negative credit events are soo interesting. Thanks for opening my mind to the credit default swap, and the insurance thing. Sounds like the next event crisis. It never ends. shorting is coool
@Thunderwavia You don't know the half of it: As bad as the subprime problem is, wait until the collapse of sovereign debt which is why I used the Parthenon in Athens, Greece, the cradle of Western Civilization as the backdrop to my primer video explaining how CDOs are used as speculative tools and will collapse nation states. Now a full year-and-a-half later and the rest of the world is starting to catch on the Greece may also become the cradle of the demise of Western Civilization.
Watching Greece falter will be like watching a train wreck that takes two to five years to unfold before they default on their sovereign debt. Yesterday yields were running up to almost 30% on Grecian bonds, reflecting the high risk of default. The take away is that the Grecians dont have in intestinal fortitude to spend less money and pay down their national debt and so they will inevitably default.
@EricTheOracle yes i viewd read some on the PRO Leftist riots in Greece angry over loosing their government money, just a small number now, about 25 percent of the entire workforce there is government jobs actually, the economy is based on unproductivity, BUT with the 30 bill euro from Germany, that would keep the Greek government/economy running a few years, though I figure due to the lack of intestinal fortitude needed by Greece to change as you say, that German money will run out and default
Credit Default Swap = fire insurance. Over estimate the value of the loss then create a default (arson). You can make a lot of bucks with financial arson.
The target deserves to be shorted because they were over-leveraged or unaware of what their leverage exposure was or is. The shorting plan works like this:
1) Find an institution that is in trouble or so convoluted that it doesn't know what assets it owns.
2) Take a heavy short position with CDSs.
3) Short the common stock.
4) Watch the credit rating downgrade wipe out liquidity effectively freezing the company.
All loans are liar loans, b/c they are fraudulent, the Banks create fiat out of thin air
ngonea 2 years ago
... welcome to the OTB, uh I mean CDS business...
stankwho 3 years ago
Nice to see that nobody said who make the ratings!!!!
Cause if this is a body of yours - you can demolish everything you like.
Zottl1234 3 years ago
creepy video, outstanding explanation
willsjaime 3 years ago
negative credit events are soo interesting. Thanks for opening my mind to the credit default swap, and the insurance thing. Sounds like the next event crisis. It never ends. shorting is coool
Thunderwavia 3 years ago
@Thunderwavia You don't know the half of it: As bad as the subprime problem is, wait until the collapse of sovereign debt which is why I used the Parthenon in Athens, Greece, the cradle of Western Civilization as the backdrop to my primer video explaining how CDOs are used as speculative tools and will collapse nation states. Now a full year-and-a-half later and the rest of the world is starting to catch on the Greece may also become the cradle of the demise of Western Civilization.
EricTheOracle 1 year ago
Watching Greece falter will be like watching a train wreck that takes two to five years to unfold before they default on their sovereign debt. Yesterday yields were running up to almost 30% on Grecian bonds, reflecting the high risk of default. The take away is that the Grecians dont have in intestinal fortitude to spend less money and pay down their national debt and so they will inevitably default.
EricTheOracle 1 year ago
@EricTheOracle yes i viewd read some on the PRO Leftist riots in Greece angry over loosing their government money, just a small number now, about 25 percent of the entire workforce there is government jobs actually, the economy is based on unproductivity, BUT with the 30 bill euro from Germany, that would keep the Greek government/economy running a few years, though I figure due to the lack of intestinal fortitude needed by Greece to change as you say, that German money will run out and default
Thunderwavia 1 year ago
Credit Default Swap = fire insurance. Over estimate the value of the loss then create a default (arson). You can make a lot of bucks with financial arson.
mujaku 3 years ago
The target deserves to be shorted because they were over-leveraged or unaware of what their leverage exposure was or is. The shorting plan works like this:
1) Find an institution that is in trouble or so convoluted that it doesn't know what assets it owns.
2) Take a heavy short position with CDSs.
3) Short the common stock.
4) Watch the credit rating downgrade wipe out liquidity effectively freezing the company.
EricTheOracle 3 years ago
5) And the treasury to step in and wipeout shareholder value.
6) Reap hordes of money covering cheaply.
7) Reap more money collecting money on the wiped out CDS.
8) Find a new target of opportunity like the idiot who sold you the CDS, like AIG or something.
9) Rinse and repeat all the while knowing that no bulls will stand in your way because they lack the confidence to do so.
10) Welcome to one of the greatest short-side momentum markets ever known.
EricTheOracle 3 years ago