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« How to Make, or Lose, a Fortune in Junior Exploration Stocks | Main | Finance Ministers Fail to Resolve Currency problems »
Monday
Oct112010

Securitized Mortgage Debt becomes more murky by the minute

Jim Sinclair Foreclosures 12 October 2010.JPG

We have just received this missive from Jim Sinclair which we think will be interest to you as it will bring you right up to speed on the sub prime mess. Its consists of a few notes and a video that is well worth watching, as scary as it is.



I am asking for your attention again because of the depth of the fraud and now the size of the securitized mortgage debt OTC derivative pile of garbage that is in the trillions. This entire mountain of weapons of mass financial and social destruction is now in question. I have been telling you this for more than 2 years since the manufacturers and distributors of this crap were called by the NY Fed due to the loss of control over the paperwork.
 
I had dinner with my former partner, then lead director of and CEO of Bear Stearns. I could not contain myself so I asked him why he did so much business in OTC derivatives which were certain to bankrupt them. The answer I got was it was more than 50% of their profit. The right answer should have been it was more than 80% of their earnings.
 
Securitized mortgage debt is going to be the final shot that kills all kinds of financial entities in the Western world. The biggest holder of this putrid junk is pension funds.
 
Please! If you have not listened to all of the following video, do.
Please forward this to your friends.
 
The fellow with the sign that says the world is going to end is WRONG. Financially, it ended with the flushing of Lehman
 
Father, before you forgive them, please consider that they knew exactly what they were doing.
 
This is the largest fraud in the history of capital markets with the facts outlined with humor.
 
Click here to watch the video...


From first impressions it looks as though the pension funds are about to take a financial bath, which we could well do without just now.

It also raises the question of just why did a pension fund buy a package without being fully familiar with what was in the package. If they are that silly we have to question the wisdom of all of their investment decisions. It doesnt look to clever does it?


Back to our latest venture which was the launch of an Options trading service we are pleased to report that it is going very well so its a big thanks to all those who have signed up for it and the supportive emails that you have sent us.

SK Chart 11 October 2010.JPG

The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.


Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.



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