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Collateralized Debt Obligations (CDOs) are risky because the wizards tend to use whatever stock happens to be the most popular at the time so they can TALK THE VALUE WAY UP using PURE RHETORIC and capitalize in that stock by using leverage.
Since so many recent IPOs seem to be risky start-ups that are not profitable the new financial ticking time bomb may blow up and be what causes the next market collapse if way too many IPO stocks have been converted to derivatives.
The Bet may already be made that causes the next collapse after the Wall Street Wizards get through manipulating.
There are citizens who believes the last Stock Market collapse and subsequent BIG SHORT by Goldman Sachs and the absurd profiteering on other investors misery is all a scam to get wealthy by going short and using manipulation and they may be correct.
The Fiduciary ethics violations will eventually lead to Federal indictments and if Eric Holder refuses he too is culpable of treason.
What else can I help you with?
What does monetization of the debt mean?
It means that money is printed and injected into the banking system such that more funds are available to pay down the national debt (potentially speaking). Even so, the overall debt ceiling usually needs to be raised - when the economy is in a downturn. The current debt ceiling is at 13 trillion plus dollars - and by January, 2011, will need to be raised (by the Congress) to 14 trillion plus dollars, in order that the U.S. not enter into default on its debt obligations (because this would cause a worldwide economic collapse - no exaggeraton here).
What effect does monetary and fiscal policy have on the automotive industry?
In a monetary system subject to interest/usury, monetary policy effectively prescribes the limitations to which all industry is subject. That is, merely to maintain a circulation subject to interest, it is necessary to perpetually re-borrow what we pay against principal and interest obligations. Payments against principal effectively then cannot pay down the sum of debt, as they must be re-borrowed back into circulation as subsequent debts equal to the former sum of debt. But as payments against interest obligations count none against former debt and are necessarily re-borrowed then as new debt above the previous sum of debt, thus the sum of debt increases in proportion to the circulation by so much as periodic interest on debt. This perpetual multiplication of debt in proportion to the circulation has numerous effects, including driving industry from countries subject to faster rates of multiplication. Servicing the multiplying proportions of debt erodes potential profit margins and forces the industries to countries where for instance labor "markets" are further disadvantaged than the labor pool of the original country of industry.
What is the economic reason for making a risky investment?
An investment is considered risky if the probability of loss is high. However, risky investments can also produce dramatic gains. So if you want to speculate that a given risky investment will pay off, you have to balance that against the possibility that you will lose some or all of the investment. That's why rash or all-or-nothing investment strategies lead to ruin.
What was national debt in 1988?
so far the national debt is $9,414,780,866,691.06 as of 18 Mar 2008 at 06:29:29 PM GMT
What is the total national debt of the United States?
Currently over $9.6 trillion. Keep in mind that the "total national debt" = "total public debt" + "total intergovernmental debt". Often when you hear that the "national debt" has been decreased (i.e. during the Clinton years), they mean only that the "total public debt" has been decreased, which is the amount of government-issue debt held by the public. HOWEVER, the other component of the "total national debt", "total intergovernmental debt", is just as important - it is the amount of money the government borrows from itself to pay off public debt. This is what is contributing to the future meltdown of the social security system: the government borrows from current social security surpluses (that are the result of all the baby boomers still paying social security taxes and not retiring and receiving benefits yet), and uses these borrowings to reduce its "public debt". BUT, when baby boomers start retiring and the social security system starts owing much more money than it is taking in, that money will not be in the social security vault because the government used it to pay off its public debt. Barring a MAJOR reform before this happens, this will result in either a) massive, massive tax increases to fund these social security obligations, b) massive amounts of money being borrowed, resulting in a likely $10-40 TRILLION increase in the national debt over the next 20-40 years, or c) these obligations not being met. This is why if you are under 40 you should hate the AARP... you hear nothing about this crisis in the election talk, but even if you end up having to pay 50-60% income tax twenty years down the road so your parents' generation can comfortably retire, your generation will still face a huge shortfall in your social security that it will have to somehow account for down the line. FORM AN AAYP (American Association of Young People) ASAP, you are being cruelly and recklessly taken advantage of by the preceding generation.
What is a collateralized loan?
when i was born so on July 30 1997
What are the names of some organizations which can help with consolidation of unsecured debt?
Obligation alleviation organizations assist you with settling your obligations so you can proceed onward with your life. ... furthermore, unstable Visa obligation can be particularly dangerous for buyers. ... You have to have in any event $7,500 owing debtors and be a while behind on your ... Merge high-interest obligations into a solitary lower program installment. affordabledebtconsolidation
Where can one get a personal debt consolidation loan in the UK?
One can get a personal debt consolidation loan in the UK at places that offer loans. Debt Consolidation is taking out a loan to pay out other loans, so any place that gives out loans would help with debt consolidation.
Why should we expect the flotation costs for debt to be significantly lower than those for equity?
Flotation costs for debt are typically lower than those for equity because debt is considered less risky for investors. Lenders have a higher likelihood of being repaid, so they require lower fees and costs compared to equity investors who take on more risk and expect higher returns.
What caused Arnold to fall so heavily into debt?
Arnold fell heavily into debt primarily due to a combination of risky financial decisions, overspending, and a lack of proper budgeting. His investments in high-stakes ventures did not yield the expected returns, leading to significant losses. Additionally, lifestyle inflation and accumulating expenses further compounded his financial troubles, ultimately resulting in overwhelming debt.
What does monetization of the debt mean?
It means that money is printed and injected into the banking system such that more funds are available to pay down the national debt (potentially speaking). Even so, the overall debt ceiling usually needs to be raised - when the economy is in a downturn. The current debt ceiling is at 13 trillion plus dollars - and by January, 2011, will need to be raised (by the Congress) to 14 trillion plus dollars, in order that the U.S. not enter into default on its debt obligations (because this would cause a worldwide economic collapse - no exaggeraton here).
What are some examples of corporations that can help with debt management?
Examples of corporations that can help with debt management include consumer credit agencies, such as Consumer Alliance Processing. Private companies such as Ameridebt and DebtShield also help with debt management.
What effect does monetary and fiscal policy have on the automotive industry?
In a monetary system subject to interest/usury, monetary policy effectively prescribes the limitations to which all industry is subject. That is, merely to maintain a circulation subject to interest, it is necessary to perpetually re-borrow what we pay against principal and interest obligations. Payments against principal effectively then cannot pay down the sum of debt, as they must be re-borrowed back into circulation as subsequent debts equal to the former sum of debt. But as payments against interest obligations count none against former debt and are necessarily re-borrowed then as new debt above the previous sum of debt, thus the sum of debt increases in proportion to the circulation by so much as periodic interest on debt. This perpetual multiplication of debt in proportion to the circulation has numerous effects, including driving industry from countries subject to faster rates of multiplication. Servicing the multiplying proportions of debt erodes potential profit margins and forces the industries to countries where for instance labor "markets" are further disadvantaged than the labor pool of the original country of industry.
What did Robert Morris propose to help pay national debt?
so they can be out of debt, and so they can buy land
What is the superlative of debt?
debt is a noun so doesn't have a superlative form.
Who is responsible for marital debt?
Both of the spouses are responsible for the debt. They both benefited from the debt, so they are held responsibility.
How do you find The risks and hazards in the school?
Do something bad and risky, and then you know that its risky so you can say its a risk. and hazards, easy school... = teachers. theres your hazard
