Do you honestly believe this?
Is this why the Bear Stearns debacle occurred, because of purely imaginary notional funny money? Is this why Bernanke and Paulson are sweating bullets?
Do you honestly believe this?
No. I do believe that outrageous claims of hellfire based on notional values is stupid.
Is this why the Bear Stearns debacle occurred, because of purely imaginary notional funny money?
Bear and every other WS denizen is flying on collateralized borrowed money. There's nothing wrong with that until the counter parties freeze up. Why do they freeze up? Because of irrational fear. Once upon a time WS firms didn't have credit departments because it was all repo. Then Drysdale Securities blew up and couldn't make interest payments on its repo book. Now WS has designated credit officers who have to approve repo counter parties - even though each transaction is delivery vs. payment and collateralize with government securities or something equivalent.
BSC is hardly the first debacle. Remember the dot com pop after the Fed started tightening, the Orange County, Cal blow up after the Fed tightened in 1994? The S&L crisis makes all this look like a picnic.
Is this why Bernanke and Paulson are sweating bullets?
Who says they are?
Do you honestly believe this?
What I believe is that the Armagedden idea is an endorphin release for a lot of petty people.
Actually they do treat it like funny money, monopoly money
I'm sure they have all kinds of insider jokes about how hard it is to respect electronic notations as real money. It's like a woman going on an inane shopping spree with credit cards. The credit card is her funny money. Hard to treat as real money
Also these Wall Street rats are making tens of millions each year on these rackets which is so intoxicating. This makes them loose track of what's real as far as money