Think back, do you remember Lehman Bros.? How about MF Global and more recently PFG Best? What do they all have in common? Yes, they all went bankrupt you are correct but…what they ALL had in common was “how,” or more to the point HOW FAST they went bankrupt. All of these entities literally went belly up within a week’s time. But how does a firm “just go bankrupt” … overnight? Easy, other firms begin to pull money out at the same time that no one will “lend” to them in the overnight markets. With 20 or 30 to 1 leverage, the milk spoils pretty quickly!
Now, we have Knight Capital in the exact same situation and it has been reported that they are looking for a buyer. They lost $440 Million (chump change in today’s world) when their “algo” trading system “malfunctioned” 2 days ago. There is speculation as to the how’s and why’s, I don’t really care. There is speculation on the conspiratorial level that this is just another “rehypothecated vacuum cleaner” being used to force people out of their commodity contracts or to steal client money, (I hope not and feel for the customers) but this I believe is losing sight of the much MUCH bigger picture.
If these firms (along with Merrill Lynch, Coutrywide Mortgage, AIG and many more back in 2008) can become insolvent within 5 trading days and close their doors, what does that say? While reading this piece, please keep in mind that financial institutions now “mark” their assets to whatever they please no matter how farcical the price. I would venture to say with few exceptions, none of the firms that have gone under were considered “at risk” a month or two before their doors were closed. So, looking at the situation from a “systemic standpoint” you must ask yourself “what is to stop this type of scenario from happening to the whole system “overnight” and not just firm by firm?”.
The answer…very simple, the printing presses. Central banks will create as much money as necessary, whenever necessary to prevent a systemic default. Yes I know, I sound like a broken record but this is what will happen because there are no other alternatives. Please think long and hard about this topic because your financial lives depend on it. We know that the system is over leveraged, we know that ALL the monies (currencies) are based on and backed by all of this debt, we know that governments have always responded (including the last 4 years) by debasing their currency. We know all of this yes, yet people are still depressed because their Gold and Silver is “down”. You can see the falsehoods everywhere and you know what the government responses have been. You also know what those responses will do to the currency and that in a collapsing currency, what it does to the precious metals value’s. Don’t let boredom, frustration or fear separate you from your insurance!
America is systematically being destroyed, by Central Bankers, but, hey let’s stand by Israel (created in 1948, by Rothschilds -) whatever the cost in American lives, $$, and liberties lost. Oh, and no need to prosecute the very banksters who intentionally wrecked the economy so that they could be bailed-out, with TRILLIONS in American tax payer $$, because we are in a ‘recovery’, and Netan-YAHOO! is going to start a war on Iran, to BLAME FOR the coming complete economic collapse, and ensure either zionist ass-kisser Obama or Romney get “elected” in Nov., so that Amerika will continue in lock-step with Israel, right into OBLIVION. Bye, bye Ron Paul, Bye, bye Bill of Rights, Bye, bye, U.S. Constitution, hello global corporate police state slave plantation.
“Despite encouraging viewers not to pay attention to a person’s race in determining whether or not they may be a terrorist, almost all of the scenarios in the clip proceed to portray white people as the most likely terrorists. Bizarrely, nearly every single one of the “patriotic” Americans who reports on their fellow citizen is either black, Asian or Arab (but, not “Jewish”). Imagine if the video had portrayed every terrorist as an Arab and every patriotic snoop as white, there’d be an outcry and rightly so, yet this strange reversal must have been deliberate on the part of the DHS, but why? Is this merely political correctness taken to the extreme or is something deeper at work?”
Meet The New Terrorists: Conservative Americans
The Neoconservative War Criminals In Our Midst
The companies mentioned in this article announced bankruptcy on one particular day, but they have been bankrupt from from the day they came into existence. Any business or government (including the US and EU)that operates under a credit based money system (where the total debt is always greater than the money needed to pay it off)is, by definition, bankrupt from its inception. It all boils down to the question of when the bankruptcy will be officially declared and announced to the world.
That was sort of my point, EVERYTHING is bankrupt. The financial institutions mark to fantasy, if they did not they would have to admit insolvency…the entire system would have to admit to insolvency. By extension, because the currencies are based on and grounded on debt…they are “insolvent”…worthless.