Board-Ansicht
Mix-Ansicht- Dank Refco zittern jetzt sogar einige 'Heuschrecker' - Emerald, 15.10.2005, 14:55
- Re: Dank Refco zittern jetzt sogar einige 'Heuschrecker' - Emerald, 15.10.2005, 15:05
Re: Dank Refco zittern jetzt sogar einige 'Heuschrecker'
-->Thursday, October 13, 2005, 5:56:00 PM EST
Refco Sends Tremor Through Financial World
Author: Jim Sinclair
Refco’s position as the largest independent derivative dealer with
billions of dollars in customers’ money, declared a moratorium on
withdrawing assets or funds today. That’s analogous to a run on the bank
with your once friendly banker slamming the front door in your face.
This is a very serious situation, not so much because of the run but
rather because the missing money has been replaced. What makes this
aspect of the situation so serious - and why Refco must be rescued - is
because it is the principle of many over-the-counter, unregulated,
unfunded, unlisted and non-Clearing House guaranteed derivatives. If
Refco folds up its tent, then the financial world folds. You can take
that to a real bank.
Every time you rescue a financial entity, you pour more fuel on the fire
that will ultimately consume the dollar. We are so battered by economic
misconduct and flagrant abuses in the business world these days that
there are few if any rescue options for what is approaching in the
financial world.
Even with “stabilization” activities in world dollar markets today, the
US dollar did not make the desired technical breakout but in fact closed
on its low - portending perhaps what’s in store for tomorrow.
Larceny 102 (Of course Not Related to Today's Drama)
In Larceny 101 I have already discussed:
How you would start an OTC derivative market for widgets or electricity
futures.
How you create false profits in Widgets Inc.
Then using those false earnings, how you attract major Wall Street
brokers to issue equity and debt to bring in billions to your company.
Again utilizing the miracle of OTC derivatives, you back the majority of
that money to 2000 straw partnerships of rented names, then to Pakistan
and Middle East accounts controlled by the perpetrators.
When the auditor catches on, you incinerate all your OTC derivative
records.
The public company then declares bankruptcy.
Larceny 102
Larceny 102 is a lesson in how to extract funds from a controlled fund
into another account and then hide the act for years until somebody drops
a dime on the Fed because they do not like you. This method is known as
“Rolling Forward” by the means of"Switch Trading."
Because you can unethically write the OTC derivative at any price you
want (since there are no regulations) it is easy to construct a balanced
trade both long and short of the same item as an offsetting loss and gain
maturing in the present year and a future year constructed at the exact
same time. The more exotic the OTC derivatives are, the more difficult if
not impossible it is for an auditor to put it all together.
Step #1: The trade is initiated both on the buy and the sell by the same
source at the same moment.
Step #2: When you put in a transaction, the result is a loss into the
account of the captured hedge fund and a profit into your own
(camouflaged) account.
Step #3: Since you have established the profit in your account with the
offsetting loss in the captured hedge fund account, you could now extract
say $500 million from the fund and direct it to yourself. If the fund was
doing quite well, you might simply give yourself a bonus of the fund’s
profit. However, let’s assume the fund activity, profit or loss, is no
factor. You now have a $500 million profit in your account and a loss for
the fund of the same amount.
Step #4: You now set up another trade but for the fund itself. You
arrange this by writing the OTC derivative, offsetting long and short so
that you create a simultaneous $500 million profit in the fund account,
say for 2003, and the loss side matures in 2004. You do the same thing
again for 2005 and 2006. This is how you “Forward Roll” the loss in the
fund, breaking it even on a continuing basis maybe forever or until you
tick someone off who knows what you're doing.
Clearly, you don’t just do this in one transaction but perhaps for 10,000
transactions, with some winning and some losing, but the balance
accomplishing what you want to do. The end result of these shenanigans is
to take $500 million out of one pot and put it into your own pot, hiding
the loss forever.
The more exotic you construct the derivative, the less chance there is
that anyone can detect the evil deed.
Step #5: This cannot be accomplished by one person but requires others to
assist in the construction. Step five is when you make someone in the
transaction chain very angry. That person then trades immunity in
exchange for blowing the whistle on you.
Step #6: You hire the best attorneys on the planet to get you out of
trouble, having stolen enough to afford them.
Step #6: You now have a religious awakening, praying reverently that
other similar transactions remain unnoticed.
Tremor = Erdbeben / Erzittern
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