Goldman Sachs posts $1 billion profit, page 1

I tell you all if Goldman Sach is posting only 1 billion earnings they are in big trouble.

And this is why.

This days banks and financial institutions rely on the liquidity that is infused when peoples pay rolls hit the banks or when people's transfer funds for their retirement accounts in the markets, this also includes large sums (or that is what we hope for) of government future retirement accounts.

But while peoplethink their money is safe and secure and backed by the government with the promise of a pay off, that is not so.

In todays economy everything is a gamble and the big firms that holds all that wealth are gambling peoples investments everyday while making sure they get a pay off first and using one account to pay for another accounts of their investors money to cover the gambling shortcomings.

This is call Hypothecation a crafty way that financial houses are now using to play with your investments and is all legal.

For those that doesn't have a clue how it works this will make you very angry and worry once you learn the truth.

Read my words, nobody's money or investments are safe and is not guarantee that is going to be where you think it is if the economy in the EUzone collapse that include retirement accounts from government to private, SS and anything else related.

Hypothecation is what it's called when a borrower pledges collateral as a means of securing a debt. The borrower retains ownership of the collateral but it is hypothetically under the control of the creditor who can seize possession of the collateral if the borrower defaults.

If a client has $10,000 in securities on deposit and a debt deficit of $2,000, the net equity is $8,000. This means the broker-dealer could rehypothecate up to $2,800 of client assets to finance its own activities - often without notice.

Not only is this legal, it's common practice specified in the fine print of most brokerage agreements.

If you've ever traded on margin, chances are you're in the game whether you want to be or not because any common stock, cash, or other securities - even gold and Chinese yuan - can be used as collateral that the broker can hypothecate or rehypothecate.

And that's where the real games begin.

moneymorning.com...

That is why the Federal Reserve is so obsessed with liquidity and why the US with the fed and the IMF is bailing out with tax payer moneys the EU to keep them from crashing, if they crash all the investments, retirement, SS and everything attach to it, will be no more, because liquidity is in Wall street none existent.

Just remember the last investment firm that crashed was MF Global and investors lost everything, they were just a small branch of the big two Goldman and JP

All the big broker firms that we know like MF Global, Goldman Sachs Group Inc. (NYSE: GS), Canadian Imperial Bank of Commerce (NYSE: CM), the Royal Bank of Canada (NYSE: RY), Credit Suisse Group AG (NYSE ADR: CS), Wells Fargo & Co. (NYSE: WFC), and Morgan Stanley (NYSE: MS) more frequently establish U.K.-based investment pools and lateral assets from other jurisdictions like the U.S into them, do this, and the only reason they are getting bold about it is because they own governments like the US to back up their loses with tax payer money.

edit on 18-1-2012 by marg6043 because: (no reason given)