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Originally posted by ats__fan039
Sounds interesting, I do believe it.
Steve Quail apperently talked to a high ranking millitary offical who told him that on Oct 7th, 2008, the US was minutes away from full marial law in America.
By the way, and sorry for three posts in a row and my ignorance...who is Steve Quail? I am not familiar at all...clue me in?
[edit on 14-2-2009 by burntheships]
Originally posted by Electro38
It interesting how a lot of people were saying this whole mess started with the housing market bubble, and some are still saying that. But now the pres. and others are starting to blame the banks solely.
Members of congress were saying it was our fault, aka. the little people for our bad credit habits and the housing bubble... I always thought that sounded strange. I think it was just a good excuse or diversion, since these things were happening concurrently.
We should all demand to know what really happened. It seems like it was a gigantic scam perpetrated on us.
A credit default swap is, essentially, an insurance contract between a protection buyer and a protection seller covering a corporation’s, or sovereign’s (the “referenced entity”), specific bond or loan. A protection buyer pays an upfront amount and yearly premiums to the protection seller to cover any loss on the face amount of the referenced bond or loan. Typically, the insurance is for five years. Credit default swaps are bilateral contracts, meaning they are private contracts between two parties. CDSs are subject only to the collateral and margin agreed to by contract. They are traded over-the-counter, usually by telephone. They are subject to re-sale to another party willing to enter into another contract. Most frighteningly, credit default swaps are subject to “counterparty risk.”
At the exchange rate yesterday (Wednesday), 35 trillion British Pounds was equivalent to U.S. $62 trillion (hence, the 35 trillion Pound gorilla). According to the International Swaps and Derivatives Association, $62 trillion is the notional value of credit default swaps (CDS) out there, somewhere, in the market.
If the party providing the insurance protection - once it has collected its upfront payment and premiums - doesn’t have the money to pay the insured buyer in the case of a default event affecting the referenced bond or loan (think hedge funds), or if the “insurer” goes bankrupt (Bear Stearns was almost there, and American International Group Inc. (AIG) was almost there) the buyer is not covered - period. The premium payments are gone, as is the insurance against default.
The U.K. banking system was within three hours of collapse on Oct. 10, days before the government announced a bailout for banks, City Minister Paul Myners told the Times newspaper in an interview.
Major depositors tried to withdraw from a number of large banks, and were willing to pay penalties for early withdrawal, the newspaper cited Myners as saying.