How Cross Selling Of CDOs Between Banks "Created A Big Ponzi Scheme"

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Tue, 06/08/2010 - 12:59 | 401848 Cursive
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July will be the month for FAZ fireworks.  Should be pretty explosive.

Tue, 06/08/2010 - 13:11 | 401870 firstdivision
firstdivision's picture

FAZ explodes, then TZA will be even more explosive.  Get the benifit of financials tanking along with the Russell 2000. 

Tue, 06/08/2010 - 13:14 | 401878 Duuude
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Twould be nice to have an Apalachin Conference Event.

Tue, 06/08/2010 - 13:50 | 401952 Commander Cody
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Jekyl 2 for the reset.

Tue, 06/08/2010 - 13:08 | 401863 101 years and c...
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“We’re still working to try to minimize the damage the amendment would do to bank-holding company capital,” said Mark Tenhundfeld, executive vice president of the American Bankers Association, which predicts the rule could force banks to raise as much as $130 billion of new capital or curtail lending.

In other words, this probability this amendment gets removed is 100%.

Tue, 06/08/2010 - 13:17 | 401886 TooBearish
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TruPS= True Pieces of Shit   - I slay me

Tue, 06/08/2010 - 13:23 | 401899 Cognitive Dissonance
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Damn. You beat me to it.

Tue, 06/08/2010 - 13:18 | 401889 truont
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How Cross Selling Of CDOs Between Banks "Created A Big Ponzi Scheme"

So, what does cross selling of US equities between megabanks create?

"Oh, it's not a ponzi scheme!  We're just creating liquidity in the market...yeah, that's it!"

Tue, 06/08/2010 - 13:36 | 401922 Duuude
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Skynet Pong ?

 

That's it, it's actually a Pongischeme.

Tue, 06/08/2010 - 13:45 | 401939 mephisto
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Record the high powered workstations of HFT shops playing 500 games of Pong in parallel, average the position of the ball, rotate 90degrees, and you get the SPX500 chart. 

Try it, it works. Denninger can kiss my ass, that's technical analysis baby

 

Tue, 06/08/2010 - 13:43 | 401934 Dr. Richard Head
Dr. Richard Head's picture

Oh, say can you see Wall Street’s theft in plain sight
With the debt that we sow while cash register’s beeping
Whose broad lies and false flags thru the congressman’s lies,
O’er the market we watched was so rigged just for stealing
And the derivatives there, the bombs burst everywhere,
Gave proof through the night that our poverty is here.
Oh, say is the false left-right paradigm still there
O’er the land of the thief and the home of the slave

Tue, 06/08/2010 - 16:00 | 402246 hbjork1
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Dr. RH,

Magnificat!

Tue, 06/08/2010 - 13:31 | 401890 truont
truont's picture

.

Tue, 06/08/2010 - 14:24 | 402035 WestAfricanChief
WestAfricanChief's picture

I do wonder about the banks and the XLF

Banks like wells. . .seem to be undercapitalized,but still insist they will earn their way out

what if shit hits the fan b4 they are able to earn their way out in time?

Hope buffet has enough capital then to bail out GS plus Wells

or perhaps they will both merge. . .

The WEST AFRICAN CHIEF

Tue, 06/08/2010 - 14:33 | 402053 Let them all fail
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And CNBC wonders why Bloomberg kicks its ass, maybe because they do actual journalism?  On second thought, they are probably aware of their irrelevance...

Tue, 06/08/2010 - 16:32 | 402336 pak
pak's picture

"Quantitative finance" is not "complex". It's simpler than, say, high school physics.

The better word is "confusing". And isn't it exactly what it was designed to be? Undertake as much risk as you can while pretending you don't.

Wed, 06/09/2010 - 12:12 | 403421 ZeroPower
ZeroPower's picture

Good article.

The amount of shit that JPM pulled with CDO subprimes is a lot more than they've been on the hook for recently. 

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