BLACK MONDAY — AUSTRALIAN BANK TO SHOCK WALL STREET
EXCERPT, businessspectator.com.au, 12:40 PM, 25 Jul 2008:
“The National Australia Bank’s decision to write off 90 per cent of its US conduit loans will have dramatic repercussions around the world. Wall Street will be deeply shocked when they understand the repercussions of what NAB has done. It is clear global banks have nowhere near provided for their exposures to US housing loans which in the words of John Stewart are experiencing a ?meltdown?.
We are now way beyond sub-prime. NAB says that it is suffering a 55 per cent loss on American housing loans ? an event that has never happened in the history of a developed country in recent memory. This is an unprecedented event and means that the cost of bailing out the US financial system is now far beyond the highest estimates. A US recession is now locked in, but more alarmingly, 55 per cent loan losses point to the possibility of a depression.
It means the cost of bailing out housing exposures to the two mortgage insurers will be so great that it will leave no room to bail out anything else, and there are several US banks that are now in big trouble. NAB says that the dislocation in the residential market is separate from the corporate market, but the flow on is inevitable.
While global banks have been writing down their balance sheet assets, few have tackled their conduit exposures which are off balance sheet, but to which they are ultimately liable.”
We need to understand of course that the “smartest” banks will be compelled to cut obvious impending losses first, and that the rest of “world’s” banking system will have to follow. If we understand that “interest” inherently and irreversibly multiplies debt in proportion to a circulation to inevitably terminal sums of debt… then unless the “banking” system again succeeds across the whole world in propping up a facade of sustainability by pouring free money into the deflation usury engenders, the events soon to follow are an indirect testament to inherent failure, and the fact only mathematically perfected economy™ can save us.
Rest assured however, that the banksters are hedging their bets that they can retain usury, even if usury inherently terminates itself, and with it, the hopes of sheeple.
Thanks again to Mario Sikorski, Poland.
RELATED EXTERNAL ARTICLES
- AUSTRALIAN BANK TO SHOCK WALL STREET — BusinessSpectator.com
The entire US banking system is insolvent — MATHABA.NET
“To find the players in all the corruption of the world, ‘Follow the money.’ To find the captains of world corruption, follow the money all the way.”
mike montagne — founder, PEOPLE For Mathematically Perfected Economy™, author/engineer of mathematically perfected economy™ (1979)