That’s the fact:
Once a deposit is made at the bank, itâ€™s no longer your property. Itâ€™s the bankâ€™s.
What you own instead is a promise from the bank to repay. Itâ€™s an unsecured liability. Thatâ€™s a very different thing from owning physical cash stuffed under your mattress. Yet, 99.9% of people conflate the two.
Cash deposited into the bank technically makes you a creditor of the bank. Youâ€™re liable to get burned should the bank make a bad bet and get into trouble. The risk is not insignificant. Most banks gamble with their customer deposits on risky investment fads like mortgage-backed securities.
The lie about to whom the deposits belong. It’s an credit and so you never do savings in a banking account you always do investing.
Ah well yes, lowering standards, that will do…
for anyone who knows simple truths and is not working for/in government or parties. Hindering free trade does not work. It had not worked in the past, it does not work in the present and it won’t work in the future.
Anyone who just visited this blog just once and read more then around 10 entries, could have seen that even someone like me could see it coming.
And here we go: Bubbles. I’ve never been in China, but if they do think building houses is creating wealth, well then they are total idiots. The problem is not house building, but having houses to be build and live in. What value has an empty house? It does not serve anyone, well it may serve someone to make losses, but I’m not sure how “nice” the governments worldwide react on constant losses.
And yet there is another bubble waiting to burst YASB (yet another stock bubble). The indices in the developed countries are beyond any “real” meaning. They just have rissen with the cheap money which do not finds any other profit generating opportunity. There is the new money from the central banks and it has to go somewhere. The debts are way to high worldwide and so the people really start getting more and more cautious. The theft worldwide is on the raise also, which means people must keep their money away from where it can be confiscated as easy as on banks. And there we are. People still would like to get what they like but they hesitate, because they feel that something in the air.
It’s the smell of demise. And it’s the smell of slavery. Of course it’s not named and treated as such bit the effects are the same. People do work for banks which ask for interest on nothingness. What a brilliant idea. You have to pay interest on things the bank do not even own. And you just can get your freedom if you do not depend on credit. As soon as you take the first credit for immediate subsumption, you are a looser. And this means a total looser, the only valid thing to take credit for is for something to help you earn your living. Credit for things of the daily life, just means they got you.
And still people do it over and over again. They go into slavery and are even gladeful to the slaveholders. Nothing is more dangerous for freedom but stupid and happy slaves.
Now you may be suprises leverage under different circumstances do have a different meaning.
Meaning if used by politicians: “more fire power”, hardly “more” risk, telling markets stories of drunkeness and cruelty sorry, sedation. It’s just for the “bigger” good. Just well the base for this leverage still is money they do not have in the second case this is named differently, here it is named saving the taxes of the population.
Meaning if used by not politicians, greed, high risk if done with money on does not have speculating on credit. Ah yes Lehmann was gone because of leverage but you see leverage is not leverage every where.
In short the politicians use what the doom in the private economy. To be true, I guess we have to go back far in time to find a similiar decision day in parliament. Last time it ended in WW II.
Deledefs is just to kind to this kind of men…..
will be a catastrophe.
I don’t know how many times we now have to read about “saving” Greek and the szenarios get more devastating with evey try. Just for the flat lie: “We must save Greece otherwise hell will break loose”
There is not other word for that than black-mailing. I wrote about it yesterday and now it’s that all politicians do it. And that is so disgusting, that no word really is unfriendly enough to describe that.
The possibilities are obvious. Given another round of this time more cheaper credits to “buy” older more expensive credits back. Even that can not work. If one does not sell one’s bonds, one has will get back 100% of it, but in a default. One can say well if I can sell now for 50% of it’s value I’ do that. So be it but there will always be people not doing it. So what?
So in fact there is no way to get out of it without defaulting. But even then the papers still are “valid” claims. So Greece will not get any money from the capital markets and still is unable to get along without any other debt. They will need transfer payments and this just is illegal. There’s not legitimated government in Euro land and sorry, we see it everywhere transfer payments simple do not work. The only way for the Greek is, cutting down their expenses to their income. Anything which does not follow that is just stealing. We will not help them while taking more of their expenses on our invoice.
I’d put no pressure in any way on the Greek. I just would deny them any further credit. There is no “right” to get credit in any law. We can help if they want but for that they have to take the first steps, we just have to wait. If the actions will be sound, people will invest in Greece if not, so be it. It’s their land, ain’t it?
Here’s what I think will come from it. They will tell us Greece will get the hardest imaginable conditions, and that it’s our duty to help. Otherwise Greece and short after EU will get to hell. We’ll offer another few hundred billions for them and will hear there’s no choice. We’ll hear that the private sector will have to bear some of the costs also and they will look into the camera with puppy-eyes like a dog. And say we fight for the EU citizens against the speculates. We have to ..
The have to because they are absolutly clueless or even worth they do not want to miss one strip of their power an dictatorship. Bastards is much to friendly phrase for them, they are looters, and sorry I can not help it assholes.
Greece finance minister warns, if the EU let Greece down.
Guess what Greece alone has 330 billion of debt. and if they fail the end will come. Well hell one might think “Finally”
All EU countries have debts beyond imagination and beyond anything in history (even after wars) and they are “suprised” that this won’t work.
That it could work is as likley as extinguish a fire with a flame-thrower. I’m really getting mad about this Bastards. They have accepted all kind of debts for
the most stupid things one can imagine. They tooks tons of money for other things from th e EU. (I bet no street was build on Greece costs alone the last 10 years)
They made working for the government profitable as nothing else, all in the clea knowledge they do not have the money to pay that all.
So in fact they’ve lived beyond any limit on the costs of all creditors, just to rip of everyone in that country. I’m so angry, that I’m not even able any more to
write anything decent. I wish all the Politicians and Bureaucrats over there a hell of time. Take that you looters.
English banks reduce their exposer to EU risks:
1:100 that Merkel and Sarkozy will name them speculates. Or traitors or such
Greeks history is near record breaking for defaulting. Just read “This time is different” and you’ll see I’m taking this out of the blue.
Much more interesting is that defaulting seems to correlate very nicely with corruption. For this beeing able to read German check:
Togehter with this time is different you’ll see the probabiltiy of Greek defaulting is very high and because of the sell of of bonds one can see, all but the deledefs think a default is inevitable.