weekend commentary - from 'Black Swan' events to 'Black SWAMP' events
(snip)"To put things in perspective: the annual cost of occupying Iraq and Afghanistan including the bombing of Pakistan and Syria as well as border feints against Iran, cost us an extra $150 billion a year. So the rescue of an insurance fund is the equal to international war. The war expenses are inexcusable. But this is far, far worse.
We have to pause and ask, 'What is insurance?' It is the collective sale of risk which, by being spread as much as possible, can overcome periods of losses. These losses have to be calculated very carefully so that the insuring agents aren't swamped by some event.
Online, there is much talk about 'black swan events'. Well, we are seeing a massive flock of black swans migrating south. The fiscal skies are black with these birds of doom. For swans were the emblem of death as well as longevity. The ancient Romans ate swan tongues so they could gain youth. A black swan was supposed to be impossible. But then, when the Europeans sailed to places like Australia, they found that the only swans were black swans!
This is a good frame for the concept of 'the black swan' being a 'rare event.' Actually, there is always a yin to every yang. And the insurance risk swap game was predicated on an overall collapse being a 'black swan event' that would probably never happen.
Anyone reading the history of finance, debt and banking is struck by one major thing: they ALWAYS collapse into chaos! They always over slop the banks of the river of liquidity. They always over-expand. They always form bubbles. Ergo: the human tendency to go bankrupt is very strong! The impulse to overrun all barriers, to make too much credit available compared to savings, this is a constant, total temptation. This is why governments must have very powerful rules to prevent this.
AIG is eating up all our national fiscal resources just as certainly as major wars eat up resources. To have a country go deep into debt to keep a bunch of idiot insurance agents alive: this is the definition of a black SWAMP event. We are sinking into the muck and there is no bottom."(snip)
(snip)"Lehman, Bear Stearns and AIG all did the same thing: they stuck the peanut butter side of their lunches onto the reports and then handed the mess over to the SEC. Cox is a political appointee who paid no attention to this and when his staff complained, he told them to shut up. Now, he is in the news, pretending to care about the book reports from these gooey fingered gnomes. 'Bad, bad, naughty gnomes,' he cries.
Bears who trade on real information are very steamed now. The market has collapsed but is being artificially propped up. How's that?
Ah! By pouring trillions of dollars of US taxpayer's futures into the markets! They are using every crummy trick in the book used by African or South American nations seeking to fix economic messes caused by cronyism and criminal manipulation of the bottom line.
The longs getting out is fancy talk for the rats who run these joints jumping ship. The gnomes are palming off their dying industries into the laps of someone, anyone. Since bears are barred from buying, this leaves exactly who?
HAHAHA. If you said, 'Uncle Sam!' you win a Derivatives Beast magic decoder ring. This ring is wonderful. You put it on your finger and say, 'Make me rich!' and all your money vanishes! Every child should have one. "(snip)
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Re: weekend commentary - from 'Black Swan' events to 'Black SWAMP' events
after reading my 'friend' Elaine's commentary, you may need some cheering up ...