subprime - it takes a cartoon to understand this stuff...
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Thread: subprime - it takes a cartoon to understand this stuff...

  1. #1
    Have a look at this c ar toon powerpoint, its a nice illuion of exactly what goes on from the credit m ar kets:

    http://docs.google.com/TeamPresent?r...7skipauth=true

    this isn't only totally hil ar ious, but it also present s s ome very sensible lessons for investors. As you men have seen recently, I'm a large fan of breaking down m ar ket mechanics into their simplest form to expose the mathematical reality of this tool, m ar ket, order etc etc. there is no way to turn shit into worth, as is flawlessly illued in this c ar toon. If you put shit in, you get shit out, there is no way ar. Men and women get when those wallstreet geniuses simple matters, thats why we a so prudent duped s peculators appraise instruments, and must remain skeptics.

  2. #2
    Quote Originally Posted by ;
    ... If I was alone on an island or if we were trying to reconstruct after some catastrophe, what good would dollar bills or bonds do anybody? Not one...
    You could always burn off'em to keep warm if you were on that island.
    And in a crisis, based on the number of you were holding, you could exchange them as kindling with other survivors for other now valuable things...
    that would provide them new value after stated catastrophe.

    But, that only goes to prove your point, that really, they have no inherent value, only perceived value. And that value does really change based on the circumstances, environment... and climate

    Sorry, only trying to make your points easier to understand for a economics dimwit like myself.

  3. #3
    Very enlightening for me. . .and hilarious.
    Item that worries me now. . .will Australia head down the same path?

  4. #4
    Thanks for posting this Merlin, I got a great laugh out of it. Already forwarded it on to boot.

    As you said, garbage in, garbage out. A number of this stuff actually makes you scratch your head and ask, Why are a lot of these individuals in control of such important things when they're obviously stupid?

  5. #5
    Rofl

    poor assumption my frigid Norwegian ass!

  6. #6
    Quote Originally Posted by ;
    Very enlightening for me. . .and hilarious.
    Item that worries me today. . .will Australia head down the exact same path?
    Actually, I have heard some reports that a bit of it's hitting Australia. It has become a dent in Europe as well. The shockwaves will be felt worldwide on this one. Go USA! Lol

  7. #7
    Quote Originally Posted by ;
    Actually, I've heard some reports that a bit of it's hitting Australia. It has become a dent in Europe as well.
    That was my principal prediction at the beginning of 2008....the remainder of the world is going to go through exactly what happened in the US. Lets remember that greenspan was leading the inflation fight 12 months before trichet!

  8. #8
    It's often said that when the US sneezes then Australia ches a chilly.

    I think you guys are right. . .once upon a time it had been hard to get a loan here and they are being supplied on the rear of the Cornflakes box!!!

  9. #9
    Quote Originally Posted by ;
    It is often said that when the US sneezes then Australia ches a cold.
    So yeah, my idea is somewhat cliche, but I think subprime will go one step further. Fund is currently a global operation... only a decade ago matters were extremely different. These banks are working on a global scale and their ideas, techniques and strategies are spread like a plauge that was international. So im not so much saying australia (or any other country) will be effected with the weak US market, im more saying that the exact schemes that went on in the US credit market were used by the world, its only that the US got exposed first. We have already seen this in recent news, and I believe this is just the iceberg's tip.

  10. #10
    Quote Originally Posted by ;
    so yeah, my thought is a bit cliche, but I think subprime will go one step farther. Finance is currently a worldwide operation... just a decade ago things were extremely different. These banks are operating on a global scale and their thoughts, strategies and techniques are spread just like a plauge. So im not so much saying that australia (or any other nation ) will be effected with the weak US market, im more saying that the exact schemes that went in the US credit market were used by the planet, its just that the US got exposed first. We have already seen this in recent news, and I think this is just this iceberg's tip.
    I think that the furthering of the pain comes in the shape of a certain small pill called foreign exchange. We offered a huge number of those loan packages and they're starting to get struck with the blow-by and it's going to be a really stinging sensation for some time.

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