[FoRK] $30B a bargain for what it looks set to achieve?

Adam L Beberg <beberg at mithral.com> on Wed Mar 19 12:20:02 PDT 2008

Jeff Bone wrote on 3/19/2008 11:11 AM:
> One other bit...

No disagreement here, I just play with money too ;)

The problem is the leverage and how fast the whole system goes to shit 
if there is even a small move.

Lets assume that the leverage on that 500T is "only" 100:1 (it's way 
higher, but anyway) That's still 5T. And a 1% move makes it worthless. 
Now, of course you have a hedge to that, and a hedge to _that_ hedge, 
etc, but eventually you get something unhedged and some money was 
created from nothingness to do it all.

The bottom line is that housing and commercial is headed back to 100x 
rent where is belongs, and everyone that bought property in the last ~7 
years will be deeply underwater. High paying jobs are disappearing left 
and right. Almost every level of government is facing severe shortfalls. 
Our infrastructure is 5T behind in maintenance (thanks baby boomers!). 
And the boomers are heading into retirement and expect to live it up on 
social security and medicare (yea right). And have you talked to a 
farmer lately, some major shit going down in that realm.

We're nothing like out of the woods yet.

Adam L. Beberg

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