13 replies to this topic

[SemiBizz]

I am afraid the relationships with banks you cite changed in 2008, when effectively they became bankrupt entities...

 

These are fiat banks, with the most worthless aspect of them being that no matter how insolvent they may be on their own activities..

 

Big Sister/Brother is there to bail them out of their wrecking-ball actions...

[jjc]

I am afraid the relationships with banks you cite changed in 2008, when effectively they became bankrupt entities...

 

These are fiat banks, with the most worthless aspect of them being that no matter how insolvent they may be on their own activities..

 

Big Sister/Brother is there to bail them out of their wrecking-ball actions...

 

 

I could be wrong here but it seems to me the argument that the US exchanges are being supported by money pouring in from abroad seeking security has a lot of merit.

 

Let me provide a high tech analogy: 

Cisco during the heady early days of internet routing would push innovative (but very buggy) products out. They would fix the problems very quickly and would market their equipment with the mantra "We suck less". No-one would ever loose a job because they bought a Cisco router that later caused a network outage because they were 1) responsive and 2) the leader in the industry.   The US financial system plays a very similar role for the world and is 1) why it attracts the capital and 2) why it is resilient to shocks (i.e. 2008). 

[OEXCHAOS]

That's a passable analogy.

 

 

 

I am afraid the relationships with banks you cite changed in 2008, when effectively they became bankrupt entities...

 

These are fiat banks, with the most worthless aspect of them being that no matter how insolvent they may be on their own activities..

 

Big Sister/Brother is there to bail them out of their wrecking-ball actions...

 

 

I could be wrong here but it seems to me the argument that the US exchanges are being supported by money pouring in from abroad seeking security has a lot of merit.

 

Let me provide a high tech analogy: 

Cisco during the heady early days of internet routing would push innovative (but very buggy) products out. They would fix the problems very quickly and would market their equipment with the mantra "We suck less". No-one would ever loose a job because they bought a Cisco router that later caused a network outage because they were 1) responsive and 2) the leader in the industry.   The US financial system plays a very similar role for the world and is 1) why it attracts the capital and 2) why it is resilient to shocks (i.e. 2008). 

 

[SemiBizz]

Well, I'm in technology, so I remember this pretty well, and the way it was with Cisco - they were the only game in town...

 

They were the "Gorilla" Stock at the time...  I don't see your analogy... they had a monopoly on the business...You did not have another choice.

 

Now the Central Bankers?  Do they have other purposes for all that cash?  Yes they do...

 

 

 

 

Just WHAT do you think those Central banks are going to do when DB hits the Fan?

 

And... maybe that liquidation is already UNDER WAY...

 

Hmmmm?

 

Flat out, I am telling you that 2008 is a CAKE WALK compared to what is going to happen to Europe and... #1 supplier to Europe... CHINA...