----- Original Message -----
From: Len Cranford
To: apopeeso@comcast.net ; pyrigenes
; Chris
D.
Sent: Wednesday, December 10, 2014 12:37 PM
Subject: Lying, Natural Law doesn`t pay attention;
{How about these LIARS and
THIEVES!!! They NEVER back down do they! Democrats [and Jews] NEVER admit
they are wrong! Include your Dog-TURD Illegal Pres.;
So while Gruber apologizes for telling the truth!
Consider, when it all comes crashing down, the tidal wave of collapse will hit
you in varying degrees depending on where you are at. In ancient Rome`s
collapse it took 30% of the populations. Today, I would expect more. See the
little video. Click the link. You all like videos. }
Want a reason to be fearful?
Leverage amplifies losses in exactly the same way it amplifies gains.
But more importantly than the impact on cash earnings is that leverage removes optionality because it encumbers your assets and, since assets are only worth what a buyer will pay for that asset, the potential for instantaneous bankruptcy with no way out of the box is very real.
That in turn, in a world where there is no One Dollar of Capital standard, means that the institution allegedly "covered" against such defaults really is notbecause they, and the supposed "insurer" in the derivative markets, do not have any money.
We should have learned this lesson in the 1980s, and then again in 2008. We did not. We the people did not demand that our government stop handing out allegedly-free "skittles" and worse we wanted everyone to "get theirs" through higher asset prices -- which in turn meant even more leverage had to be put into the system with its attendant risk.
Even today basically nobody is talking about the fact that these claims of "low risk" were not only false they were intentionally false -- that is, they're frauds.
Here it comes America, right as you demanded and, I might add, pretty-much right on schedule too, being about 7 years on from the last time.
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