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Subject	Member Profile	Date = Posted
"Rasipedia" on = financial=20 collapse	RasputinLives	^NEW9/25/2008 = 1:48:21=20 AM
In order to = properly document=20 the current systemic, global financial collapse, and = to assist=20 the readers of this board in clarifying the = inter-related=20 issues regarding this on-going disaster, I have = constructed=20 what I have deemed to be=20 a: "Rasipedia" ...on the=20 subject. This Rasipedia consists of an = amalgamation of=20 my most-recent posts on this epic collapse, all neatly = organized into easy-to-find sections. I have also = included a=20 table of contents for quick location of information on = the=20 particular subject or subjects being = discussed. I will=20 be posting this Rasipedia as a blanket reply to any = and all=20 relevant topics other posters on this board might be=20 discussing at the time, and will refer to the proper = section=20 of the "Rasipedia" for my thoughts on the matter. = I am=20 providing this Rasipedia for the following=20 reasons: 1. What else is there to do while I = watch=20 the world collapse around me? 2. This = informaton may=20 prove useful to the readers here and also can be = shared with=20 the general population to help them understand the = "why"=20 behind them eating out of a dumpster, and living in a = tent=20 city 3. Because I am tired of re-typing all my = previous=20 posts from either memory or having to dig them out of = the=20 P-Bear archives in order to make or re-inforce a point = or=20 premise. So, with the above pre-mumbling = taken care=20 of, here is the=20 = "Rasipedia": Rasipedia: Table=20 of Contents: Section 1: The correct = fiatsco=20 amount (currently) of the "Hanktator Act" bailout=20 bill Section 2: Timeline of = "Fannie/Freddie Big=20 Bang" leading to worldwide, systemic financial=20 collapse Section 3: What will happen if = the=20 "Hanktator Act" is not enacted Section = 4: The=20 four questions that were never asked during the = Congressional=20 hearings on the "Hanktator Act" Section = 5:=20 Layman's explanation of the systemic, worldwide = financial=20 system collapse Section 6: Special = section: The=20 Fed's unprecedented move to backstop the entire $ = trillion=20 money market fund sector Section 7: = All=20 government and central bank efforts to date to combat = the=20 systemic, global financial system=20 collapse Individual Sections of the=20 Rasipedia: Section 1: the correct = fiatsco=20 amount (currently) of the Hanktator Act" To = combat=20 the incorrect fiatsco amount ($700 billion) currently = being=20 disseminated by the MSM regarding Treasury's = purchasing=20 authority of dead assets under the "Hanktator Act", I = provide=20 the following informaton: First, the link to = the actual=20 draft of the current bill: The number could actually be trillions, = so please=20 present the facts accurately. ...and here = is the=20 actual authorization (as of 9-25-08): Page 14 = of the=20 PDF: "SEC. 6. MAXIMUM AMOUNT OF AUTHORIZED=20 PURCHASES. The authority of the Secretary to = purchase=20 troubled assets under this Act shall be limited to=20 $700,000,000,000 OUTSTANDING at any one time, by = aggregating=20 the purchase prices of all troubled assets held and = any=20 expenditures made under section=20 10(a)." ...which translates = to: A=20 rolling pool, whereby TRILLIONS, not just "$700 = billion" of=20 fiatscos of worth of dead assets will be launderd = through and=20 the losses handed to the=20 taxpayer. Section 2: Timeline of = "Fannie/Freddie Big Bang" leading to worldwide, = systemic=20 financial collapse In order to help put = into=20 context the swiftly-moving events surrounding this = systemic,=20 worldwide financial collapse, below is a timeline of = the=20 "Fannie/Freddie Big Bang" that touched off the = derivatives=20 implosion, which is why so many instituions failed=20 simultaneously, worldwide. To = wit: Timeline of=20 "Fannie/Freddie Big Bang" CDS implosion, leading to = current=20 total, systemic, global financial = collapse: 1.=20 September 7th, 2007: Treasury takes over Fannie and=20 Freddie 2. September 7th, 2008: All = counterparties to=20 the multiple tens-of-trillions of CDS positions are = instantly=20 vaporized. They immediately start failing that very=20 week. 3. September 8th, ISDA issues an = emergency press=20 release confirming that there are huge (but = undisclosed)=20 amounts of CDS trades outstanding on Fannie/Freddie = debt.=20 Calls for emergency conference call with Federal = Reserve New=20 York in attendance 4. September 8th to present: = The=20 failed gamblers scramble to construct a list of the = failed=20 trades. 4. September 16th: The Fed, feds, and = ISDA step=20 in and try one last ditch attempt to make a market in = all the=20 destroyed derivatives positions during the emergency = "ISDA=20 Sunday Swap Meet", which is a complete, abject, utter=20 failure 5. Immediately after this failed = "Sunday Swap=20 Meet", the following players instantly fail: a. = Lehman=20 Brothers b. Merrill Lynch c. AIG d. Morgan=20 Stanley e. Goldman Sachs And the = Grand Total=20 of just the top financial institution failures so=20 far: 1. Fannie Mae failed ($2.5 = tril.) 2.=20 Freddie Mac failed ($2.5 tril.) 3. FHLB system = failed=20 ($1.3 tril) 5. Merril failed (.8 = tril) 4. Lehman=20 failed ($.7 tril) 5. AIG failed ($500 bil. in=20 CDS) 6. Goldman Sachs effectively failed ($2=20 tril) 7. Morgan Stanley effectively failed = ($1.5=20 tril) Sub Total: Approximately $12=20 trillion But also vaporized, are=20 every: 1. Hedge fund 2. Pension = fund 3.=20 Insurance fund 4. Mutual fund 5. Money Market = fundboth=20 in the U.S. and in all other major countries,=20 worldwide. Sub Total: Who knows? Probably = trillions=20 more Also vaporized, and even more = dangerously=20 so: 1. Some percentage of the $62 trillion = credit=20 default swaps market 2. Some percentage of the = $650=20 trillion overall derivatives markets Sub Total: = Who=20 knows? I don't even want to guess=20 anymore. Section 3: What will = happen if=20 the "Hanktator Act is not enacted Not = passing the=20 "Hanktator Act" will cause the near instantaneous = collapse=20 of: 1. All bank accounts by 95% 2. = All=20 401(k)/IRA/mutual fund/money market fund by the same=20 amount 3. Collapse of all McMansion prices by = at least=20 70% 4. No more car loan for five years, or at = rates=20 that would be outrageous. 5. A virtual = guarantee that=20 tens of millions would be thrown out of = work However,=20 even when the "Hanktor Act" is passed, these horrid = events=20 probably won't be prevented, just delayed for a few = weeks to=20 months. Section 4: The four = questions=20 that were never asked during the Congressional = hearings on the=20 "Hanktator Act" The four questions that = were never=20 asked during the Congressional hearings on the = "Hankzooka Act"=20 are: 1. Of WHAT exactly do all these = instruments=20 consist? (Categorically: MBS, CDOs/Squareds/Cubeds, = CDS, other=20 derivativtes) 2. Exactly WHO is holding=20 them?: 3. WHAT are the actual, verifiable CASH = FLOWS on=20 the instruments that the destroyed financial sector = are trying=20 to foist on the American taxpayer? 3.(a) WHAT = is a=20 reasonable estimate of the "worth" of these assets, = based upon=20 number 3 above? 4. WHAT "assets" has the = Federal=20 Reserve accepted in exchange for the fiat/Treasuries = flung=20 under the various "TAF-like" programs? From WHOM has = the Fed=20 accepted these "assets?" WHAT is the cashflow from = these=20 "assets?" At WHAT price did the Fed value these = "assets"? Will=20 the Fed be swapping these "assets" back out to the = players=20 with whom they did these deals? (And then will the = players be=20 dumping these assets onto the Treasury under the = "Hanktator=20 Act"?) (Ras): Four simple = questions. The=20 truthful answers to which would instantly collapse our = entire=20 economy and financial system even more so than it = already=20 has. Which is why we haven't heard them asked, = nor will=20 we hear them answered. Section 5: = Layman's=20 explanation of the systemic, worldwide financial = system=20 collapse Layman's explanation of our=20 situation: 1. The current "Ponzi Pyramid of = Death"=20 monetary system is crumbling. 2. Right now, = virtually=20 every single large bank, medium-sized bank, hedge = fund,=20 pension fund, mutual fund, money market fund, stock = broker and=20 insurance company has failed or is failing. All the = phony=20 paper they have been trading back and forth is = virtually=20 worthless. 3. Somewhere between $10-$20 = TRILLION=20 (estimates are hard to make due to the opaque nature = of the=20 derivatives markets) in debt and derivatives "value" = has been=20 wiped off the books of the above-mentioned = players. 4.=20 The players are failing left-and-tight. ALL of the = biggest,=20 oldest Wall Street banks, plus the largest insurance = company=20 plus the two largest mortgage companies (Fannie and = Freddie),=20 plus the entire money market, failed in the span of = two weeks.=20 The rest of the thousands of institutions worldwide = are=20 mortally wounded will be toppling over soon. 5. = Governments and central banks worldwide have already = pumped=20 approximately $5 trillion collectively to date to = fight this=20 systemic, sychronized, worldwide, complete, utter = collapse. So=20 far, their efforts have failed. 6. At this = point, the=20 fight will continue to the death. During these next = few weeks,=20 months, and even years the "economic convulsions" = between the=20 "Ponzi Pyramid" debt collapse destruction-deflation = and=20 government and central bank=20 reflation/monetization/nationalization efforts will = rage, with=20 the back-and-forth battles getting wilder and wilder,=20 until: 7. The entire world is plunged into = financial=20 demise, with the people of all the nations suffering = mightily.=20 "Great Depression II" will ensue for the next five to = ten=20 years. 8. During this time, if the world = doesn't blow=20 itself up in all the wars that will surely follow, = tens of=20 millions of people in the U.S. are going to learn to = fear debt=20 and living beyond their means. This is a good=20 thing. .Eventually, hopefully, the U.S. pulls = through=20 in one piece, the people''s stock, bond, and housing = assets=20 are decimated, many have lost their jobs, but we all = learn=20 discipline and our national character = grows. 10. We=20 come through chastened and humble. Exactly what we=20 need. Section 6: Special = section: The=20 Fed's unprecedent move to backstop the entire $ = trillion money=20 market fund sector The Fed's unprecedented = move to=20 backstop all Money Market funds: First, a link = to the=20 Fed's "Interim Final Rule" on their loaning to the = failed=20 financial institutions enough fiatscos to try to = revive the=20 moribund ABCP scheme: But we''re not desperate or anything. We = just=20 thought we''d do this outta the blue, on a Friday = morning,=20 because we weren''t very busy Now, the KEY = phrase=20 from this document is this (with my emphasis=20 added): "To reduce liquidity and other = strains being=20 experienced by money market mutual funds, the Federal = Reserve=20 System adopted on September 19, 2008, a special = lending=20 facility that enables depository institutions and bank = holding=20 companies to borrow from the Federal Reserve Bank of = Boston on=20 a NON-RECOURSE basis if they use the proceeds of the = loan to=20 purchase certain types of asset-backed commercial = paper (ABCP)=20 from money market mutual funds (ABCP Lending=20 Facility)." Did you catch that part = about=20 "non-recourse"? Do you know what that=20 means? Well, it means that when--not if--the = ABCP the=20 institutions hand the Fed in return for freshly-flung = fiatscos=20 goes bad, then THE FED WILL JUST EAT THE LOSS AND NOT, = I=20 REPEAT NOT, TRY TO RECOVER THE FIATSCOS FROM THE=20 INSITUTIONS!!! Section 7: All government = and=20 central bank efforts to date to combat the systemic, = global=20 financial system collapse Government and=20 CentralBank efforts from March, 2008 to present to = fight=20 Financial Collapse: The sum, fiatsco-wise and = in terms=20 of actual actions, of the efforts of the various TPTB = branches=20 to fight the debt destruction convulsions and the = related=20 costs incurred to do so (so far). To wit:=20 Federal Reserve efforts undertaken in the = last one=20 and one-half years to fight the credit collapse: = 1.=20 Dropped Fed Funds rates 325 basis points, some of = these moves=20 being surprise rate cuts. 2. Also pounded down = discount rates by similar amounts and means. = 3.=20 Created unprecedented, even borderline=20 Constitution-contravening, multi-hundred-billion = fiatsco TAF,=20 TSLF, PDCF,"Fed,LLC", "Fed, AIG", "Fed Euro-swap" = programs=20 Then, extended time-frames, amounts and frequency of = many of=20 those programs. 4. Instituted the stunning = "Fed-FDIC"=20 program on Friday whereby the Fed backstops ALL money = market=20 funds (total fiatsco exposure amount: over $4 trillion = by=20 itself), accepting worthless ABCP paper with = NO-RECOURSE to=20 try to stop a run on the funds by panicked bagholders. = 5. Accepted hundreds and hundreds of billions = (and now=20 perhaps trillions) of fiatscos of totally dead = "assets" from=20 failed Wall Street firms and will not disclose what = those=20 "assets" are, nor from whom they were = accepted. 6.=20 Offered JPM "sweatheart loan" as part of Lehman=20 liquidation 7. Suspended "Rule 23(a)", allowing = commercial banks to fling fiatscos to their failed = investment=20 banking arms 8. Began outright purchases of = Agency debt=20 on Friday, September 19th 9. Allowed Goldman = Sachs and=20 Morgan Stanley to--with no waiting period--change from = investment banks into commercial banks. Changed = "rules" so=20 that Morgan Stanley can continue to perform investment = banking=20 functions. Changed the "rules" regarding minority = ownership of=20 these giants 10. Did a special $25 billion = "TAF" to=20 Goldman and Morgan 11. Raised "SOMA" account = credit=20 limits by 25% from $3 billion to $4 = billion (Total=20 liquidity/reflation/monetization effort costs on the = part of=20 the Fed): Hundreds of billions of fiatscos, = to=20 literally trillions of fiatscos, depending on how much = more=20 fiat they are willing to fling to prop the money = market funds=20 and other failures, but I will only estimate $1.25 = trillion so=20 far. (Ras): That is one impressive = list of=20 accomplishments by the Fed in their battle against the = debt=20 destruction convulsions. Breaking all previous rules,=20 precedents and protocols, the Fed is well on its way = to=20 playing out Bernanke''s promised "Roadmap to Weimar" = as laid=20 out in his famous 2002 speech: "Deflation: = Making=20 Sure it Doesn''t Happen Here". However, = these=20 stunning, creative, and even nefarious moves on the = part of=20 the Federal Reserve don''t represent the total effort = by TPTB=20 to stave off economic collapse. Far from it.=20 Next we will focus on the=20 Treasury/Administration/SEC/FDIC gang''s efforts and = see just=20 what rabbits they have pulled out of their collective = hats.=20 Trust me, they have produced an entire litter of = "reflation=20 bunnies" in their attempts to keep this collapsing = system=20 intact. And here they are:=20 Treasury/Administration/SEC/FDIC=20 efforts: 1. Proffered "Economic Stimulus Checks = for=20 Sheeple" program of $150 billion 2. Floated = various=20 failed "Super SIV" programs before turning to the "big = gun"=20 efforts described below 3. Demanded, and = received, from=20 Congress an $800 billion (so far) "Bazooka" to = nationalize=20 Fannie, Freddie, FHLBs. 4. Within six-weeks, = used that=20 bazooka to take over the GSEs, injecting an initial = $200=20 billion into these fallen frauds and also instituted a = Federal=20 Reserve-like function of monetizing GSE MBS. Also, = offering=20 "liquidity" for MBS 5. Pulled off two emergency = funding=20 Treasury auctions totalling $200 billion to give = Federal=20 Reserve more ammo to fire at collapsing financial = institutions=20 worldwide 6. Demanded "Hanktator" emergency = legislation=20 from Congress, giving Treasury literally dictatorial = powers=20 over the entire financial system. Further demanded a = $700=20 billion "pool" authority to keep shuffling dead assets = from=20 Wall Street banks into government (and taxpayer''s) = lap.=20 Further demanded that instead of just real estate = assets, has=20 authority to purchase any asset from any failed = gambler. ZERO=20 accountability to any entity 7. Arranged = "shotgun=20 weddings" between failed Wall Street banks, commercial = banks=20 and major mortgage originators 8. On = Friday,September=20 19th., announced they were turning the GSEs loose to = once=20 again start snapping up dead MBS from the failed = financial=20 system 9.The FDIC quietly allowed banks and = S&Ls to=20 practice "foreclosure forebearance" which gives these = failed=20 institutions the authority to pretend that all their = deadbeat=20 real estate loans are "performing". Also, have quietly = shut=20 down or married off failed banks (And are just = beginning this=20 last effort, with perhaps thousands more to = go.) 10.The=20 SEC ruled that "Short-Selling Seditionists" are a = financial=20 threatand released a 799-member "untouchable" list of = failed=20 financial institutions which cannot be shorted. This = action=20 came after a smaller version of same was instituted in = July. (Total = nationalization/stimulus/reflation=20 effort costs on the part of = Treasury): Estimated=20 $2-plus trillion so far, with open-ended commitment = going=20 forward. (Ras):Once again I have to = confess=20 pure,unbridled shock and awe at the impressive array = of=20 weapons that this particular branch of TPTB has = amassed--and=20 used--in their battle against the evil forces of = deflationary=20 debt collapse convulsions. Yet, despite = outlining the=20 above massive and unprecedented steps taken, we''ve = not yet=20 completed our quest to document all TPTB''s powers and = programs undertaken to date. Let us do so now: = Congressional efforts: 1. Passed the = proposed $150 billion "economic stimulus" program = suggested by=20 Treasury/Administration 2. Passed the "Save the = Homedebting Sheeple Act" with an estimated cost of = $300=20 billion (but will surely be much more) 3. Then = tacked=20 on the "Bazooka" provision to allow Treasury to = nationalize=20 Fannie/Freddie for another $800 billion (so = far) 4. Now=20 will pass, immediately, the afore-mentioned = "Hanktator" act,=20 giving Treasury unprecedented dictatorial powers over = the=20 failed financial system and multiple-trillions of = fiatscos to=20 do so. 5. Just passed $25 billion aid to auto=20 manufacturers (Total stimulus/reflation = effort=20 costs on the part of Congress, avoiding = double-counting costs=20 already attributed to Fed/Treasury = above): $300=20 billion to $1 trillion. (Grand Total ALL=20 Reflation/Nationalization/Monetization Costs to Date, = U.S.=20 only): Approximately $ 4 trillion. So=20 far. (Grand Total ALL=20 Reflation/Nationalization/Monetization Costs to Date,=20 worldwide): Approximately $ 5 trillion. So=20 far. .

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