The $30 Trillion "Problem" At The Heart Of Shadow Banking - A Teaser

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Mon, 12/12/2011 - 19:20 | 1971950 maxmad
maxmad's picture

$30 Trillion, Bitchez!

Mon, 12/12/2011 - 19:26 | 1971973 greased up deaf guy
greased up deaf guy's picture

i wish the phucknuts that be would just let the system reset already. my popcorn is getting stale.

Mon, 12/12/2011 - 19:28 | 1971982 Ahmeexnal
Ahmeexnal's picture

Get melamine popcorn.  No best-by date.

Mon, 12/12/2011 - 19:38 | 1972011 Eally Ucked
Eally Ucked's picture

I highly recomend Harveys turnover, it's always crispy, rain, fog whatever it is. Probably is good after 1 year and delivers fruity vitamins to your system, as good as popcorn + vitamins.

Mon, 12/12/2011 - 19:42 | 1972026 trav7777
trav7777's picture

all that debt, needing to grow, needing to be serviced and nobody can do it.

Mon, 12/12/2011 - 20:01 | 1972092 MsCreant
MsCreant's picture

It is stunning anyone is still trying.


Service=Pay the monthly.

Service=Politicains in kneepads trying to keep bankers in the money so that the gravy train does not stop.

Service=Serve us, debt slaves. Work your job, take home your check, give it to us, all for shit we have convinced you that you need which you really don't.

Service=Serve vices. All your habits are belong to us. American Idol, NASCAR, football, booze, drugs, video games, whores, serve all your vices because it's all you got to live for.

Service=Serve US.

Mon, 12/12/2011 - 20:56 | 1972207 Cheesy Bastard
Cheesy Bastard's picture

I wasn't cheating, honey.  I was merely rehypothecating your dowry.

Mon, 12/12/2011 - 21:27 | 1972293 economics1996
economics1996's picture

Can anyone pronounce that fucking word?

Mon, 12/12/2011 - 22:12 | 1972448 Taint Boil
Taint Boil's picture

I have hippopotomonstrosesquippedaliophobia so no I can't .....

Tue, 12/13/2011 - 00:46 | 1972781 Oh regional Indian
Oh regional Indian's picture

Ahhhhh.....classic. Can't decide if that is s joke or for realz!

Shadow banking is merely a euphamism for Black Money. Seriously, just replace "Shadow Banking" with "Black Money".

Suddenly all this reads better, puts all the suited criminals in their true light and since we all know that the Black Money game is far huger than the white one, gives us a sense of scope and danger of the Black Money System.

Seriously folks, labels are important.

The 30 Trillion problem at the heart of the Black Money System.



Tue, 12/13/2011 - 06:06 | 1973085 bentaxle
bentaxle's picture

Yep, you need Mary Poppins.

Mon, 12/12/2011 - 21:22 | 1972277 centerline
centerline's picture

Ahh, a serial junker who doesn't understand debt dynamics.  Funny.

Tue, 12/13/2011 - 19:37 | 1976490 Bring the Gold
Bring the Gold's picture

Great stuff MsCreant I especially liked "All your habits are belong to us". Very apropos in a list that includes video games.

Mon, 12/12/2011 - 20:03 | 1972094 Pegasus Muse
Pegasus Muse's picture

OT.  Fast Money Interview:  James West of the Midas Letter

He gets some serious licks in.  US interests manipulating the paper gold market.  4000 contracts sold in the wee hours last night.  Fiat money going to zero value.  There will always be a buyer of physical gold.   Melissa Lee cut him off abruptly because he KO’ed the entire Fast Money BS-er crew.


Mon, 12/12/2011 - 21:00 | 1972215 dick cheneys ghost
dick cheneys ghost's picture

lots of US Banks in "the City".............more than i would have thought.....


"There are 110 banks in the City owned by France and Germany which could be caught up by the tax. Most of the 1,117 foreign banks and financial services firms in the capital are US-owned."

Tue, 12/13/2011 - 07:45 | 1973162 kylebassfan
kylebassfan's picture

@ Pegasus: If you look at the transcript of the clip, any references to "fiat" currencies have been removed. Ditto the entire section where James talks about vested interests who shorted 4000 gold futures contracts during HK trading hours.  Amazing!

Tue, 12/13/2011 - 19:45 | 1976505 Bring the Gold
Bring the Gold's picture

That is wild. Where are our resident anti-gold shills and or apologists for fiat manipulation? Hmm, please justify this NON-conspiracy. *chortle*

Mon, 12/12/2011 - 20:48 | 1972193 disabledvet
disabledvet's picture

actually you have (accidentally) just stumbled on to a far greater problem than "the shadow banking system." Where the system breaks down is when lending growth seizes up. In the US it's growing about 2 percent a year which is at best...ahem...ANEMIC. In Europe i guarantee it's negative. If loan growth turns sharply negative...and so far we have the perfect storm of policies to create just such a perfectly disastrous outcome in Europe...then that would be the precursor to a start of a massive bank run as "i don't trust your country with my money" is writ real.

Tue, 12/13/2011 - 07:59 | 1973182 Ghordius
Ghordius's picture

already happened - some 50% of lending from US banks & funds to EU banks & funds was retracted in the last months

collateral damage: the FED "realized" the Europeans could sell off the US assets in the same measure (they were partly funded by the USD loans)

hence the direct lending in USD through the CBs

Mon, 12/12/2011 - 19:57 | 1972079 TimmyM
TimmyM's picture

Dehypothecation Bitchez

Mon, 12/12/2011 - 22:39 | 1972524 Mauibrad
Mauibrad's picture

@TimmyM Have you not coined a new word?  I believe you have.  You might go enter it into the Urban Dictionary.  De-hypothecation.  Indeed, that's what it will be.  BTW, for those wanting to know how to pronounce it, I figure the syllables break down like this:  De-hypo-the-ca-tion.

Mon, 12/12/2011 - 23:31 | 1972634 LowProfile
LowProfile's picture

Dehypothecation:  (Verb)  To cash out of one's financial assets and exchange them for real assets.  See also (BEANS, BULLETZ N' BULLION, BITCHEZ).

Tue, 12/13/2011 - 01:03 | 1972826 Pythaes
Pythaes's picture

Dehypothecation?swab mouth offshore swapfx short covering bund hedge ABACUS Bitchez aka jello banking___ tagline once 

Mon, 12/12/2011 - 22:09 | 1972438 Taint Boil
Taint Boil's picture



“That men do not learn very much from the lessons of history is the most important of all the lessons that history has to teach.”

Aldous Huxley

Mon, 12/12/2011 - 19:58 | 1972084 Shizzmoney
Shizzmoney's picture

Srsly.  Fucked if it happens around Dec 2012 too.  People will lose their shit.

Tue, 12/13/2011 - 01:06 | 1972831 Pythaes
Pythaes's picture

no... the ones that will freak out have no wealth... those that freak out will say ...well HOW could the canadian dollar be an impact to me.

Tue, 12/13/2011 - 01:16 | 1972844 Pythaes
Pythaes's picture

completely ANONYMOUS... my house was hoarded with y2k in 1997 supplies form my uncle... bubbles move."brilliant guy that got crazy yet worked for GS...moved mbs...cdo2...for years since inception...the house of cards will fall.. but a new house will be built".....on quicksand...but whatever...crouds think strange things... he knew meriwether and kinsella and a ...your...fn...eyes

Tue, 12/13/2011 - 01:38 | 1972891 Teamtc321
Teamtc321's picture

Eyes wide open now. It's time to call the ball.

Pretty simple really I think, shitty yes but an old saying I like is this, if it smells like shit, taste like shit, then just shove it out into the sunlight.

Pretty soon the shit that is in the sunlight, if it looks, taste and smells like shit, let the sunlight burn on it for a bit.   

Mon, 12/12/2011 - 20:30 | 1972149 chump666
chump666's picture

Soon. 2012  = the end

Mon, 12/12/2011 - 20:46 | 1972188 ParaZite
ParaZite's picture

As long as Bernanke has a printing press, does it really matter how fucking high the number is, if the world goes along with the game?

To a Skewes' number and beyond!

Mon, 12/12/2011 - 22:04 | 1972420 Calmyourself
Calmyourself's picture

If the world goes along...  It will and it wants too, like a beaten wife willing and able to jump o n the cop's back handcuffing her abuser.  Most people will take the blue pill without a doubt and that is why this will take much longer.  Forget finance concentrate on psychology if your interest is timing.

Mon, 12/12/2011 - 21:43 | 1972344 DarkestPhoenix
DarkestPhoenix's picture

I haven't seen the Tylers post this link, but in the most recent AC 2011 Session, Kyle Bass kind of touched upon this rehypothaeklajklation stuff starting at 42:00. 

Mon, 12/12/2011 - 22:08 | 1972435 JW n FL
JW n FL's picture



what do you mean?

Kyle LOVES the Comex.. and he Loves how his Gold was spread out all over the place.. and he really does trust in Price controling the deliverable amounts of Gold!

$80 Billion Trading in Paper Gold.

$2.7 Billion in physical, before Kyle took his $1 Billion which ='s $1.7 Billion v $80 Billion!

Dont worry the price of Gold will drop as Credit Markets Freeze.. as Martial Law is enacted.. but the real question people skip when yapping about the price (of Paper) Gold going down forth coming because of the European Crash.. is where or who is selling real physical at that lower price?

Dont get me wrong! I will be looking for those people dumping Physical Gold or Silver! and buying..

But I dont think that there will be a retail or reasonable amount of physical metal trading at low prices during Martial Law Time Periods.

Jus sayin!

Travis you wanna try and take a wack?

Tue, 12/13/2011 - 04:09 | 1973027 DarkestPhoenix
DarkestPhoenix's picture

Who will be selling?  Sovereigns...for many reasons, not the least of which will be to keep prices down AND get cash they need for liquidity in the fiat system they absolutely believe in.  Worse comes to worse, they'll just try to steal it back from those stupid enough not to dump it over the side of their boat.  Government-sponsored brokers (and run of the mill idiots) will still be offloading, IMHO.  But, if not....that's why I have 40% of my desired position already.

Mon, 12/12/2011 - 22:45 | 1972537 Thomas
Thomas's picture

Tyler posted it. I was #302. It's now over 60,000. Zero Hedge's public service announcements work.

Mon, 12/12/2011 - 23:33 | 1972639 LowProfile
LowProfile's picture

Holy fucking shit.

Mon, 12/12/2011 - 19:20 | 1971952 prains
prains's picture

The giant vag

Mon, 12/12/2011 - 19:38 | 1972010 DormRoom
DormRoom's picture

the diagram looks like a squid. It's Goldman Sachs.

Mon, 12/12/2011 - 19:44 | 1972035 prains
prains's picture

It's not what the diagram looks like but what the motivation is to blow a $30 trillion dollar line of smoke

Mon, 12/12/2011 - 21:13 | 1972240 pavman
pavman's picture

It looks like a whale to me.  What you need to do is shed the bottom 20%, that will make things better.  Then, shed the next 20% ad naseum until there's no customers, and thus no profit, left.  Oh wait, wrong decade...its a squid.

Mon, 12/12/2011 - 20:52 | 1972196 johny2
johny2's picture

The biggest Pyramid in all human and alien civilisation history....Keyneses Pyramid.

Mon, 12/12/2011 - 20:53 | 1972201 Tunga
Tunga's picture

This is not the virgin you're looking for.

Mon, 12/12/2011 - 19:21 | 1971953 maxw3st
maxw3st's picture

Great Chart. I want the T-Shirt!

Mon, 12/12/2011 - 19:29 | 1971985 Rainman
Rainman's picture

Drink up.....Aint' no party like a counterparty !!

Mon, 12/12/2011 - 19:50 | 1972055 Manthong
Manthong's picture

I need a break from all this heartless and self-serving financial conniving.

I think I’ll go do some good and donate a toy for some poor impoverished child.

Happy Holidays.

Mon, 12/12/2011 - 20:05 | 1972098 Rainman
Rainman's picture

Charming idea. It's all about the little kiddies at Xmas.

Mon, 12/12/2011 - 20:45 | 1972187 Potemkin Villag...
Potemkin Village Idiot's picture

You'll shoot your eye out kid...


Mon, 12/12/2011 - 20:11 | 1972111 yabyum
yabyum's picture

Time to give a slug to the local foodbank and health clinic. Time to give a kid a toy. They may take our money, skull fuck our future, but they can not take our humanity, were fucking better than that.

Mon, 12/12/2011 - 21:33 | 1972314 crghill
crghill's picture

Like a East coast counterparty cuz a East coast counterparty don't stop! All the banksters in the house say YEAH....YEAH.

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