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HuMONGouS SHaDoW BaNKiNG CHaRT: DeSiGNed By NY FeD
The following chart was prepared by PhD scientists at the New York Federal Reserve Bank for a research paper concerning the "Shadow Banking" system. This is an abstract from their report:
Shadow banks are financial
intermediaries that conduct maturity, credit, and liquidity transformation without access to
central bank liquidity or public sector credit guarantees. Examples of shadow banks include
finance companies, asset-backed commercial paper (ABCP) conduits, limited-purpose finance
companies, structured investment vehicles, credit hedge funds, money market mutual funds,
securities lenders, and government-sponsored enterprises.
Shadow banks are interconnected along a vertically integrated, long intermediation chain,
which intermediates credit through a wide range of securitization and secured funding
techniques such as ABCP, asset-backed securities, collateralized debt obligations, and repo.
This intermediation chain binds shadow banks into a network, which is the shadow banking
system. The shadow banking system rivals the traditional banking system in the intermediation
of credit to households and businesses. Over the past decade, the shadow banking system
provided sources of inexpensive funding for credit by converting opaque, risky, long-term
assets into money-like and seemingly riskless short-term liabilities. Maturity and credit
transformation in the shadow banking system thus contributed significantly to asset bubbles in
residential and commercial real estate markets prior to the financial crisis.
HUMONGOUS SHADOW BANKING CHART
[You may have to download the chart to get the necessary viewing resolution.]
Last week Gillian Tett, wrote a short piece about this chart in the Financial Times. Gillian is one smart woman and she has written an authoritative book on derivatives and securitizations called: "Fools Gold".
Here is what she had to say about this chart: "These flows are so extraordinarily complex that hundreds of boxes create a diagram comparable to the circuit board of a high-tech gadget. Even as poster size, it is difficult to decode." [Source: Road Map That Opens Up Shadow Banking]
If Gillian Tett is saying this is "difficult to decode" who am I to argue.
Here is what I have to say about it. Once upon a time, taking out a mortgage to buy a home was simple, you took out a loan and paid origination points to your bank. But then it became very complicated...
Somehow we wound up with an "Intermediation Chain" that looks like this...
Why did this happen. Wall Street says that previously inaccessible capital was unlocked for the noble purpose of providing homes for millions of Americans.
Capital constipation?
Bullshit! What really happened is the distance between the source of capital and the end user was stretched to the Squid Event Horizon. Remember how many times we heard that term "Intermediary" used by Blankfein during the Abacus hearings? The game is to stretch and complicate and derivate the capital pipeline beyond comprehensibility and charge an endless series of toll fees and commissions at every step of the way. The key is stretch, complicate and derivate!
The end result, a humongous misallocation of capital and physical resources, humongous fees and bonuses and a humongous shadow banking chart.
I will attempt to simplify it all thus...
One chart for Gillian:
And one chart for the rest of us...that's Ummmmmmmm not Om!
WB7
»
That giant sucking sound Ross Perot talked about works both ways. And I'll wager there is far more heading North than South (as I recall the view from space shot). Regardless, it looks like some folks believe it's time to start some sacrificing only this time the food chain is gonna stop before it reaches the actual core of corruption.
Looks more like the flesh dropping off a zombie that has been partying too hard.
http://maxkeiser.com/2010/11/23/the-crew-from-zeitgeist-moving-forward-came-by-today-to-shoot-my-part/
The crew from “Zeitgeist: Moving Forward” came by today to shoot my part for the film.
"...was nature, today it is culture."
Willie....you are wasting yourself here....you need to be doing Anime porn for the SEC.
And, replying to myself for context....since we are talking banster squid here, we must start with tentacle rape. Say a group of evil cephalopods with dollar signs in their eyes wrapped around various places on the globe....their slimy, RICO smelling tentacles raping the beJesus out of home owners, credit card users, automobile purchasers, long-term retirement investors and just...well, taxpayers in general. Of course, these evil beasts have beaks...hard, calcine snappers that are digging the wealth out of the ground and shitting it out into the oceans and rivers.....maybe top it off with Durden smashing the brain-cap off two giant squid with a double reverse spinning back kick....and a rebel, Zerohedge starship launching photon torpedos into the soft tissues of one mega-squid who is mounted over middle America. You of course, will be seen driving a razor-sharp damascene sword down through the head of another....pushing it in deep with both hands like a mythological Samurai disposing of a vile sea monster that just crawled onto the shores of Hokkaido....out of the wound flows fiat currencies, lost mortgage notes and government bonds....I can see it now, like some kind of really fucked-up scene of total armaggedon by Caravaggio.
Ok, got everything so far ;-)
Well, Willie...we all know what happens once you cross that event horizon...HO HO HO! matter turns to energy, time stands still, and all physical matter is ripped apart into Cosmological tendrils of little dog-shit photons. Yes indeed...squid in black hole. Or, hopefully in this case, the usual squid suspects end up in cells with 300 lb. queers who fart all night.
Hey Blankfein....! Know how you keep your fingernails trimmed in prison? Clawing the walls you little pudgy fuck.
Barney Blank
re: shadow banking mandala.
excellent design for a watermark on a treasury note. imo.
.
Gary Null All Tuesday November 23 12:00pm Gary Null All Tuesday November 23 12:00pmhttp://archive.wbai.org/
.
George Carlin - Airplane Safety
http://www.youtube.com/watch?v=GFW6NHbWX0E
yeah, william mandala's rock. or silica sand/rock, whatever. i wanted to make a glass mandala. will if ever given the chance.
In various spiritual traditions, mandalas may be employed for focusing attention of aspirants and adepts, as a spiritual teaching tool, for establishing a sacred space, and as an aid to meditation and trance induction.
dust to the wind†
i can now remove my sword.
plus, at least it isn't that silly pyramid symbol propping up everywhere we look nowadays.
http://www.youtube.com/watch?v=PS5ioVeYzbo
i saw that movie a couple of times. kiinda hard for me to watch back then, cause of all the blood. now i can see it for what it is, just fake blood and actors.
cool H O T chicks with
SWORD, bitches.
im decorating my sword for william, to take down the squid†
That is a computer font that I found that is pretty close to mine. Mine more oblique ;-)
T loves the mandala.
banzai is the maha guru!!
ummmmmmmmmm? ;-)
1) you are in fact correct about downloading for resolution. It's so big you had to squash it down so much that when I tried to blow it up again, it was fuzzy to the point of being unreadable. Like some old 18th century document.
2) awesome "subprime pipeline". Concise, funny . . . and accurate.
Best is to download the full PDF from the link Tyler provided. But don't try to print it because it is a poster the size of half your wall.
So...then I would have to take down my world domination map?
overlay it and you might find the secret code ;)
So now we have a $20 Trillion parallel banking system operating in a parallel universe. Welcome to the twilight zone of banking.
The Geithner Zone...
an ant farm within an ant farm within an....
http://www.ehow.com/how_2088812_make-ant-farm.html
Some of your best work, Banzai! Most brilliant.
Some of your best work, Banzai! Most brilliant.
Tnx Bob, as always ;-)
is that your script handwriting: Congratulations Frank?
it's like, calligraphy. difficult stuff for me to embrace.
off to sword fighting though.
Beatrix Kiddo ;-)
Oops, for some reason I answered below ;-)
Great wonderful, life-enabling, humor....momentarily clearing the 'fog of war' thank you, thank you
'in the long' run we are all dead'...Keynes... escape clause....what DID he mean, really? he fooled us all, knowing the one 'Keynesian fallacy' THEN, that we NOW all know....so make merry, THEY cannot/will not be 'saints', indeed know not what they do unto others....
concept of 'objective law' will work ONLY if the law administrators, themselves are subjects, and at a higher standard of punishment, by multiples...
http://www.wsu.edu/~dee/MESO/CODE.HTM
http://eawc.evansville.edu/anthology/hammurabi.htm
http://en.wikipedia.org/wiki/Hammurabi
And, of course, Actual-Historic rulers/oligarcy, corrupted by power, rarely FULLY apply'objective law to themselves, as 'subject'....the well social-engineered check/balance built-in rarely applied....Hammurabi tried; USA tried, the 200+year great experiment seems to have conclusively failed, just another unworkable scheme...all a great Cosmic Joke...Keynes message?
interesting perspective mate...nice of you to bring Hammurabi into it.
here's a wiki fun fact : An image of Hammurabi receiving the Code of Hammurabi from the Babylonian sun god (probably Shamash) is depicted on the frieze on the south wall of the U.S. Supreme Court building.
and there you go.
and that keynes quote reminds me of this franklin one : "A republic, if you can keep it."
Some where I saw someone did a whole piece on the symbolism and mythology plastered all over Mumbo Jumbo DC
Beautiful and informative as always. Thank you.
One problem, to make Subprme Pipeline more representative of reality you need to add about 20 more fee skimmers.
You are right. there should be one on every leg.
Most excellent! Having worked in the mortgage industry for years through 2005, I loved the sub-prime pipeline. In the 'old days' the only thing need to irrationally misallocate capital was to have a central bank manipulate interest rates. The Shadow Banking Board might use a Greenspam alternating disinformation obfusification port.
That is almost as bad as confessing you worked for the TSA ;-)
Which one gets to fondle more people? I know damn well which one gets to FUCK more people!
My latest video: OMG Bank - Just Give Us Your Money
If only people read Zero Hedge. All this and more was broken out in late July on this blog.
Will The Record Plunge In Shadow Liabilities Impair Current Account "Shadow" Deficit Funding And Guarantee A Double Dip?
And since it takes cartoons to get people's attention, here is the pozsar paper.
then they would've missed making huge money before losing it all in the next crash.
Hell TD, I need to co-locate my brain next to your server to retain a quarter of all the fantastic info you all put out. I read the spots off your site and have since the early blogger days and still have a tough time retaining a majority of the info. You folks are amazing. Thanks for all you do.
"Hell TD, I need to co-locate my brain next to your server to retain a quarter of all the fantastic info you all put out."
I was thinking the same thing...for myself...there has to be some time for contemplation for it all to soak in.
But for TD & crew...don't change a thing...it's my problem not your's...LOL.
I knew I had seen that sucker before. That was the day I threw my iPhone at a wall.
I'm not a cartoonist. I am an attention deficit manager...
WB7 = ADM
My wife found my copy on the printer and accused me of being addicted to financial porn. Alas...I had no defense.
"Squid Event Horizon"
Magnifique !!!!!!
I bow to your Magnifiqueness !!!!
That was truly great! (Guess I can dump it off my clipboard now.)
Actually it looks like a cross section of a termite nest or ant farm. :>)
Now we know where the queen is.
I once had a termite farm in a house I rented back in the '70's in Borneo. One day I had a reasonable British Colonial Bungalow...maybe #3...can't remember, and the next day I had a pile of sawdust. These banksters having nothing on tropical termites. Since I never found my cast iron skillet, I assumed the little buggers ate it along with everything else....kinda like a bank transfer fee of sorts.
And that add reminds me of the comic book adds for 'sea-monkeys'. Not totally off topic as I believe the word sea-monkeys could be used any number of ways when discussing shadow banking, or cental bankers.