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~ RHF

On Mar 18, 9:12*pm, wrote:
On Mar 18, 9:06*pm, Mason C wrote:

On Wed, 18 Mar 2009 18:30:39 -0700 (PDT), wrote:

There follows that tiresome canard about generous mortgages in the U.S.
causing the world collapse of the financial system.

The system collapses because it was a house of cards -- the cards were
phoney money derivatives of various sorts being used as speculation
tools. *They and their market (if it can be said to be a "market") were
of unknown real value. *When crunch came to crunch, the bankers
had assets of unknown (but inflated) value on their balance sheets.
A genuine audit (impossible) would show many of them to be far
more "under water" than any billion home owners. *They had
blown up a vast bubble ($60 trillion maybe, who knows?).

Their bubble was pricked by the mortgage devaluations.

*correct, and every time i hear some yahoo call them a asset, i stick
my finger down my throat. assets are something tangible, not a bet. i
have read that there maybe over a quadrillion dollars of these bets.
*so if these paper bets are really a asset, then they should be able
to sell them, or borrow against them. but they cannot, in most cases
they are probably worthless, and are backed by nothing.
*which means the companies that own them are insolvent, and perhaps no
amount of outside money can save them. really, its about time to force
them into chapter 7, i think its 7, where they can come out
reorganized, without the baggage of these derivative bets, and the
lousy management who allowed this.

Mason Clark
*Greater America in the Age of Rebellion*http://frontal-lobe.info/greateramerica.html
*-- many excerpts you can see --

A Bet on a Bet; hedged by a Bet against the Bet

now that truly is... against all odds ~ RHF