDO’s and the like.
They deserve to go belly-up, that’s how much Riverboat Gamblers they’ve been.

Iran.
So what does this have to do with Iran?
Stan, I’m going to agree with you on your take with Iran. You had written a while back that you did NOT believe the U.S. will wage war with Iran, for a number of reasons. We’re not in a good position to be dropping bombs on Iran right now. The ramifications would be too dire, and Cheney knows it. The perceived payoffs for doing so are less than the cost of doing it.
I believe they are beating the war drums in an effort to deflect attention from the upcoming meltdown.
Notice how parallel the developments are?
In fact, one day I heard a radio report about the mortgage crisis, how it’s spreading. JUST TWO MINUTES later, there was a report from Cheney warning Iran once again that “nothing is off the table”.

I read European newspapers, and there is hardly anything about Iran. In fact, Iran is seen in friendly terms. The Swedish newspaper Dagens Nyheter, in fact, recently ran a series of articles about Iran. It was about “Iran – Lovely travel destination”. It was about upcoming tours, “Iran – filled with History” type of thing.
Iran = a great big huge DISTRACTION.

]]> By: Charles http://www.feralscholar.org/blog/index.php/2007/08/25/unraveling-the-language-of-finance/#comment-102936 Charles Tue, 13 Nov 2007 00:18:02 +0000 http://feralscholar.org/blog/?p=536#comment-102936 By Ellen Brown Why the relentless push for war with Iran? The nuclear weapons explanation is suspect. The most important impetus for war may not be oil or the bomb but that Iran has managed to escape the heel of an international clique of private bankers. We may be involved in a war of banking schemes, with Iran’s innovative interest-free banking model pitted against the compound interest trap that has captured most of the world in debt. http://www.opednews.com/articles/1/opedne_ellen_br_071109_behind_the_drums_of_.htm By Ellen Brown

Why the relentless push for war with Iran? The nuclear weapons
explanation is suspect. The most important impetus for war may not be
oil or the bomb but that Iran has managed to escape the heel of an
international clique of private bankers. We may be involved in a war of
banking schemes, with Iran’s innovative interest-free banking model
pitted against the compound interest trap that has captured most of the
world in debt.

http://www.opednews.com/articles/1/opedne_ellen_br_071109_behind_the_drums_of_.htm

]]> By: Charles http://www.feralscholar.org/blog/index.php/2007/08/25/unraveling-the-language-of-finance/#comment-102903 Charles Mon, 12 Nov 2007 23:27:43 +0000 http://feralscholar.org/blog/?p=536#comment-102903 NY Times, November 8, 2007 Markets and Dollar Sink as Slowdown Worry Increases By MICHAEL M. GRYNBAUM and PETER S. GOODMAN Stock markets plummeted and the dollar sank to a record low against the euro yesterday as investors worldwide grew skittish over rising oil prices and the prospect of a substantial economic slowdown in the United States. <a href="http://www.nytimes.com/2007/11/08/business/08econ.html?ex=1352178000&en=db28e8fc3415bab1&ei=5088&partner=rssnyt&emc=rss" rel="nofollow">FULL ARTICLE</a> MODERATOR'S NOTE: When posting long articles, please post enough to give us the flavor, then add the link from the source. This can be done in one of two ways. Just paste in the link, where we see the illuminated url, or link it in the tex (as above) by typing <href =" THEN the url THEN close it with a "> (all this to the left of the linked word or phrase). On the right of the linked word or phrase, put in < , then /, then a, then >.... all together.</href> NY Times, November 8, 2007
Markets and Dollar Sink as Slowdown Worry Increases
By MICHAEL M. GRYNBAUM and PETER S. GOODMAN

Stock markets plummeted and the dollar sank to a record low against the euro yesterday as investors worldwide grew skittish over rising oil prices and the prospect of a substantial economic slowdown in the United States.

FULL ARTICLE

MODERATOR’S NOTE: When posting long articles, please post enough to give us the flavor, then add the link from the source. This can be done in one of two ways. Just paste in the link, where we see the illuminated url, or link it in the tex (as above) by typing
(all this to the left of the linked word or phrase). On the right of the linked word or phrase, put in < , then /, then a, then >…. all together. ]]> By: Charles http://www.feralscholar.org/blog/index.php/2007/08/25/unraveling-the-language-of-finance/#comment-100968 Charles Fri, 09 Nov 2007 17:00:25 +0000 http://feralscholar.org/blog/?p=536#comment-100968 it struck my fairly objective ear (never having been either a CP member or a CP hater) as rote marxist credo; and if I want rote marxist credo or even somewhat more interesting recent Midrash on Marx, I would go to wsws (which I sometimes do and encourage others to do). ^^^^^ CB: Actually, the rote marxist credo would be _The Origin of the Family ( male supremacist family), Private Property, and the State_ , which takes the position that male supremacy predates capitalism. So, actually you agree with the rote marxist credo on that point. The rote marxist credo on racism,i.e. white supremacy, is that it originates with capitalism. And that is historically accurate. That is the rote marxist credo on both of these issues happens to be true as well as rote marxist credo. Whether it is interesting or Ho Hum is an individual thing. However, boredom vs interesting is not necessarily a good guide to what's true. (smile) ^^^^^ FS is not wsws. I endorse Stan’s decision to redact the piece, ^^^^^ CB: Radact all you want. It's your blog. I can bring water. I can't make people drink it. ^^^^^ and I’m also — a rare occurrence — exercising my editorial powers and cutting off this boyshit wrangling betwixt the two of yez right here if you want to point readers to classical or “canonical” material or canned essays, imho post a link, and save the screen space for more original, in-process, interactive thinking. reciting the Nicene Creed over and over again does not, it were, advance our theology.] ^^^^^^^^ CB: I'm not advancing theology. You and Stan's _mantra_ and chanting over and over again that I am does not make it so. The percentage of my posting original discussion is at least as high as anybody else's, probably on the high end. it struck my fairly objective ear (never having been either a CP member or a CP hater) as rote marxist credo; and if I want rote marxist credo or even somewhat more interesting recent Midrash on Marx, I would go to wsws (which I sometimes do and encourage others to do).

^^^^^
CB: Actually, the rote marxist credo would be _The Origin of the Family ( male supremacist family), Private Property, and the State_ , which takes the position that male supremacy predates capitalism. So, actually you agree with the rote marxist credo on that point.

The rote marxist credo on racism,i.e. white supremacy, is that it originates with capitalism. And that is historically accurate.

That is the rote marxist credo on both of these issues happens to be true as well as rote marxist credo.

Whether it is interesting or Ho Hum is an individual thing. However, boredom vs interesting is not necessarily a good guide to what’s true. (smile)

^^^^^

FS is not wsws. I endorse Stan’s decision to redact the piece,

^^^^^
CB: Radact all you want. It’s your blog.

I can bring water. I can’t make people drink it.

^^^^^

and I’m also — a rare occurrence — exercising my editorial powers and cutting off this boyshit wrangling betwixt the two of yez right here if you want to point readers to classical or “canonical” material or canned essays, imho post a link, and save the screen space for more original, in-process, interactive thinking. reciting the Nicene Creed over and over again does not, it were, advance our theology.]

^^^^^^^^

CB: I’m not advancing theology. You and Stan’s _mantra_ and chanting over and over again that I am does not make it so.

The percentage of my posting original discussion is at least as high as anybody else’s, probably on the high end.

]]> By: Charles http://www.feralscholar.org/blog/index.php/2007/08/25/unraveling-the-language-of-finance/#comment-100964 Charles Fri, 09 Nov 2007 16:39:37 +0000 http://feralscholar.org/blog/?p=536#comment-100964 personally I stopped reading — with a big Ho Hum — as soon as I got to the bit where capitalism is the cause of patriarchy and racism (both of which predate capitalism by millennia, except in the strangely ahistorical imagination of the CP faithful). ^^^^^ CB: The things I posted didn't say capitalism is the cause of patriarchy and racism. Also, racism does not predate capitalism. Racism and capitalism come into the world together. Engels discusses the origin of male supremacy way before capitalism, before feudalism , even. I'm pretty sure the CP takes the same position on that as Engels. So, ......? personally I stopped reading — with a big Ho Hum — as soon as I got to the bit where capitalism is the cause of patriarchy and racism (both of which predate capitalism by millennia, except in the strangely ahistorical imagination of the CP faithful).

^^^^^
CB: The things I posted didn’t say capitalism is the cause of patriarchy and racism.

Also, racism does not predate capitalism. Racism and capitalism come into the world together.

Engels discusses the origin of male supremacy way before capitalism, before feudalism , even. I’m pretty sure the CP takes the same position on that as Engels. So, ……?

]]>