I don't think it's dyslexia, I think it's lelandia
________________________________ From: lelandj <[email protected]> To: ProFox Email List <[email protected]> Sent: Thursday, October 27, 2011 5:16 PM Subject: Re: [OT] 50% haircut On 10/27/2011 04:03 PM, Pete Theisen wrote: > lelandj wrote: >> On 10/27/2011 09:52 AM, Nicholas Geti wrote: >>> This is a real mess. It has to be voluntary so no one knows for sure if the >>> banks will go along. I am just getting snippets from the news and probably >>> have it wrong but here is my take for now: >>> >>> The French and Germans are going to establish a fund of something like 200M >>> Euros as a guarantee to future bank bond holders. (I am not sure how this >>> works.) Then they will set up another imaginary fund of trillion dollars >>> (Euros?) that will sell bonds to capitalize it. The Germans, French and, >>> they hope, the Chinese will buy these bonds. The Germans and French will >>> issue debt to buy their share. Then this fund will buy Greece bonds. In >>> other words they are creating a hot air balloon out of nothing. The >>> leveraging will be so incredibly high it makes Madoff look like a piker. It >>> looks like some kind of Ponzi scheme to me. If you or I were to do this, we >>> would be going to jail. >>> >>> I am not sure I got the explanation above right but the gist is that the >>> leveraging will be 1000 times or more. After 10 years Greece's debt will >>> drop to 125% of their GDP. In other words it isn't going to happen. With all >>> the austerity plans that must be put in place, Greece's GNP will be >>> contracting as well as suffering continued unemployment. >>> >> This sounds a little like how the Federal Reserve operates. When the >> economy is growing and demands for loans are high, the Federal Reserve >> loans money to regular banks at the prime interest rate. The regular >> banks in turn loan the money to their customers at rates higher, but >> relative to the prime. This is one way in which money is created, but >> if the economy get to hot, inflation follows. >> >> Also, the Federal Reserve will horror checks > Hi Leland, > > We certainly need horror checks. Especially come Monday night. Well, my spell checker didn't like "honor", so I change it to horror, but I really don't know why. LOL Regards, LelandJ _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[email protected] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious. --- StripMime Report -- processed MIME parts --- multipart/alternative text/plain (text body -- kept) text/html --- _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[email protected] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
