Full disclosure: I am a real dope when it comes to sophisticated financial stuff.
I am utterly confused by all the Wall Street disclosures which sound like mumbo jumbo and flat out lies to me.
But my instincts and what I feel tell me that there are dark and sinister forces at work all throughout the world. I have the distinct and nagging feeling that what we are all being told is one great, orchestrated and manipulated lie.
I keep checking my feelings and instincts against what I know to be true based on what I can touch and feel and experience first hand and I find nothing to assuage the great unease that hangs over me and all around me.
And then I read deep, complex and sophisticated stuff from people that are obviously far more knowledgeable than I am. I frankly don’t understand much of this stuff at all, but it all sounds very, very ominous to me.
From Zero Hedge:
Over the past month we have been closely documenting a major funding squeeze in the all important shadow economy – the “synthetic liquidity” conduit which far more than traditional sources of cash, has become all important for proper bank functioning over the past decade. Courtesy of adverse development in Europe, one by one various components of this unregulated funding scheme have become frozen necessitating the first of many central bank interventions on November 30 to provide liquidity to global banks, primarily to offset such shadow conduits as locked up commercial paper, repo and money markets. Logically, as noted over a week ago, European banks scrambled to obtain cheap dollars by borrowing over $50 billion from the Fed, and plug dollar shortfalls.
Yet as all band aid measures designed to offset a broken liquidity equilibrium fail eventually, it was only a matter of time before we saw a direct bail out by the Fed of one or more banks in the aftermath of the November 30 global “bail out.” Sure enough, we have our first clue that “something” happened in the week ending Wednesday December 14 that involved an upgrade of the Fed’s indirect (and thus untargeted) bailout of global banks, to a focused, and very much targeted rescue of one (or more) banks. And with some additional diligence, it may be possible to narrow down the date of an actual bank bailout: Tuesday, December 13.
