[Roccland]

Prudent Bear

$this->bbcode_second_pass_quote('', 'T')hose who purchased equity tranches lost more than an opportunity to increase returns. In many cases, they will lose their investments as well. Adjustable rate mortgage resets, the trigger event for subprime foreclosures, will continue through 2011; and in the interim as more subprime CDOs fail, financial losses will rise.

The real losers, however, are not the pension funds, banks, insurance companies or mutual funds that invested in CDOs; the real losers are you, the investors, producers, and savers that use banks, pension funds, insurance companies, and mutual funds to protect your savings against the erosion in the value of money that occurs in debt-based economies.

Your losses are now paper losses but this will soon change. Should those now owning CDOs (banks, pension funds, insurance companies, mutual funds, etc) be forced to mark to market their CDOs (value their CDOs at market value, not seller ascribed value), your losses would become readily apparent. But, it will not be so. The smoke and mirrors that intentionally creates opacity in place of transparency is designed to aid investment banks, not those who buy their investments.

But as your losses from CDOs become more significant and America’s banks, pension funds and insurance companies begin to falter, investors and savers will look to the government for help. Look no further. Save your breath. You’re too late.

The fox is already in the henhouse. The current head of the US Treasury is none other than investment banker Henry Paulson, the former head of Goldman Sachs, the large US investment bank and major player in today’s debt markets.

And although in the 1990s, US taxpayers gave Goldman Sachs $4 billion gratis to cover their losses on Mexican bonds, do not expect the favor to be returned. Investment banks live off of producers and savers, not the other way around.

If the forces of anti-globalization were to take aim at today’s global economic edifice, they could not have aimed as well, or have created a more effective time bomb than Drexel Burnham Lambert’s CDOs.


One of the world’s top financial strategists predicted that today’s largely unregulated financial markets are going to come to an abrupt end. That self-regulation is no more possible with bankers seeking billions in bonuses than with teenagers seeking sex in the back seat of cars.

He predicted that America would react with swift vengeance and draconian regulations when they woke up and realized their past savings and future dreams have been bet and lost by the boys on Wall Street.

Here in 2007, the bets have been made and the losses are coming. America has yet to wake up.

It will. Be prepared. It’s going to get ugly.

[OilIsMastery]

An investment of $9 in Prudent Bear in 1996 would be worth $6 dollars today.

I'm pretty sure shareholders of the Prudent Bear Fund (BEARX) are the real losers...LMAO.

David Tice is a doomer with an inferior track record to those who are net long the market.

[Roccland]

$this->bbcode_second_pass_quote('OilIsMastery', 'A')n investment of $9 in Prudent Bear in 1996 would be worth $6 dollars today.

I'm pretty sure shareholders of the Prudent Bear Fund (BEARX) are the real losers...LMAO.

David Tice is a doomer with an inferior track record to those who are net long the market.

[OilIsMastery]

I agree we are headed lower and we have been for a week. We will probably head lower still. Don't jump out the window. Eventually there will be an obvious buying opportunity.

[Roccland]

[BigTex]

Just because a doomer has a good act doesn't mean he/she is right.

Doomer talk is kind of like the news--some of it is based on fact and good analysis and some of it is just pure entertainment.

[evilgenius]

So, where does the drying up of capital really matter? Doesn't it matter when it effects our ability to deal successfully with the future? Has that ability been eroded or have the boys been able to hand the damage off to others?

Who is left holding the bag?

A lot of what is lost in these situations is under the table money. Money skimmed from IMF and World Bank projects around the world as well as clandestine oil and other resource profits has been lost. The off-shore world is not exempt from this - and it is a whole lot less protected.

Which part of the world goes down, Zimbabwe style, next?

[jboogy]

The losers are everybody.The terminally bullish are on talking about how strong the economic fundamentals are;low unemployment,good productivity,etc.Bullshit,they're doing what they're told,put a happy face on everything 'cause the market is 80% confidence game. Crappy mortgage paper has infected ALL sections of the economy that deals with debt,and affects the other parts peripherally.These hedge-funds are a bomb ,and they're going off.This bad debt has been bundled with anything and everything,and it's all gonna get bit.