【 95 】 Kinghood Explore the multinational financ

【95】 Kinghood Explore the international financial war (Part IX)
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3, asset securitization to see the illegal nature of financial derivatives

asset securitization refers to the lack of fluid assets , is converted to in the financial markets can be freely sold securities deeds. At 1st glimpse, it is reasonable to promote the liquidity, we also increased investment opportunities, more good. But in turn, think about: Why do people give you the opportunity to make a luck? Who is foolish?
or use an example to illustrate the dangers of asset securitization it, this circumstance has attracted worldwide care today is the subprime crisis:
in the United States , there is a considerable digit of low-income people, they can not loan to buy a house, because the U.S. housing loan review in agreement with rigid procedures for the review, they are not up to standard. However, since 1980, some U.S. investment banks began to reduce the loan threshold, which appears low credit standards than home loans, this is the
the emergence of the sub-prime, seems to be a good thing: for people who buy zero down payment to buy a house, is very baiting, however I have to pay more by anybody time of the drifting interest; for lending traditions, can get higher returns, they both behalf. 90 20th century, the U.S. economic to go well, not anything about subprime.Especially after 911, in mandate to assure settled operation of the U.S. economy, Greenspan desperate to turn on the water, 4 years, 25 continuous interest rate slits, the allied funds rate from 6.5% to 1%. This is about these days, the foam with mad expansion of opportunities. So, today's subprime crisis which, it is absolutely Greenspan's large value.
low amuse rates, without collateral, no down payout, home amounts are tall, do not buy a house namely definitely an idiot. Thriving in the United States, the paradise of the United States ... ...
the fastest growing in the sub-prime from 2003 to 2006, the investment bank assured profits, high profits, lenders real estate appreciation, absolute win-win location. However, always of which are based aboard money lenders can supply the premise, whether the person does not disburse off the debt when the loans, that may fall via the. The end of 2006, has been involved in the subprime mortgage 500 million U.S. households, the scale attained from 1100 to 1200 billion U.S. greenbacks.
bubble blown ample time to destroy into a crowded time, or how to grasp money? From 2005 to 2006, the Fed raise interest rates 17 times, the interest rate gradually increased to 5.25%. Real estate bubble began to burst. Subprime lenders have been that poor, then house prices have fallen, they could not loan. Investment bank loans to begin income people of the house, but then none ambitioned to recover the house now, and still continue to devalue, many investment banks have difficulty working together. Starting from February 2007, the problem was exposed as a outcome, New Century Financial Corporation first get on the floor.
If a problem is subprime lending, but also a lot of money a major accident. Because the plenary U.S. subprime real estate loans accounted for 14.1%, in about 1100 to 1200 billion U.S. dollars between the estimates, according to Goldman Sachs, which is only 400 billion U.S. dollars of bad debts. U.S. GDP in 2006, there is 15 trillion, entirely digestion the. Problem is that financial innovation can be hard on the inside - the asset securitization:
U.S. investment bank also know thatsubprime is after high-return high-risk, in order to discourage risks, and to find more source of funds to lend support on a larger scale in order to acquire more revenue. They have been fighting the mind of ​​financial innovation will be one unattached integrated package made of the sub-prime subprime mortgage-backed securities CDO. Do this affair in Europe and America's top investment banks are banks, like Merrill Lynch, Citigroup, Lehman Brothers, Bear Stearns, Bank of America, Deutsche Bank and so on. However, this high-risk ###### is something we all know, so the poor sales, how do? This hammer the bankers, they bond tranches: precedence products, intermediate products and equity products. Priority products and intermediate products of good quality and lower income than the equity products. He then base Moody's, Standard & Poor's credit agent of these world-class to precedence appraisal of a CDO AAA. Then, the bankers began to fist the large facilities:
first unsupervised It bought all the CDO and then sell it some day poke a basket on the CDO and the investment banks did not material. With the 3A level, but also highly profitable, a great many large investment funds and foreign institutional investors have favored to eat into the CDO.
the middle of the recess of the high-risk CDO and CDO equity may nobody wanted. Of course, this small could not test the knowledge of top bankers. They then pay for the establishment of an neutral hedge fund, then the middle of CDO and CDO equity hedge funds sold at high prices - at a after incident to all the hedge funds. Greenspan's empty ofterest rates in the assist, the situation is eminent, the real estate market, flowers, sub-loan misdemeanor rate is far lower than the aboriginal estimate. CDO buyers are holding CDO high profits which are compliant to hand? The results, CDO market has been deserted. Because there is no authentic price message for reference, the financial regulators to allow hedge funds in accordance with the mathematical model results among the appraisal criteria as an asset. This is equivalent to a rate of return allowed to casually blow. Soon, high profits attracted a large number of investors who clutch a lot of money into the middle of the occupation and equity CDO CDO hedge funds. Since all are optimistic about the CDO, hedge fund managers in the advertisement bank required to hold it to find mortgage loans, commercial banks can not help but to lose face. They lend a lot of hedge funds. During this period, hedge funds mortgage to the bank the highest leverage percentage can approach 15 times. Commercial Bank of hedge funds to get the money, again its own investment bank to buy more of the CDO. A faultless chaste circle.
be packaged as a cause of the subprime mortgage subprime mortgage bonds, the risk of individual loans packaged into bonds, the overall risk. Once part of the loan becomes a bad debt, the debt to a archive of subprime mortgages into Risk to the subordinated debt from the investment bank buyers hands. Currently, the subordinated debt are scattered effectively in the hands of five financial institutions, including banks (31%), asset treatment companies (22%),GHD Purple Butterfly 2011, hedge funds (10%), assurance companies (19%) and pension funds (18%) . Now, these financial institutions suffered heavy losses. The end of January this year, Citigroup, HSBC, UBS, Merrill Lynch, Morgan Stanley and other large banks and securities firms have written off 90 billion U.S. dollars; way, Europe's banks do not light damaged, including the French bank Societe Generale, BNP Paribas, UK Northern Rock, UBS, Switzerland.
purchased subordinated debt in all countries, the risk shifts to the outside of the U.S. - to help the U.S. poor people nigh the world purchase lend. Who said the capitalist system does not Lei Feng? It can be looked, this time the sub-prime bubble to explosion chief targets of robberies in the EU and the U.S. middle class. Buffett said well, these securities may be financial weapons of hunk dispose, favor a man-eating monster. Now, China is also busy with asset securitization. It appears that many Chinese people favor a monster, if it be eating do not eat people.
Now, meantime the middle of CDO and CDO equity sold well, but, if there is a default by the bankers who have to bear the risk, how can the risk be passed out? To conduct a financial innovation - Credit Default Swap CDS. CDS is like insurance contracts and financial derivatives. This product also by the composition of both the insured and the insurer, the insured is to issue CDO's investment banks. Insured to the insurer to sell CDO's default risk. Insurers can get a monthly sum from the investment bank revenue. Before the advent of the risks, the insurer does not need to take risks out of any funds and does not require the CDO and the insured have any narration, fair a commitment to CDO default risk on top of the head to get money on a monthly basis. Of course, the two parties sign a compact to CDS contracts can be sold to others. The CDS is indeed tempting, before a cent earned income without the pearly! This is not filling up the sky fall? Many financial institutions have a share purchase concert the insurer. Also, many institutional investors to buy CDO's side from the investment bank to purchase a CDS to hedge the insured. CDS does not want to fire are impossible. As a result, the investment bank in the hands of CDO risk and transfer waste out.
in the subprime market, Kai-shun automobiles of the day, the credit default swap contract is very inexpensive (that is, a low monthly fare paid to the insurer), because everyone there is no risk that the subordinated debt, low-risk nature of insurance contracts is a low price. However, in the sub-prime mortgage crisis, subprime loan delinquencies rise, insurance premiums began to rise, then buy a CDS on the very uneconomical. Before the insurer will pay a high price - they have to pay a default risk for the CDO.
thing here is not over. Also in the CDO's investment bank was once anew on the basis of financial innovation, which is what a good thing, that is, the investment bank to sell shares to their monthly proceeds base of the CDO, CDS published a fund accustom to purchase (do CDO underwriting people). In other words, buyers are now altitude of a bear's head CDO default risk to be assured on a monthly foundation there was money from the CDO, the CDO do not do anything before the accident; and, if the CDO default risk there, there is an investment bank where the first pad base pay, it will pay wage over others - have often listened people say the sky is falling wore high people, which met Wall Street back to true, this is the lantern are not looking to ascertain opportunity, not steal it called a fool! Various stipend funds, teaching funds, foreign banks and have joined the ranks of ... ...
fact purchase, equity CDO CDO default risk is maximum when the proportion of those big junk bond default when, where, what benefits? So, the day when the real collapse, the World artist of knowing, that he is the Wall Street wore.
popular in the CDO, the Wall Street talent who contrived the other financial derivatives, ABX, it is called sub-prime bond price concordance. Increased risk when the sub-prime, CDO prices fall, ABX indexes fell along. A morsel like the ABX index futures, stock index futures to profit short selling stock index, ABX subprime market can be bearish on the profit. The casualties of the subprime mortgage crisis over and over, there are several hedge funds that rely on this thing is a thriving business, one of which called Paulson's, even George Soros is the with learning of). Of course, Goldman Sachs also bearish on subprime mortgage market through an income of 40 billion dollars, offset by the subprime mortgage securities in more than 10 million loss. Their reach is not complicated: that is to buy CDS credit default insurance products (as insurer), short the ABX index-related derivative products. Bond defaults in the sub-prime growing time, CDS prices continue to rise, make a buy low and sell high, ABX index continued falling, short and make a fortune. In general, things that are short the market to go bear executioner capital markets, is not known ABX subprime market collapse in the course played a mini role.
When the whole world pay for the time when the subprime mortgage crisis, Wall Street had been skillful to some large sums of money, which is truly learned.
the American founding fathers had a famous saying: standards. If today dominates the United States or the United States as those founding dads, then the republican forces, financial derivatives is absolutely impossible in the United States to spread this far. They will not look at the wealth of their own people let other people looting. This is a line problem, antique and modern China, the crown exceptions. America today is the American democracy; However, the United States today, has absolutely not the freedom the United States.
now gotta look in a next-prime crisis, is a standard financial derivatives triggered by the financial crisis. Before the crisis to form a small subprime loans appearance pressure; fourth layer is the subprime CDO; fifth layer is a credit default swap CDS, there is still upon the sixth floor. When the third layer from the sub-prime loans were not, the whole pyramid collapsed. Without the above 3 derivatives, the crisis is controlled; may have the on 3 after God knows how much shuffled corporations, banks and countries.
subprime crisis is only a small inverted pyramid upside down, and if world GDP than the big times that the large inverted pyramid upside down, how will the some scenario? We can amplify the imagination, full play to your own imagination.
after perusing the sub-prime crisis, we can find the illegal nature of asset securitization, where: because debt can be made into bonds, the liquidity of bonds was so good, so Once the loans can not be the formation of dead debts, and that is buying bad debt, not paid debts. Bonds in the debt can not be made before the transmit of risk, lenders are very alert, or the loss was borne by its own; However, once allowed to securitization, the risk of lending institutions can be transferred, this time, it also concerned about the quality of loans Gao Bugao it? It is also to rigorous exam of loans eligible? It will only drag people desperate to loans, and loans made to sell bonds. Ye Hao investment by course of bonds, activate expense and value mentioning, can in a way, stimulate the economic development role, but the quality should be guaranteed in advance of loans, or loans to stimulate economic development is not, but buried land mines . In this sense, securitization is irresponsible to encourage lending institutions to lend, is the indulgence of economic crime. If lending is heating in the warming himself, then, loans made after the bond is the point of the fire, ignored.

In fact, financial innovation is to increase liquidity. No mobility is insufficient, although, also not too lusty liquidity. Take the river, the river flow is entirely stagnant water, to stink; but when the river flow is also the fastest in big distress. Because that is when the violent overrun. If a country's economy likened to a continent, then the money flow is the continent's rivers and lakes, the rivers and lakes where the water does not flow is not enough, because that would not be life cross the continent; whatever, is also flow too rapidly does not work, then, water will burst the embankment, damage infinite. When the rivers are all joined up with the waterway (the equivalent of more and more financial restrictions were deleted), the surface is a good thing that can distract the overrun to the pressure of the flood, but if something comes in a spiteful flood blocked some of the rivers, the irrigation water to a concentration of a river? Around the river will suffer, the embankment was washed away, the countryside was flooded fields ... ...
In fact, in the want of malignant devastating presence, mobility is unavoidable The. Because the flow of funds method that the normal interchange of commodities. An existing department of labor in the economy, the commute is that each individual must act to be carried out, as they are to survive; the contrary, we should worry about is that the consequences of superfluous liquidity - clearing the way for the manufacture of the crisis . Therefore,GHD MK4 Pure Straighteners, the financial control is required and have to be strict.

4, financial innovation to create a man-eating demon -

hedge funds, hedge funds and several aliases, One of the best hedge fund cried listening; fact, many of the financial calamity is that they made, so the name hedge fund is the most fitting; for the general requirements of the occupation's contribution of 100 million alternatively more, and the penniless miss , so called wealthy fund.
hedge funds, often through the manufacturing market price fluctuations in the market to get the distinction back to normal state in order to get excess profits. For example, in the Southeast eastern financial crisis, the Quantum Fund, through short selling baht along contracts to sell the baht and the Thai baht caused by plummeting revenue. It can be seen, the profitability of hedge funds is often based on the anguish of others above.
extremely leveraged hedge funds to lend from the bank to achieve the highest return for the intention. Through the leverage efficacy (several times customary), hedge funds can get very high profit margins. This seemed strange thing: In general, banks are very detailed allocation of goods, they think each other's repayment competence. Hedge funds may be why they give a high credit limit if it? Hedge funds act the trading itself is very dangerous, so why the big banks we trust them? You understand, in the manufacture of the fiscal crisis, they often can borrow hundreds of billions of dollars. Who would have such a big face? Another thing, if the banks can be advantageous so sure why they did not know to referendum on the money to do these things, but to borrow money to hedge funds do? This is not to others {awake|awake} it?
the organizational building of hedge funds is a associate of the general system. Fund investors do not partake in a capital investment activities; fund managers a part of the capital and capabilities, responsible for the fund's investment determinations. Because hedge funds are mostly personal and the high threshold,GHD MK4 Gold Straighteners, so the information is privileged funds do very good work. In order to control impose avoidance and escape in the U.S. market, hedge funds generally operate in the Bahamas and Bermuda and some other taxes low, loose control of the area up, only to raise funds to find investors outside the United States - the U.S. government actually be able to watch the Some people do not pay taxes in their fortunes beneath the eyes can be indifferent, and there can be no strange? Upside down in the market but they do not reproach them the U.S. government, which is why? Such as the subprime mortgage crisis this time, the use of high power lever in the front line fire ignition caused the subprime crisis is a global hedge fund.
In truth, people not only care, merely likewise everywhere guarding the hedge asset. For example, in 1998, when George Soros attacked Hong Kong, shuttle thump by the Government, which was originally the regional administration action in preserving local economic stability and protect the nice residents of property, U.S. officials and economists have been informed of being opposed to free mart principles, mar long-term interests of Hong Kong, is Hong Kong was always pilfer Soros is in the protection of our long-term interests?
2007 Group of Eight summit, Merkel advocated the implementation of the hedge fund imperative supervision by the government, and the operation of hedge funds, develop codes of behaviour. Merkel pointed out that, if I were you strengthen supervision, to operate within a global scale has reached 1.5 trillion U.S. dollars of funds of hedge funds may have citizen and global menace to the stability of financial markets. However, Merkel's counsel was strongly opposed to Bush and Blair, the Japanese did not dare say a word, only if we stand on President Hu Jintao and Angela Merkel, the same trenches. From here we can see, the backdrop is not a small hedge fund.
In fact, like hedge funds like Quantum Fund is itself an multinational financial forces, men's decease squads. They create financial instability through the hedge funds, pillaging the asset of other countries, shift the risk and liability. For example, in the manufacture of a crisis if the hedge fund won, distant above 100% profits; if lost, the result of bank lending to hedge funds to pay, the loss to become a burden on all shareholders of banks, because the hedge funds base itself is small, insufficient light is lost, but also all have come to notoriety. It really beautiful thinking!

Chapter VI, the doors of perdition and wishes of the Road

1, a great pioneering human:

From the Industrial Revolution to the present, less than 240 years, mankind has created enormous productivity, but also for their own demise in a hundred years is well prepared. Earth is the cradle of the Earth give us too much humanity,GHD Hair Straightener NZ, Mother Earth can we return what is it? The solicitation is no satiation. Look at today's Earth is altered into what we humans it:
(1) water pollution. Sheung Shui Earth district covered 380 million square kilometers, accounting for 70% of surface area. However, merely 2.5% of fresh water keeps, the actual person use of fresh water and tin amplify only 0.3% of the absolute fresh water. Compared with the 19th century, 20th century, globe population increased by 2 periods, and human water use has increased 5 periods. In some formative countries, approximately 50% and 60% of drinking water deserving apt unsuitable use of irrigation water waste; worldwide every annual about 4,200 billion cubic meters of sewage unloaded into rills and lakes, to 5.5 trillion cubic meters of fresh water pollution , which is equivalent to the absolute global freshwater runoff,GHD NZ, 14%; over-extraction of groundwater in many parts of the water class dripped to tens of meters; the earth is facing quite solemn water absence has: 12 million folk short of water, 3.0 billion folk lack water, sanitation, 3000000-400 every year people die from water-related ailments. 2025, the water crisis will scatter to 48 countries, about 35 million people will be trapped at the water. Now, we can not make water, we can only attempt to defend water. Do not consider this is unfounded, being held in Boao Forum as Asia, the leader of the Ramos could not mention a third globe combat over water into the sky as it?
(2) taint pollution to desertification. Excessive use of fertilizers and pesticides, and toxic air pollution, dust landing on dirt spraying everywhere, everywhere, forsook hazardous waste on the land constitutes an irreversible pollution. 110 countries (10 million) of pregnant arable land in the lower level. In Africa, Asia, and Latin USA, due to the loss of woods cover, arable land and pasture over-exploitation, overgrazing, soil erosion is very serious. Open land to convert crisp and can not long resist the air and rain erosion. In some locations, the annual soil detriment of up to 100 tons per hectare. Deforestation, deforestation, land reclamation, over-cultivation, overgrazing, exacerbated the situation of desertification. Now, the Earth every minute over 10 hectares of land swallowed by desert, that abandon at an annual rate of expansion of 7 million hectares. Increasing severity of desertification is threatening the survival of more than 10 million people, a important global environmental problems. (Related to this food crisis is gradually manifests itself)
(3) global warming. The report predicts that the latest United Nations agencies, if global greenhouse gas emission reduction intend can not be effectively implemented, in the 21st century global average temperatures will rise by 1.8 to 4 degrees Celsius. Under such circumstances, human beings will one day fall since the digging of the According to a representative 2,500 experts predict sea levels will ascend, in many densely populated areas (such as Bangladesh, China coastal areas and most of the Pacific and Indian Ocean isles) will be submerged. Temperature mushroom of agriculture and ecosystems will also have a serious clash.
(4) deforestation. A report said the latest worldwide abatement of forest area 13 million hectares every year. Deforestation not only affects biodiversity, will also influence water and soil, greenhouse gas emissions will also have detrimental effects. Big cities will worsen the alive conditions: mobbed, contaminated water, poor sanitation, no sense of security ... ... the big cities but also damage to the disorderly expansion of normal areas. Unlimited human culture, urbanization is becoming the current disadvantages.
(5) industrial pollution. Industrial caused millions of compounds present in air, soil, water, plants, animals and humans. Even as Earth's last major natural ecosystems of the ice sheet is also contaminated. Those alphabetical compounds, those ponderous metals, toxic productions that are condensed there in the whole food necklace, and ultimately threaten the health of plants and animals, reason cancer, guiding to reduced soil fertility. Most of the air in big cities with many heating, transportation and pollution caused by plant making. These pollutants threaten the health of tens of millions of people, causing many people lost their lives. Each spring, the two poles of the Earth still beyond the formation of the ozone cavity over the Arctic ozone loss of 20% to 30%, the Antarctic ozone loss of 50% or more.
(6) loss of biodiversity. Because of urbanization, agricultural evolution, deforestation and environmental pollution, natural areas become smaller, which led to thousands of species extinction. Earth to build up the rate of loss of species, nearly all the main ecosystems there is the problem of declining species. Scientists estimate that some species perish every day,GHD Leopard Grain, then the character of the food chain, each lost one species on the planet, often lead to more species associated with the disappearance. If human beings do not take fathom to inhibit as soon as possible on the world almost 1 / 4 species in the afterward 50 years will suffer a disaster of extinction. Biodiversity is the living context by biological and constitute a large biosphere system, if its balance is seriously broken, human terror to flee the same destiny of the dinosaurs.
look at a art of human change the world, is really ghastly. This is the conquest of nature? This is pure suicide! Now we should think about the good: what is the cause for humans to go down this road of no return it?

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