$2Trillion in Sub Prime Debt vs $1 Trillion in '08

[AncientwisdomParticipant 6089]

Billionaire fund manager Carl Icahn has pointed out the untenable situation the markets are in, contrasting the 08 crises with what is currently at hand:

You know, the subprime debt was only $1 trillion and look what it did. This time, you’ve got $2.2 trillion. It’s ridiculous… People are buying things they don’t understand

Global banks and governments have doubled down, leading one to think they perhaps designed another bubble to burst.

Meanwhile, the explanation from the left is that were in “recovery”. If the Fed truly believed we were in recovery they would raise the interest rate. They cant and wont because they know the economy cant substain itself.

The doubling down on subprime debt which lead us to ’08 makes me think we are in for a serious rude awakening.

Thoughts?

Resident cynic.

[MadmanParticipant 772]

If the market tanks too much they will make QE4 and keep it propped up another 8 or so years.

[chirParticipant]

2 trillion?

I will up that with the 1.5 quadrillion derivatives bomb waiting to go off globally. Technically thats more money than the worlds GDP by a factor of 100.

http://www.globalresearch.ca/global-derivatives-1-5-quadrillion-time-bomb/5464666

It is by caffeine alone I set my mind in motion, it is by the beans of Java that thoughts acquire speed, the hands acquire shaking, the shaking becomes a warning; it is by caffeine alone I set my mind in motion.

[Anonymous 18]

ps: I don’t know how to make it smaller in size, but it captures what needs to be done about the banking system.

[Ned TrentParticipant 4894]

Regarding such figures, I can’t help wondering: What’s the point of ever getting rich, even if it happened to be in an instant (ie. lottery win)…?

Because: the richer you are the more you got to lose …

I'd rather die a natual death with a clear MGTOW conscience somewhere off the grid than one within "modern" civilisation with a big stress mark on my forehead and a couple of dozen tubes plugged into my body. Back to the plantation..? Me..? Hey, literally: I won't ever fucking kid myself...YZERLMNTSIC

[NioZenParticipant 856]

Meh, don’t worry about that, worry about the +$600T in derivative exposure the major banks hold between them (bye bye Deutsche Bank!). And if you think the Fed’s balance sheet is really only $18T then I have a unicorn to sell you.

edit: just noticed chir, ya beat me to it – derivs is shum shcary s~~~. 1.5q is not a figure I’ve heard before, but wouldn’t be surprised – will check out your link. Cheers.

We only dream this bondage. Wake up and let it go. - Vivekananda

[HuevonParticipant 68]

The problem in 08 was that subprime debt was sold as so called “asset backed securities” so if they didn’t do that this time, the next step of the so called crisis will most likely start somewhere else. I agee with you guys on the derivates. Government bonds are also one humongous bubble.

During the Vietnam war the US government had inflated the Dollar already, being forced to undo the gold backing in 73 and cancelling of the Bretton Woods treaty in 75. The devaluation of the Dollar could not be stopped until the base rate of the FED was raised up to a staggering 19% in the early 80s. The rusult is today known as the latin america crisis. Many countries in latin america were just not able to pay their debt at these rates.

People have been loosing trust in paper backed currencies again since the crisis in 08. This time the FED will not be able to raise interest rated this high again, to make people stay in paper. The reason is very simple. If they would do this, their own state would go bancrupt.

[Ned TrentParticipant 4894]

One thing is for sure, once this quadrillion bomb is gonna go off in whichever way then this time most of us (who are not amongst the 5 % of them super earners but then maybe even half of them) won’t make it through without a scratch. So ready or not: the “big rip of capitalism” unfortunately is due waaaay earlier than the the “big rip” of the universe itself. Who needs to witness that anyway, when we are perfectly capable of creating our own DIY big (financial) rip…? – very morbid humor, I know –

I'd rather die a natual death with a clear MGTOW conscience somewhere off the grid than one within "modern" civilisation with a big stress mark on my forehead and a couple of dozen tubes plugged into my body. Back to the plantation..? Me..? Hey, literally: I won't ever fucking kid myself...YZERLMNTSIC

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