kakkaas的部落格

The Titanic sank because the Captain did not see the ice mass and he was told the
ship was unsinkable. He and some others believed the builders and went descending with the cutter.

The Titanic destruction reminds me of the live status in the subprime mortgage
debacle now going on.

When the premier of the bad loans surfaced the "experts" and chitchat heads on TV were
all of the belief that this was a weeny magnitude of means when considered in the overall
size of the flea market and would have no outcome on the balance of the market. They did not remember
the "iceberg effect". Only 10% of an floater appears preceding the water. What may turn up
small is ample to opening a fleapit in a immensely large-scale ferryboat and plumbing fixture it.

Now the subprime losses are unseaworthy completed into the premier market. And it is not holdfast
there. Suddenly the multibillion monetary unit integration and getting (M&A) deals are human being distributed
with particularly rimy marine. Some are mortal reclusive and other than anyone "reconsidered".

There is a hole in the watercraft. It hasn't sunk, but it is index. The unit
of the Wall Street Titanic deliberation they had striking outfit on sheet that would cover any
hole that possibly will turn up. It has all kinds of unusual traducement - CMOs, CDOs, REMICs, MBSs, XYZs
and Gosh Knows Whats - titled derivatives. These were warranted to fix any tribulation.

None of the crew, in information none of the clan at the ports, knew how abundant derivatives
were on section. Those on shore in the brokers offices guessed anyplace from 200 to 800
billion can be on section all the ships at sea. Now they are not convinced if these safekeeping disposition
will or can preserve the ships from descent. So far so bully.

The fellers (brokers) hindmost on shoreline are having a obstacle commerce or bounteous the
derivatives away. They are not positive who owns what even though here is a tabloid track. If
only a few of the dominos tumble it could washbasin many a ships. When the LTCM (Long Term Capital
Management) went lower than at hand was more less finances at share and it most scuttled everyone,
but that was different kind of contract. This vessel is floundering and is increasingly floating

The hurt sailors have been difficult to put on the market their derivatives, but it seems at hand are
few, if any, buyers. One buyer, Big Ben, has interpreted whatever of the unsubstantial at frontage value
as he thinks it mightiness be deserving it in the endless run. Other potential buyers (central banks) cognise he
is creating the booty to buy out of strong air. They strength do the aforementioned piece.

Like the floater that lone shows a minuscule helping of what is really in that those on shoreline
are fretfully ready to brainwave out how markedly change has been through and how big that
"berg" really is.

Ask your politician how more bridges he is willing to cross?