The Whole House of Cards has crumbled...
back2basicz
11/27/2011 12:31:54 PM
Guys,
The whole system known as the Global Financial System which is nothing but a Leveraged House of cards has crumbled and crumbled bigtime.
It all boils down to the Fractional Reserve System and no matter the patching efforts made in 2008 to "save" the system courtesy Hank Paulson and Geithner not much can be done now.The reason is the whole system is overloaded with Debt that only a total reboot of the system will work now.
That would mean an end to all this freeloading of productive citizens(known as the Welfare state) as well as an end to over-arching influence that the State/politicians have over us as well.Its a really good thing and should happen sooner rather than later.
The people in charge at the Federal Reserve/Congress can throw whatever they want at it,but the system is breathing its last breath right here and right now.
We need to design a new Global Financial System where No Leverage is allowed.This system will cause a gut-wrenching change initially but as people get used to and confidence grows in it we will see a New and Better Financial System arise from the wreckage of our current system.
Regards
Ashish.
Re: Judgment Day is Fast Approaching
Street Smart
11/22/2011 10:19:38 AM
@Phoenix, I wish I had more faith that meltdowns such as MF Global would jumpstart the regulatory process. Correction: I wish I had ANY faith!
I think that our regulatory agencies have gotten quite good at mopping up after the fact but as long as the impetus for true regulatory change is politically controlled from the top, I'm not holding my breath.
Re: Judgment Day is Fast Approaching
Phoenix
11/22/2011 1:25:46 AM
@street smart It does seem like its coming from all directions. A house of cards toppling because the foundations are crumbling. It looks like they were not as solid as we expected them to be.
I wonder how a recovery can be made amidst all this. Do you think there will be more regulations in place to avoid this type of things from happening in the future.
It is hard to predict what these continuous stories of fraud, abuse, and flat out criminal activity will do to future "potential" investors. Educated and experienced investors will still invest, however more cautiously but the younger future investors may eventually get completely scared away from the markets. I wonder what will the effect will be in the years to come as fewer and fewer enter the markets.
Re: Judgment Day is Fast Approaching
Street Smart
11/21/2011 10:43:49 AM
It feels like a very scary time, @Phoenix. In fact, I almost had the feeling as the deficit committee talks crumbled and the orthodoxy is that it won't even affect the markets that it's because everyone has their eyes on an even BIGGER trainwreck.
Re: Judgment Day is Fast Approaching
Phoenix
11/21/2011 10:32:02 AM
The whole system might collapse and I can't even imagine the chaos it will cause. If this is true ( and you are right when you say it has a ring of truth to it) I don't know how the markets will recover. As it is I don't think we can trust the regulatory authorities or even the backup mechanisms to be of much help.
Re: Judgment Day is Fast Approaching
tokyogai
11/21/2011 9:17:05 AM
I wonderif insurance will make up the difference if the cash can not be found?
Re: Judgment Day is Fast Approaching
Jacob
11/20/2011 10:50:25 PM
“The payout will initially go to customers who held accounts in 100% cash or treasuries on October 31”
Finally the investors can cheer up a little due to the favorable court verdict.
Re: Judgment Day is Fast Approaching
Street Smart
11/20/2011 12:39:33 PM
@PredictableChaos, thank you for Ann Barnhardt/Barnhardt Capital's POV on the logic behind not stepping in the save MF Global. Sure has the ring of truth to me!
It is also absolutely, positively TERRIFYING for me to contemplate. Of all the apocalyptic visions we have conjured over the centuries--wars, plagues, famines, meteor showers--the vaporization of the world financial system somehow seems the scariest. We won't know what hit us!
WHAT will it take to regulate these markets?
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