Revisiting The Limits to Complexity: micro managing your way to macro collapse…

…without losing office or wealth!

PLEASE do yourself a favour and read the full article and ask yourself IF there is any basis to trust in Political and Financial institutions when THEIR agenda(s) have ensured that the handling of the financial crisis has fuelled “civil protest” and, may yet, lead to widespread unrest. By recapitalising the architects of financial collapse Governments and Regulators have allowed them to, further, profit from the economic turmoil they created and for which the weakest in society will continue to pay a heavy price for many years to come.

The graphics are my own. They have embedded links, I hope they help!

"…these same banks were also allowed to securitize many of the underlying loans, sell them off to various institutional investors and market derivative instruments to those clients who wished to gain exposure to the global sub-prime mortgage bonanza. When the greatest financial ponzi scheme known to man eventually collapsed in 2007-08 and it was clear that the global economy faced an imminent depression, governments worldwide decided to "respond".What this response amounted to was an attempt to maintain economic and financial complexity by adding on layer after layer of ever-more complex structures, and suspending/manipulating any measure of reality that was in the least bit accurate.

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Selling More CDS on Europe Debt Raises Risk for U.S. Banks – Businessweek

The US must be delighted that the rumbling crisis in Europe is deflecting (or merely delaying) calls for closer scrutiny of their own financial "smokescreen".

We are at the stage where I really doubt it matters which gerry-built financial structure collapses first! Conditions are such that these fragile structures will fall one after the other and those, whose personal and collective greed led them to steer a course intended to preserve accumulated power and wealth, will come to realise the futility of the exercise when they lose both…and more.

“Risk isn’t going to evaporate through these trades,” Cannon said.

“The big problem with all these gross exposures is counterparty risk. When the CDS is triggered due to default, will those counterparties be standing? If everybody is buying from each other, who’s ultimately going to pay for the losses?”

via Selling More CDS on Europe Debt Raises Risk for U.S. Banks – Businessweek.

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