Comments on: All the Collateral that’s Fit to Print http://dailyreckoning.com/all-the-collateral-thats-fit-to-print/ Covering the economy, global markets and world politics. Sun, 22 Nov 2009 03:43:10 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Moon Girl http://dailyreckoning.com/all-the-collateral-thats-fit-to-print/#comment-13420 Moon Girl Mon, 29 Jun 2009 13:58:32 +0000 http://dailyreckoning.com/?p=16776#comment-13420 Deflation can be kind of fun. Just imagine waiting around for something to get cheaper and thinking, "Well, since that is getting cheaper, maybe I CAN buy those video games for the kids." Probably deflation in Japan wasn't so bad. On the other hand, inflation is very problematic. In this case one might think, "Damn it! This is getting more and more expensive every week and my pay cannot keep pace! There is absolutely NO WAY that the kids are getting video games this Christmas." Deflation can be kind of fun. Just imagine waiting around for something to get cheaper and thinking, “Well, since that is getting cheaper, maybe I CAN buy those video games for the kids.” Probably deflation in Japan wasn’t so bad. On the other hand, inflation is very problematic. In this case one might think, “Damn it! This is getting more and more expensive every week and my pay cannot keep pace! There is absolutely NO WAY that the kids are getting video games this Christmas.”

]]> By: Mars88 http://dailyreckoning.com/all-the-collateral-thats-fit-to-print/#comment-13414 Mars88 Mon, 29 Jun 2009 13:22:36 +0000 http://dailyreckoning.com/?p=16776#comment-13414 One has to put on a very serious mask when he or she begins to contemplate the horrors of inflation. Who cares if Gold goes to $8000/oz? Are you going to have enough to fight or bribe off the Praetorian Guard and/or the roaming gangs. Think History. Both the East and the West have many and highly varied examples. Qing dynasty is a good one. So is the Roman Empire. I quote from Wikipedia: "Augustus's death on August 19, 14, marked the end of the Praetorian calm. Augustus would be the sole emperor who could command the Praetorians' complete loyalty. From his death, the Praetorians would serve whatever ends they believed were to their personal benefit." One has to put on a very serious mask when he or she begins to contemplate the horrors of inflation. Who cares if Gold goes to $8000/oz? Are you going to have enough to fight or bribe off the Praetorian Guard and/or the roaming gangs. Think History. Both the East and the West have many and highly varied examples. Qing dynasty is a good one. So is the Roman Empire.
I quote from Wikipedia:
“Augustus’s death on August 19, 14, marked the end of the Praetorian calm. Augustus would be the sole emperor who could command the Praetorians’ complete loyalty. From his death, the Praetorians would serve whatever ends they believed were to their personal benefit.”

]]> By: Moon Girl http://dailyreckoning.com/all-the-collateral-thats-fit-to-print/#comment-13406 Moon Girl Mon, 29 Jun 2009 12:38:00 +0000 http://dailyreckoning.com/?p=16776#comment-13406 Deflation is a process by which wealth is drained out of the system. But overall the system will finally return to a more homogeneous state since the poor had nothing to lose since they had nothing, and the cost of necessities going down is a relief to them. The rich will still be richer, but they will probably view the world in a more humble light and thank God and the gods that at least the system was preserved. Deflation is a process by which wealth is drained out of the system. But overall the system will finally return to a more homogeneous state since the poor had nothing to lose since they had nothing, and the cost of necessities going down is a relief to them. The rich will still be richer, but they will probably view the world in a more humble light and thank God and the gods that at least the system was preserved.

]]> By: Tom A http://dailyreckoning.com/all-the-collateral-thats-fit-to-print/#comment-13304 Tom A Sun, 28 Jun 2009 18:07:16 +0000 http://dailyreckoning.com/?p=16776#comment-13304 O Great Mogambo, It pains me to say this, but for once you are wrong. Chris Dodd is not a "stupid Leftist, economically-illiterate head". He is a "Venal, Greedy, I would Kill my Grandmother right now to get Mine before I Ruin it all and I know Exactly what I am doing Leftist" (VGKGMREL). I've been ruled by these "Best and Brightest" since I was 15. All they have ever done is drive the country closer and closer to the drain. O Great Mogambo,

It pains me to say this, but for once you are wrong. Chris Dodd is not a “stupid Leftist, economically-illiterate head”. He is a “Venal, Greedy, I would Kill my Grandmother right now to get Mine before I Ruin it all and I know Exactly what I am doing Leftist” (VGKGMREL). I’ve been ruled by these “Best and Brightest” since I was 15. All they have ever done is drive the country closer and closer to the drain.

]]> By: psiceobill http://dailyreckoning.com/all-the-collateral-thats-fit-to-print/#comment-13249 psiceobill Sun, 28 Jun 2009 05:14:55 +0000 http://dailyreckoning.com/?p=16776#comment-13249 Mogambo, the clearinghouse idea will work. Actually, I have been promoting that idea for 2 years now. Currently the CBOT already has hundreds of billions of derivatives on their clearinghouse that are marked to market every day with collateral (real money, not IOUs). Not a problem. If not enough real collateral, then position is closed out or sold the next day. The only addition to the clearinghouse rule that is needed is that a rule concerning capital size of position takers would be necessary, if it is a naked position. But if a hedge position, then not necessary. ...... Another option would be to ban naked credit default swaps as too detrimental to systemic risk. All the rest could be handled on clearinghouse easily just like CBOT. ...... P.S. Did you know that a variation of this was proposed to Greenspan, Rubin, Summers and Clinton back in 1999 by Ms Born, the head of CBOT? Greenspan and others said Hell, NO. So look what we got! Mogambo, the clearinghouse idea will work. Actually, I have been promoting that idea for 2 years now. Currently the CBOT already has hundreds of billions of derivatives on their clearinghouse that are marked to market every day with collateral (real money, not IOUs). Not a problem. If not enough real collateral, then position is closed out or sold the next day. The only addition to the clearinghouse rule that is needed is that a rule concerning capital size of position takers would be necessary, if it is a naked position. But if a hedge position, then not necessary. ……
Another option would be to ban naked credit default swaps as too detrimental to systemic risk. All the rest could be handled on clearinghouse easily just like CBOT. ……
P.S. Did you know that a variation of this was proposed to Greenspan, Rubin, Summers and Clinton back in 1999 by Ms Born, the head of CBOT? Greenspan and others said Hell, NO. So look what we got!

]]> By: psiceobill http://dailyreckoning.com/all-the-collateral-thats-fit-to-print/#comment-13247 psiceobill Sun, 28 Jun 2009 05:04:29 +0000 http://dailyreckoning.com/?p=16776#comment-13247 Right on, Mogambo. But it was politicians, fraud, AND derivatives that sank us. ............. But you better hope that we don't get big deflation first for 10 years, or even our gold and silver may not save us. If only our politicians would wise up, and let a SLIGHTLY regulated capitalist system work, and get back to saving and producing (the only things that work long term). And if we would wise up and elect politicians that did not tax and spend us to ruination, like Dodd and his ilk. We need some intelligent change that will work. Right on, Mogambo.
But it was politicians, fraud, AND derivatives that sank us. ………….
But you better hope that we don’t get big deflation first for 10 years, or even our gold and silver may not save us.
If only our politicians would wise up, and let a SLIGHTLY regulated capitalist system work, and get back to saving and producing (the only things that work long term). And if we would wise up and elect politicians that did not tax and spend us to ruination, like Dodd and his ilk. We need some intelligent change that will work.

]]> By: Doug H. http://dailyreckoning.com/all-the-collateral-thats-fit-to-print/#comment-13161 Doug H. Sat, 27 Jun 2009 16:15:22 +0000 http://dailyreckoning.com/?p=16776#comment-13161 ...I'd give a hundred bucks to know the day before that the Mogambo Guru was going to be on Rush Limbaugh. The man is damn near a comic genius and his insight and raucous rebuttal of the chumps 'we' elected and continue to tolerate (Dodd, Frank, Obama and the rest of the clan) is a bright spot in my day. I knew I wasn't insane; to have my instinctive recognition of what was going on in the 'USSA' (as it's becoming) validated makes me sleep so much better! God save and protect Richard Daughty; he is a lighthouse! …I’d give a hundred bucks to know the day before that the Mogambo Guru was going to be on Rush Limbaugh.
The man is damn near a comic genius and his insight and raucous rebuttal of the chumps ‘we’ elected and continue to tolerate (Dodd, Frank, Obama and the rest of the clan) is a bright spot in my day. I knew I wasn’t insane; to have my instinctive recognition of what was going on in the ‘USSA’ (as it’s becoming) validated makes me sleep so much better!

God save and protect Richard Daughty; he is a lighthouse!

]]> By: Dennis Smith http://dailyreckoning.com/all-the-collateral-thats-fit-to-print/#comment-13134 Dennis Smith Sat, 27 Jun 2009 11:59:35 +0000 http://dailyreckoning.com/?p=16776#comment-13134 Actually, Christopher Dodd gives the word "odius" new depth and definition. You go, Mogambo. Actually, Christopher Dodd gives the word “odius” new depth and definition. You go, Mogambo.

]]> By: Lost & Found http://dailyreckoning.com/all-the-collateral-thats-fit-to-print/#comment-13104 Lost & Found Sat, 27 Jun 2009 04:27:02 +0000 http://dailyreckoning.com/?p=16776#comment-13104 Nice way to say that it was fraud and not derivatives. Nice way to say that it was fraud and not derivatives.

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