Investors: The $1 Billion Armageddon Trade Placed Against The United States

This is such a stupid non-issue. I saw a chart the other day of who the US debt is owed to.
Hah, 40% is owed to the Fed itself. 40%!!! So we owe 40% of our debt to ourselves.
The states, US banks, US hedge funds, and some US investors make another fat percentage
of that debt pie. So in effect, we're still owing ourselves. The Japanese own more of our debt
than the chinese do.

This whole thing is retarded and chicken little non-sense.

The politicians have discovered this little nugget fear and are playing it out as best they can.
Now what are they really doing, because this is really a non-event.

reply to post by jimrat201


This type of trade is called an option. There are options for every month out to more than a year. Basically, if I think Apple (now at $400) is going to rise to $425 by September 15th, I can place an option to buy it at the current price by the 15th ($25 profit per share). It also works the other way around. If i think Apple will fall to $375 by October 15th, I can place an option to sell it at the current price by October 15th. Now, if i'm wrong, i'm out the price of the option (usually between $5-$60), but if i'm right, i make a profit.

I think what most people don't know is that options were illegal before 2000. In 2000, it was made legal again, and directly impacted the collapse of Lehman Brothers and crisis of 2008.

Watch this video for more info:
www.cbsnews.com...

Being brand new here I need some help. I am trying to read the Armageddon Bond article. When I click on the article it brings me here. I see the part where it says "click on link to read full arttcle" where is the link??

Thanks!

Well...

Can anyone be surprised at this? The ENTIRE world is falling apart.
Oil and paper can only be a house of cards for so long. Eventually margin calls have to be made and the emperor will truly be seen in his nakedness!

Just gotta look at ALL of the military movements in the country. And what REALLY scares me most is the foreign troops ready to move in. THEY won't have a problem shooting us!

Originally posted by RichardSweats
Well...

Can anyone be surprised at this? The ENTIRE world is falling apart.
Oil and paper can only be a house of cards for so long. Eventually margin calls have to be made and the emperor will truly be seen in his nakedness!

Just gotta look at ALL of the military movements in the country. And what REALLY scares me most is the foreign troops ready to move in. THEY won't have a problem shooting us!

So the world only sprung into existence when we discovered oil? How on earth did we live before oil.

Regardless, I would argue Oil is not a fossil fuel and also sustainable and also not hitting peak oil.

en.wikipedia.org...

www.viewzone.com...

reply to post by RichardSweats


I can believe it. The US credit rating was lowered in April of this year. I guess someone forgot to tell Obama. Oh Yeah, it was lowered because of the UNSUSTAINABLE spending. Nothing more!

reply to post by poet1b


Yea, because they are the ones that created this debt crisis in the beginning. Wake up.

One billion dollars is nothing, especially in digital currency.

There is no such thing as credit ratings or nations, it's like believing in cartoons or wrestling.

Please come back to reality people, all that exists are things. If an idea is a thing, than it exists merely in our minds as electrochemical impulses or what have you.

I understand the fake system and fake belief all of this topic is discussing but after awhile I just cannot entertain such fantasies and take them seriously.

Now all of you need to calm the hell down, there is plenty of more fake money to cover the fake debt. The printing press only needs electricity to run, and the coal power plant has plenty of coal stocks to operate.

Everything will be fine, now go back to your video games.

Insider trading???

Maybe it's Eric Cantor !

CNN (cable TV) is reporting that even if there is a debt deal, the US credit rating could still be lowered.

Interesting.

reply to post by jimrat201



IF YOU ADD UP THE TOTAL NUMBER OF CONTRACTS MENTIONED BELOW (OVER 8 THOUSAND) THE TOTAL REQUIRED MARGIN IS LESS THAN $25 MILLION DOLLAR AS THE MARGIN REQUIREMENTS ARE LESS THAN $2,000 PER CONTRACT. THAT'S REALLY NOT A BIG DEAL SINCE THE BOND FUTURES MARKETS CAN ABSORB MUCH MORE THAN THAT AS FAR AS TRADING SIZE. COULD BE A HEDGE FUND OR SOME HOT SHOT CTA FIRM. NO BIG DEAL IN COMPARISON. BUT WHO KNOWS? HEY WHAT DO I KNOW? THE SCENARIO IS FAR WORSE THAN ANYTHING THIS COUNTRY HAS EVER FACED BEFORE. WE HAVE NOT BEEN HERE BEFORE SO WE HAVE NOTHING TO COMPARE IT TO. WE ARE IN NO MANS LAND.

crazy.... america is broke, so they say. yet someone in our own fvcking money system placed a billion dollar bet against us!?

lucky im not in charge of that #. that money would have been
"lost" like all the "ppls" money have been lost over decades.

Have been reading ATS for several years but never got a login. I always get horrified by the financial related posts.
I DO WORK with futures,and I do work with Treasury futures. With all respect this post is totally BS. 5,000 contracts is a relatively large order but nothing about billion dollars bet. Peace.

If this is true then it smells like Soros to me, he announces he is getting out of the Bond market just before the debt bomb blows, and now this bet on a default from a mysterious investor for 1 billion dollars a week before his bond market announcement. Not everyone has a billion dollars or the inclanation to bet against a currency i mean Its not like he has done things like destory currencys or markets before, thats right he has. Just a thought, alright, let the savaging begin for daring to impune grandpas character and being a right wing wako, liberty loving scum i am.

This is just another steaming shovelful of misinfo in anattempt to lead us around by the nose because we are incapable of safely watching over ourselves. Here's your 4 month old proof!

www.marketwatch.com...

www.abovetopsecret.com...

reply to post by Surfrat


Surfrat

Would you buy pound (sterling) ££££ now.... 27th July 2011 @ 4pm GMT........?

I see sterling as the more valuable european currency when compared to the Euro...... If the Euro survives it will be in two forms.......... And I am thinking the £ will be the more valuable ''upper'' euro and the current euro will be the currency of the PIGS nations...

Regards

PDUK


PS - the Dollar is F**************

specifically it is called a PUT option, this is where you bet on a company to swing into a negative drive.

I would have my money on the Bush Family.

Funny thing is every 10 years something drastic happens on planet earth. We know hwhat happened in 2001, 1991 gulf war and iraq nuclear weapons cache was revealed by UN documents. In the 80's CNN was born, The 1st launch of a space shuttle (Columbia) , Pac-Man is introduced in the US and sparks a huge craze. , 52 American hostages released in January after 14 months in captivity in Iran, Regan starts toying with the Libyains, and deploys ships in the Gulf of Sidra, which Libya claimed rights to even though no one else recognized it as theirs. Regan assassination attempt....
in teh 70's besides vietnam, there was also another significant factor in the 70's the growth in women's rights and women's role in society including the ability to decide when where and if they wished to have children.

It's 2011 people we are long overdue for something catastrophic!!!

I understand this is my first post, but I have been a lurker on this forum for quite a while...I enjoy this site because it is interesting as well as a great tool while bored at work....guess where I work?

Wall Street...you guys are being ridiculous about this topic...it is a hedge fund betting against a US downgrade..it is not a big deal because from AAA we will go to AA which is still the highest in the world....this debt topic is ridiculous

Not to attack but you guys should read up on the industry before coming to conclusions....the illuminati is not betting against the US default...it is a hedge fund ran by someone who wants a risky return

I can see a few guys who may or may not have vested interests in the economy crashing further.
After all, like that sunken submarine, we are sitting on the ledge of an economic trench much deeper than the ocean fault.
We go over that final precipice, and down we go to eventually be crushed like an egg shell.
Theres lots of people with a spare billion dollars who would happily spend it on the further degradation of confidence in the US ability to pay its debts.
Perhaps its just Murcochs revenge....he must have made a bundle on the phone scandle....think about it....
guilty but profitable.

Context is everything, brothers and sisters.

Wall Street bets, that is what they do.

Nothing is made on Wall Street, nothing is consumed.

They are but looking through a window onto the business of the world.

America will be fine, Americans, ditto.

These bets go on all the time.

It is probable that our credit rating will drop, but that doesn't mean we're all going to lose our jobs, or another Great Depression.

It means we are given the ability to review everything we spend money on, and make some adjustments.

We will come back leaner and meaner, with less waste.

Such is the nature of the free market system.

Do your homework!