Markets Alert For Credit Crunch 2.0

[Scott Sando]

The real crisis is government debt, always was.

This is the thing there isn't a crisis as the whole system is based on fiat lie, but its going to be very painful as we sort that out in our colective heads, VERY PAINFUL. But the illusory crisis is going to propel gold to the moon. Divergent thinking is needed now.

[VeryMeanReversion]

The whole fiat money system is coming down IMHO. The bankers have gamed the pants of it. The West isn't just broke, it's fooking broke.

That's why I'm buying a small house (~1300sqft) on a big plot (~0.6acre) with a small mortgage from a forced seller (debt/divorce), £53K cheaper than I sold up for in 2003 to ride out the transition period to the new system, whatever that may be, and however long that may take.

I was a deflationist for the first part of the crash but that phase (short as it was) is already over and there can only be printing from now on, whether publicly admitted or not.

It appears that the bankers will keep playing double-or-quits so the chances of an orderly fall in a stable system where HPC'rs can benefit is looking unlikely IMO. There may be a window where prices are falling quickly but before the system breaks where an HPC'r may pick up a good deal for cash but that is a risky game of chicken.

[Bloo Loo]

I noticed.

hmm...Doomberg few moments ago...Barclays profits down 76%....due to a revaulation of debt at Barcap!

[Scott Sando]

hmm...Doomberg few moments ago...Barclays profits down 76%....due to a revaulation of debt at Barcap!

MUUUUUUHHHHAHAHAHAHAHAMUAHAAHAHAHAHHA MUAHAAHAHAHAAAAAAAAAAAAA ...

[LuckyOne]

hmm...Doomberg few moments ago...Barclays profits down 76%....due to a revaulation of debt at Barcap!

That is all part of the scam.

They have a blend of mark to market and accrual accounting.

One of the hits that they took is a mark to market loss on the value of their own debt. When markets were tanking and their own spreads were widening, they took a gain on the fact that their liabilities were worth less. Now that their own spreads have tightened, their liabilities are worth more so they have taken a hit.

As their own spreads are at least somewhat positively correlated to the spreads on their assets, it makes no sense to me that they can use accrual accounting for part of their balance sheet. It makes things look less bad when markets are perfoming badly and worse when markets are performing OK and masks the true position of the bank.

[Alan B'Stard MP]

hmm...Doomberg few moments ago...Barclays profits down 76%....due to a revaulation of debt at Barcap!

You were saying?

[Scott Sando]

A Dollar-Devaluation Adjusted Market Has Barely Moved Above Its 2009 Lows

Tyler Durden

Zero Hedge

Monday, November 8, 2010

While nominal stocks will soon be reaching for new all time highs, very much in the spirit of the Zimbabwe stock market, all of these so-called price levels (and the associated “wealth effect”) are increasingly irrelevant as they continue to come solely at the expense of ongoing global currency devaluation, whose only alternative is the purchasing of hard currencies such as gold and silver. Which is why when expressed in terms of gold, it may be surprising to some that the stock market has barely moved from its generational lows recorded in March 2009. In other words, over the past two years there has been no real growth in asset values, as it has all come at the expense of every central bank’s ongoing, and accelerating, debasement of its currency.

I,m loving that word. IRRELEVENT. dow 20,000

[R K]

Merv will simply launch SLS 2.0

By then Vince will have sold off, or promised to sell off, chunks of Lloyds/HBOS to Mr Potin, Mrs Potin, Master Potin, Ms Potin and all the other little Potins and some bloke from China.

The Telegraph worry far too much.