Merry Christmas from Washington!

[Fransisco]

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[jensend]

fred's always been a lousy actor. i was really waiting for him to offer some alternative but he didn't deliver. i guess that wasn't in the script.

[Fransisco]

That's one Bah Humbug, keep the spending going from jensen!

[classicalliberal]

The definition of derivatives is financial instruments created by market participants so they can trade and/or manage more easily the asset upon which these instruments are based. Their values are derived solely from an underlying interest which may be a commodity such as wheat or a financial product such as a bond or stock, a foreign currency, or an econmic/stock index. The current financial crises is caused to some degree by the subprime mortgage crises which is where banks and lender were lending money to those with bad credit because they were speculating that the asset value (house) would be worth more if they defaulted. Loan securitization is when banks bundle up loans and other interest paying securities and sell it in the over-the-counter markets to get the loans off their books. Companies like Moody's who are supposed to rank the various securities in terms of their credit risk did a poor job of analysing the risks associated and then the people of bad credit started defaulting and there was a large supply of forclosed homes on the market which has brought the housing prices down significantly in the US. Derivatives have been around since the 1850 with the Chicago Board of Trade and they significantly reduce the costs of doing business because risk can be transfered to those who are willing to take it, like $7 corn futures as an example. no end user wants to buy corn that high, but some speculator might and thus you can hedge corn production at around $7 per bushel when the cash market doesn't want it. Derivatives are an excellent tool and unfortunately have a bad rap now but it is not necessarily the fault of the derivatives.

[TOM4CWB]

Jensend,

I did hear him ask us to use 'Common Sense' to fix this problem... what was wrong with that?

SERIOUSLY THOUGH...

Fransisco... we need to do a special on the CWB's new Variable pay scheme!

The more the CWB managers... can discount our wheat... of course to make the 'customer' happy (to get extra bonus points)... and convince we slaves in the 'designated area' that CWB PRO's are fair prices (even though the 'target pricing pace' and PPO levels are at $100/t discounted basis/priced levels... [worth some 35 bonus points in this ponzi scheme]

And that 'discretionary' losses of a couple of hundred million $$$... simply caused the CWB sold early last pool year... and then bought back at the top of the market last winter... [which is all within our tolerance levels of the 'single desk' and contingency fund financial capacities]

That These brilliant CWB managers moves are be rewarded with freshly elected and minted 'single desk' directors... WHY shouldn't CWB managers be receiving up to 30% bonuses... for such brilliant mismanagement of my families money and farm!

Wow... Franny... the world is truly spinning as it should... we and the CWB... equally as messed up as the US/FED & government!

Now lets see...

To top the new year off...

Can we get Iggy and Jack in power... in the coalition first thing after the budget... and complete the COUP!

Then the Quebec separatists would be forever thankful!!!

Isn't this why we exist... to tear our country apart... in the most effective way possible???

What do you think Fransisco... should we make our own movie???

[jensend]

not advocating spending because that won't work. we've had enough people tell us what caused the situation, none of these clowns can give us any suggestions for dealing with it. we know how we'll end up - how do we get there with the least dislocation and strife? fred, after his joke of a campaign, should lay low and not look for youtube time.

[Fransisco]

Here's a thought, if we know what caused it how's about we do the opposite?

Less government spending, less regulations, less debt, less taxes, get the government out of monetary policy and move back to the gold standard.

Like Peter Schiff is constantly saying we all spend too much on borrowed money and nobody saves anymore. We need to get back to productivity and savings while moving away from consumption and debt.

This trying to re-inflate the bubble nonsense just keeps making everything worse and that's going to continue until the government boys finally stop mucking around in the economy.

[jensend]

western economies are also based on continuous growth regardless of productivity. unsustainability has been built into the model. crashes like we're about to see are therefore also part of the model. the beef i have with the video is that we're not going to avoid the end result but there are different ways to get there. bush's comments on orderly bankruptcy are relevant. it was done with airlines.

[TOM4CWB]

Fransisco,

Do you really think... when we are two minutes from hitting the 'Reset Button' on our global financial systems... the actors in charge will abort now?

This is the 'perfect' excuse to set up the new world order... regulated oil and grain prices... one currency... one interest rate... global standards that prevent volitility that kills our economies...

All run out of a giant computer in the heart of the EU... for the global good... and peace on earth!

[TOM4CWB]

P.S.

TheCWB is set up and has a running start... to manage Canada's economy!

Part of "The mother of all 'single desk's'"!!!

[classicalliberal]

I wonder why they want to repeat history, we all know how central planning has turned out.

[Fransisco]

The powers that be think that this time it will be different because they are the ones who are in charge and they are smarter than all of those who came before them. They aren't and it won't be all that different but this is what they believe.