Jim Sinclair states that a major international auditing firm is currently involved in an emergency Wall St. project with over 900 consultants calculating valuations for a ‘suddenly devaluing portfolio of CDO’s’.
Perhaps Jamie is having trouble unwinding The Whale’s IG9 tranche?
From Jim Sinclair:
There is a big problem brewing again in the OTC derivative market.
A major international financial auditing firm is currently involved in a massive project on Wall Street that presently has over 900+ consultants involved, which is massive and beyond even the size/scope of the Fannie Mae restatement several years ago.
They’re grabbing any senior financial analyst and software expert that they can to help this “unnamed” major Wall Street bank calculate valuations for a suddenly devaluing portfolio of Credit Default Obligations that they have heavily invested in.
This auditing firm is charging nearly double their normal billing rate and is getting it, no questions asked.
With both The Morgue and Morgan Stanley receiving 2 notch downgrades Thursday, we’ll let our readers speculate on which of the two TBTF’s Sinclair is referencing.
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http://demonocracy.info/infographics/usa/derivatives/bank_exposure.html
I`ve heard it said that the President could void all these contract. The law of physics states that every action has an equal and opposite reaction. What exactly that reaction would be is unknown. The smart money say`s it will not be good for the bankers. Of that I am sure.
Ag has popped .80 cents today, on no improtant news that I have seen. Probably some buy stops got triggered. When derivatives go under. Expect MASSIVE moves upward in PMs. MASSIVE.
Here are two suggestions.
#1 Break out the Thesaurus and come up with as many words that describe ‘default’ as you can. Haircut has been used on the Greeks and they ended up with $400 billion in debt so you have to be creative.
#2 Take that list and apply for work at the auditing firm. Tell them you are a super genius at this sort of analysis. These dorks won’t check you out when you tell them you have 50 new words for “default’ They just want new warm bodies to engage in a cover up to the CDS fiasco. The ISDA will never allow the derivatives to come to fruition and collapse our banking empire. So long as they can pretend the defaults never happened, using new and creative BS wording, we will probably walk past this mess. If worked for the Greeks and their ‘haircut’ That save JPM a $5 billion CDS hit. MFG bit the big one however. We may see some sacrificial lambs thrown to the CDS wolves to satisfy the yearning masses lusting for blood but the TBTF banks will deflect the worst of the storm. (Think B OF A or Goldman Sachs) IMO
Here are two suggestions.
#1 Break out the Thesaurus and come up with as many words that describe ‘default’ as you can. Haircut has been used on the Greeks and they ended up with $400 billion in debt so you have to be creative.
#2 Take that list and apply for work at the auditing firm. Tell them you are a super genius at this sort of analysis. These dorks won’t check you out when you tell them you have 50 new words for “default’ They just want new warm bodies to engage in a cover up to the CDS fiasco. The ISDA will never allow the derivatives to come to fruition and collapse our banking empire. So long as they can pretend the defaults never happened, using new and creative BS wording, we will probably walk past this mess. If worked for the Greeks and their ‘haircut’ That save JPM a $5 billion CDS hit. MFG bit the big one however. We may see some sacrificial lambs thrown to the CDS wolves to satisfy the yearning masses lusting for blood but the TBTF banks will deflect the worst of the storm. (Think B OF A or Goldman Sachs) IMO
The over-the-counter-taking-it-in-the-ass market.
Ohhh Imminent banking collapse, what a shock. Time to trade those greenbacks for the shiny stuff before they close the ATMs, and keep stacking with a smile, the winners are the stackers. You cant print Gold, but you can certainly buy it with Fiat…. Only for a short time folks… Bye Bye JPM
This is the news I’ve been waiting for, it’s getting closer folks, when the Derivative Market goes you won’t be able to buy silver or gold as it will be away to expensive. I’m gonna Stack, Stack, Stack when I get the chance. Anybody want to buy a nice Plow Truck or Van, don’t think I will be going anywhere this winter. LMAO
All kidding aside, take notice of the Derivatives folks and forget the rest of the shit that’s happening, when they crack it’s all over.
I agree, Marchas45. The derivative market is the nuke in the room while everyone is running around, falling all over themselves, and worrying about unregulated lady fingers or other trivia.
Yeah Silver Dollar, the pres. probably could put a stop to it. But look at what side he’s on. And, I really don’t think the elites will allow it. I agree with M45, the derivatives will blow before anything is done.