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alstry (34.92)

The New American Loser Society

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August 18, 2009 – Comments (23)

Now in American Business, you are a winner to Wall Street if you are a Loser.....as long as Wall Street can sell SWAPs against your debt.  The MORE you lose, the higher the value of your swaps and the more banks can make by selling them.  Who cares about the stock.....why should Wall Street care about a $10 Trillion dollar stock market when they can sell HUNDREDS of Trillions of dollars of SWAPs to our pension funds and cash in with unprecedented profits.

But in order to conceal the profits, all you have to do is write down trillions of defaulting debt and dump them on the taxpayer through the TARP and TALF programs.  It is a great way to rob America of its wealth and have America subsidize the theft at the same time.

But if you are going to steal from the sheeple in broad daylight, you have to give them a bit of medication to soothe the pain.  Welcome to High Frequency Trading where most of the volume on the Stock Market are a few colacated computers trading back and forth to each other manipulating the market and reaping massive profits for the firms that own those computers.

The problem comes in if you are a "legitimate" business that actually has to earn money to support your business and those that work for you, or a municipalitiy or state government that depends on tax receipts from those businesses and citizens and MUST balance your budget...you are screwed as there is no one to back stop you.

Even though trillions in debt is defaulting, the reported PE of the S&P is now over 140, millions of businesses and families are going bankrupt, our cities are being forced to shut down, pension funds are running out of money due to the manipulation of SWAPS......the citizens are cheering on the losses as Obama has inherited the most difficult business climate to ever confront an American President.

If Obama keeps spending trillions that does not exist, soon America will be accused of counterfeiting by the worlds central bankers and our currency will decay into worthless paper.  Or he will have to tell America we are out of money and contront decades of reckless borrowing.....most of which was incurred in the last eight years due to the creation and Fed support of Credit Default Swaps.

It is amazing how Wall Street now rewards losing as a means to enrich itself through SWAPS.  Unfortunately, our citizens, private businesses, and municipalities are failing as a consequence.  Few understand the relationship at this point, but as the decay continues, tens of millions will feel the effects of the Zombulator and the Zombulation policies.

It is not too hard to see where this is heading.....just wait until your pension fund manager tells you how low your pension has become as America's pensions are handing over your retirement to Wall Steet bankers.  You still think this is a joke?  Just go ask Jefferson County, AL officials what happened to its government as a result of BIG losses on SWAPS....or ask shopping center owners what is happening to their tenants.

What an irony, the nation that was founded on the principals of rewarding hard work, innovation and winning.....has now morphed into a society where bankers profited from infecting our nation with a debt load it can never repay under the current policies.

Prepare.......9.09 is getting closer.

Once you understand the relationship between credit default swaps and the destruction of the American economy, you will undertand Alstrynomics.

 

 

23 Comments – Post Your Own

#1) On August 18, 2009 at 11:51 AM, ocsurf (< 20) wrote:

Good info Alstry. I'm finding your blogs mor informative nowadays.

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#2) On August 18, 2009 at 12:03 PM, alstry (34.92) wrote:

It is time for Alstry's role to change....somebody will have to represent the American people and defend them from the Zombulator.


"The current pension costs are unsustainable long term and changes need to be made," said 3rd District Councilman Gary DeLong. "There needs to be a significant amount of discussion before deciding what those adjustments should be. This is the beginning of that process."

The sad part is few appreciate how bleak the outlook will be once the Zombulator takes all they have.....and there is little prospect for income with current zombulation policies as the bankers laugh all the way to China and India.

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#3) On August 18, 2009 at 12:03 PM, mliu01 (< 20) wrote:

But who is going to pay the CDS? someone has to lose. And where these money will come from?

Well if you are GS, you don't have to worry, Cause you can decide which one to live and which one to die.

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#4) On August 18, 2009 at 12:56 PM, alstry (34.92) wrote:

mliu,

Just as the loan is about to default, right after the banks have reaped billions in premiums, the swoop in and save the debt by giving the money losing company even more.  By paying off the old debt, they are  no longer obligated to pay off on the swaps.

A similar result could happen if they just inject a few hundred million into the business to make it look solvent again......the swap premiums would contract materially.

The bankers get to control the swap premiums and whether the debt defaults or not....it is sort of like insider trading but few are aware of the behavior....for now.

Remember Standard Pacific.......billions were made trading to swap.....so when enough premiums were generated selling swaps, a fund came in to pay down the debt on a company that should have gone bankrupt years ago.

If you competitor building against SPF, you never had a chance because SPF  could build at a loss so long is it had an unlimited lifeline.

The executives never gave a damn because they were drawing hugh salaries selling homes at a loss.

The real losers were the private builders trying to compete and the homeowners who watched their home values decline as SPF kept lowering the prices of homes they were selling as management had to keep the losing show going for the benefit of its financiers.

The longer this nonsense lasts, America will end up being a nation where it is practically impossible to make a profit and feed its citizens.

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#5) On August 18, 2009 at 1:13 PM, davejh23 (< 20) wrote:

"But who is going to pay the CDS? someone has to lose."

Why not declare them illegal and void?  Bankers have created a quadrillion dollar market out of what should be illegal.  Destroy the market entirely, and let the banks lose.

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#6) On August 18, 2009 at 1:53 PM, bridgeboy0 (30.28) wrote:

Tic-Toc...  Tic-Toc...

Prepare.......9.09 is getting closer.

Do you know where your excuse is?

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#7) On August 18, 2009 at 2:03 PM, TheClub55 (< 20) wrote:

Davejh23 - I agree the market ticker has been talking about the same thing, the two big recs are to...

- Declare all SWAPS, etc. w/out counterparty risk void

- Have the remaining traded in an open and regulated market, so we can discover ture pricing.

 

 

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#8) On August 18, 2009 at 2:22 PM, alstry (34.92) wrote:

Denninnger gets it....

http://market-ticker.denninger.net/archives/1344-Will-It-All-Come-Tumbling-Down.html

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#9) On August 18, 2009 at 2:50 PM, JerseyShoreGirl (< 20) wrote:

This is just outragous ...

New York Magazine: Inside the Financial Collapse of Annie Leibovitz How did Annie Leibovitz end up $24 million in the hole?

And she even had ties to Goldman Sachs, imagine that!  I heard the writer of this piece today on the radio .. when asked how she'll get out of this situation ($24mm debt), he said, "Oh, I'm sure they'll figure something out for her."  Unlike the little guy, the unimportant loyal taxpayer leading a simple life ... Annie Leibovitz must fall into the category of 'too big to fail' too! 

http://gawker.com/5339375/inside-the-financial-collapse-of-annie-leibovitz

 

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#10) On August 18, 2009 at 3:08 PM, AdirondackFund (< 20) wrote:

@ Alstry

 

That Denninger article is right on cue.  He needs to present that in Video Format.  It's an important statement and should morph to the most accessible form of media.  Just my opinion.  More should be done explaining this reality.  Ignorance is not Bliss when the white wolf pays it's visit come winter.  

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#11) On August 18, 2009 at 4:08 PM, starbucks4ever (97.43) wrote:

"why should Wall Street care about a $10 Trillion dollar stock market when they can sell HUNDREDS of Trillions of dollars of SWAPs to our pension funds and cash in with unprecedented profits."

Oh, come on! Out of 100 American retirees, you won't find even one who will stay with a pension fund that invests in SWAPs. They can sell this junk to themselves, or maybe to Bernanke, but they can't sell a cent's worth of SWAPS to pensions funds, end of story.

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#12) On August 18, 2009 at 4:27 PM, alstry (34.92) wrote:

ZLOJ,

Last time I checked, pension recipients have no input into what their pension funds invest in.....nor can they choose to opt out of one pension and go into another.

Once you find out your pension is broke, it's too late.

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#13) On August 18, 2009 at 5:18 PM, Rebkong1 (< 20) wrote:

do if i have a guarnateed annuity independent of my employer that has a 3.5 M dollar foundation to a guaranteed lump sum pay out and interest payments yearly in the future..you are saying that i will lose this??? even the company backing this fund is insured? and i am protected by law that even if they were to fold i would lose the guarnatee of the lump sum payments and interest payments ..but still would recoup the 3.5 M (or whatever its worth due to market ..its sitting in money market fund right now)

 

you are saying i could lose that 3.5M? 

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#14) On August 18, 2009 at 5:22 PM, Rebkong1 (< 20) wrote:

let me retype that sorry

 

i have a guaranteed annuity that has an underlying asset value of 3.5 M that is guaranteed in 10 y ears to pay me a lump sum and yearly payment of interest payments...is this at risk?? 

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#15) On August 18, 2009 at 5:25 PM, alstry (34.92) wrote:

The annuity is as good as the insurance company backing it....the insurance company is as good as the loan portfolio it holds.....if Obama prints enough money to bail out every insurance company, whatever money you get from your retirement account, it likely won't buy very much.

You can either go bankrupt by devaluing currency or go bankrupt by defaulting on debt......the latter protects savers, the former screws all.

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#16) On August 18, 2009 at 8:04 PM, LydiaVorst (< 20) wrote:

From Denninger's article:

 Why aren't those people in Washington DC?  Whether they have to hitchhike, carpool, take a bus - why aren't they on the steps of the Capitol?  Why aren't they on The Mall?  Why have these millions of individuals who have been screwed, blued and tattooed by the thieving ways of the banksters and fraudulent accounting that our government and "business interests" have engaged in not shown up to press their demand for redress of grievances?

There is a March on Washington on 9/12/2009? http://guest.cvent.com/EVENTS/Info/Summary.aspx?e=5ba072d3-891d-494d-9cfa-3b2c73399c53

"Let us disappoint the Men who are raising themselves upon the ruin of this Country."

- JOHN ADAMS .

 

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#17) On August 18, 2009 at 8:05 PM, LydiaVorst (< 20) wrote:

and another link:

 http://912dc.org/

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#18) On August 18, 2009 at 9:04 PM, Rebkong1 (< 20) wrote:

alstry,

 

it is my understanding that if the insurance company were were fold then the annuity (with the underlying value of the assets at that time ) would still be mine...by law they can't take that is what i am aware of 

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#19) On August 18, 2009 at 11:00 PM, alstry (34.92) wrote:

Your child can be taken during time of war.  Your property can be taxed more than its worth.  Your dollars can be devalued to the point where they are not worth the paper they are printed on.

In the end it all comes down to trust.....do you trust?

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#20) On August 18, 2009 at 11:40 PM, Rebkong1 (< 20) wrote:

property taxed more than its worth? you have an example of that?

 

and i n ever trust the government 

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#21) On August 18, 2009 at 11:49 PM, alstry (34.92) wrote:

I  can give you dozens.

There is lots of land out there that was once thought to be very developable that is now basically worthless....but property taxes can be in the hundreds of thousands per year.

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#22) On August 19, 2009 at 11:34 AM, Rehydrogenated (32.20) wrote:

I lost a ton of money on cemex (cx) who lost over $200 million in a quarter because of their off balance sheet swaps. It nearly bankrupted their company and the swaps had nothing whatsoever to do with cement. Whatever banks did to convince execs to buy these POS swaps should be illegal.

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#23) On August 19, 2009 at 11:45 AM, AdirondackFund (< 20) wrote:

This from Elliot Spitzer today.  Article entitled "The Stock Market is for Suckers". He explains the thievery and what might be done to stop it.

http://articles.moneycentral.msn.com/Investing/Extra/is-stock-market-still-a-chumps-game.aspx

Maybe Spitzer has been reading our blogs and has taken note of what is being said here.  He certainly refers to many of the issues raised here.  Let's hope something gets done to fix the problems.  That would be change we can believe in.  

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