Log in

No account? Create an account
19 March 2009 @ 03:11 am
Equity lines can be created from near illusions  
the federal government is not bailing out local banks, mortgage houses , or car dealerships... They will continue to fail and be bought for pennies on the dollar with bailout money by the Big Banks, Auto Companies, and Mortgage Houses

I have found Falcon's report

Armando Falcon's February 2003 loan derivatives assessment indicates that we exceeded our capacity to repay loans...The differential of excess loans whose payment requirements could not be met by available cash are subprime loans. In real terms, all economic classes borrowing money after 2003 were, in part, doing so on a subprime basis (there was not enough cash for repayment because of current equity caps)

I linked a NYT article which detailed how China plans to privatize land holdings to provide an equity solution to the subprime crisis (the money the government is throwing around for infrastructure investment and the interest being paid by Icelandic Banks are the first customers utilizing the new equity lines for credit China's land policy changes will create). http://www.nytimes.com/2008/10/11/world/asia/11china.html?_r=1&hp

1. Loan securitization and derivatives markets have been and will continue to be responsible for global economic growth
2. Chinese currency exchange markets produce its U.S.dollar savings glut,
___a.The dollars obtained from consumption markets are exchanged for Renminbi (whose value is mostly dollar pegged - a gold standard)
___b. China uses its Dollar savings to provides loans to the U.S. that are repeatedly leveraged to purchase multifold values of ___Chinese goods and developments (usually 10%/annum).
3. The privatization of Chinese land holdings will rapidly increase opportunities for leveraging the values of its currency gluts thus allowing international markets to access larger amounts of capital.
__a. An increasing expansion of Chinese domestic loan markets will continue to undermine its dollar peg currency system and will likely better integrate Chinese banking activities into the Forex floating currency system's architecture.
__b. This aspect will relieve current U.S. anxieties about its note accumulations because improved market integration will further empower China to divest itself of the value risks attached to note accumulations by allowing it to further spread (increase)their value by spending on South China Seas, Central Asia, African, and Near East market investments.
: Equity lines can be created from illusions (Antartica is a huge continent)_