Why the Worlds Major Banks are on the Verge of Collapse, page 3
Pages: <<  1    2    3    4    5    6  >>
ATS Members have flagged this thread 125 times


reply posted on 9-10-2008 @ 04:40 PM by stander
The article that OP posted is biased: it implicates AIG as an inventor of a hedge called "the credit default swap." That's not true. It was JP Morgan execs who became unhappy back in 1990s with so much inactive reserve money. So they began to dig a loophole . . .

By the mid-'90s, JPMorgan's books were loaded with tens of billions of dollars in loans to corporations and foreign governments, and by federal law it had to keep huge amounts of capital in reserve in case any of them went bad. But what if JPMorgan could create a device that would protect it if those loans defaulted, and free up that capital?
What the bankers hit on was a sort of insurance policy: a third party would assume the risk of the debt going sour, and in exchange would receive regular payments from the bank, similar to insurance premiums. JPMorgan would then get to remove the risk from its books and free up the reserves. The scheme was called a "credit default swap," and it was a twist on something bankers had been doing for a while to hedge against fluctuations in interest rates and commodity prices. While the concept had been floating around the markets for a couple of years, JPMorgan was the first bank to make a big bet on credit default swaps. It built up a "swaps" desk in the mid-'90s and hired young math and science grads from schools like MIT and Cambridge to create a market for the complex instruments.


There are not too many 25-year-old guys who would be allowed to go through $300 billion in loans to asses the risks. It's a cool story.



reply posted on 9-10-2008 @ 05:00 PM by bdswetty
reply to post by Alexander_Supertramp



Right on.. now let's start the executions. These greedy people have caused more harm and distress than any murderer ever to enter the electric chair or noose.

I guess that's not really an eye for an eye (this is a Christian nation, after all..?). I think Guantanamo bay with specialized torture techniques for 10-20 years straight should do the job.


reply posted on 9-10-2008 @ 05:05 PM by moocowman
reply to post by rufusdrak



Totally agree with you dude, I highly recommend Zeitgeist Addendum for those whov'e not yet seen
Link -video.google.com...


reply posted on 9-10-2008 @ 05:50 PM by Anonymous ATS
This is is mostly pointless, since no on can do anything about it and the worst is still to come but, I was a Retail, Commercial and Investment Banker over a 32 year period having starting with then Talman Home Federal Savings of Chicago in the late 70s where I became a SRVP and "Short Sword" to the then President (names don't matter) but I was active in the decisions that resulted in the creation of some refer to as the Wholesale Mortgage Lending Market/Conduit.

This is a very long story that I am not in the mood to tell but, basically our decision at Keystone in 1979 resulted in the guy who mows your lawn or sold you your used car becoming what you know as your "Mortgage Broker"....I would like to refer to them as the unwashed, uneducated, unscrupulous used car salesmen scum of the world but, many of them are you brother, mother, aunt, uncle or as I said, the guy who used to mow your lawn; so I am not going to name call, only convey the contempt I and others always had for them. However, these "Brokers" were only one part of the demise of the Mortgage Lending Industry, as we could not have destroyed ourselves without the help of many others, including but not limited to the Homebuilders who built Zero Lot Line 3,000 Sq Ft cracker boxes all over the country and made it possible for Juan Valdez and pretty much anyone to buy them.

No, the demise of the America has taken a lot of work from many people, from all walks of life. After all, America wanted "Equality" and "Equal Opportunity" for all but, the reality is, none of you were raised up, everyone has been brought down...much like the education system; the standards have been brought down to include everyone or most everyone, even when and where their best use and potential was digging a ditch. I am an MBA with an Engineering Degree, having always been at the top of my class; this is not really much to brag about in light of what I was competing with (am I getting my point across?)

If you haven't watch the Video Documentary "The Money Managers", you need to in order to get what I am going to say in total here you can find it here:
video.google.com...#

So let's see, how do I tell you the truth and maybe ATS won't censor it?

I am a descendant of a family that came here with Capt John Smith in 1607; I not only know who my father was but, we are very much aware of our family going back 2,400 years and yes, there are 4 kings in my bloodline and many famous and infamous men in my tree that included Slave Owners and Indian Killers, Industrialists and Military Heros . Trust me when I tell you that the America the Founding Fathers had in mind is not the America we have today; many of you would still be slaves; there would be no Gay Marriage and a long list of other things so many are proud of but which would have you hanging from a tree were George Washington the President. Hold on, I am not putting George Washington on a pedestal; it is a known fact in my family that Washington was a "Kept Man" who dressed up and looked right for the job more than ever having any great strengths or character but, someone needed to be the figure head and he wouldn't shut up until he was given something important to do, so they let him. Do your own history search. Also, do a search of Abe Lincoln and you will find that Abolishing slavery was NOT in his game plan until the north was losing.

Fact is, what most of you believe is America is mostly Lies and Myths. The truly heroic, noble, honest and forthright men died for what they believed in. Something you might remember when being so impressed with McCain. But, a maybe more important point to make here is that if and when we had a President that was honest, forthright and truly acted in the best interest of America and the American people, he was killed/assassinated. Yes, I am telling you that all our Presidents with few exceptions were bought and paid for liars, cheats, thieves...


reply posted on 9-10-2008 @ 08:58 PM by cpdaman
Originally posted by stander
The article that OP posted is biased: it implicates AIG as an inventor of a hedge called "the credit default swap." That's not true. It was JP Morgan execs who became unhappy back in 1990s with so much inactive reserve money. So they began to dig a loophole . . .

By the mid-'90s, JPMorgan's books were loaded with tens of billions of dollars in loans to corporations and foreign governments, and by federal law it had to keep huge amounts of capital in reserve in case any of them went bad. But what if JPMorgan could create a device that would protect it if those loans defaulted, and free up that capital?
What the bankers hit on was a sort of insurance policy: a third party would assume the risk of the debt going sour, and in exchange would receive regular payments from the bank, similar to insurance premiums. JPMorgan would then get to remove the risk from its books and free up the reserves. The scheme was called a "credit default swap," and it was a twist on something bankers had been doing for a while to hedge against fluctuations in interest rates and commodity prices. While the concept had been floating around the markets for a couple of years, JPMorgan was the first bank to make a big bet on credit default swaps. It built up a "swaps" desk in the mid-'90s and hired young math and science grads from schools like MIT and Cambridge to create a market for the complex instruments.


There are not too many 25-year-old guys who would be allowed to go through $300 billion in loans to asses the risks. It's a cool story.



yes JP Morgan are the head de-generates but they are PROTECTED they are the favorite sons on Wall street.

This article is not blaming the Basel II regulations , it is blaming the poor loans made by banks and the CDS insurance AIG gave out to create a loop hole to get around basel II, in order for them to satisfy there greed and desperation to keep expanding the credit bubble.


reply posted on 9-10-2008 @ 09:32 PM by Perseus Apex
reply to post by Power_Semi



Watch the Zeitgeist Addendum posted here on ATS for more. I've posted endlessly on the topic. The truth is out there. Congratulations for seeking it. Thats the first step.

[edit on 9-10-2008 by Perseus Apex]


reply posted on 9-10-2008 @ 09:50 PM by Matyas
reply to post by Perseus Apex



Thanks a billion for editing that before I got to it....


One world monetary is not such a bad thing, in light of encountering other economic systems...
Pages: <<  1    2    3    4    5    6  >>    ^^TOP^^



USDA Forces Whole Foods To Accept Monsanto
  Posted 10 days ago with 99 member flags
Greece wipes out Citizens Debt!! Tells Bankers to suck it
  Posted 11 days ago with 78 member flags
The Collapse of The American Dream Explained in Animation
  Posted 18 days ago with 53 member flags
Obama on the verge of a deal with the banks
  Posted 16 days ago with 23 member flags
EU financial dictatorship agreed to by EU ministers last night
  Posted 18 days ago with 17 member flags
Bankers requesting that Greece become their debt slaves
  Posted 14 days ago with 15 member flags

Newest topics getting replies, in real-time:

Hollow Earth Theory New Evidence.
  General Conspiracies, Posted 17 hours ago, 123 replies
Anonymous show your face!
  Rant, Posted 14 hours ago, 68 replies
ATS's Gutter-rats and the 90+ intro thread
  Rant, Posted 17 hours ago, 36 replies