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Easily Understandable Explanation of Derivative Markets

Wetwired Time Monday, March 8th, 2010 at 9:56 am by pylorns

From here.

Heidi is the proprietor of a bar in  Detroit . She realizes that virtually all of her customers are unemployed alcoholics and, as such, can no longer afford to patronize her bar. To solve this problem, she comes up with a new marketing plan that allows her customers to drink now, but pay later.

Heidi keeps track of the drinks consumed on a ledger (thereby granting the customers loans). Word gets around about Heidi’s “drink now, pay later” marketing strategy and, as a result, increasing numbers of customers flood into Heidi’s bar. Soon she has the largest sales volume for any bar in  Detroit .

By providing her customers freedom from immediate payment demands, Heidi gets no resistance when, at regular intervals, she substantially increases her prices for wine and beer, the most consumed beverages. Consequently, Heidi’s gross sales volume increases massively.

A young and dynamic vice-president at the local bank recognizes that these customer debts constitute valuable future assets and increases Heidi’s borrowing limit. He sees no reason for any undue concern, since he has the debts of the unemployed alcoholics as collateral.

At the bank’s corporate headquarters, expert traders figure a way to make huge commissions, and transform these customer loans into DRINKBONDS, ALKIBONDS and PUKEBONDS. These securities are then bundled and traded on international security markets.

Naive investors don’t really understand that the securities being sold to them as AAA secured bonds are really the debts of unemployed alcoholics. Nevertheless, the bond prices continuously climb, and the securities soon become the hottest-selling items for some of the nation’s leading brokerage houses.

One day, even though the bond prices are still climbing, a risk manager at the original local bank decides that the time has come to demand payment on the debts incurred by the drinkers at Heidi’s bar. He so informs Heidi.
Heidi then demands payment from her alcoholic patrons, but being unemployed alcoholics they cannot pay back their drinking debts. Since Heidi cannot fulfill her loan obligations she is forced into bankruptcy. The bar closes and the eleven employees lose their jobs.

Overnight, DRINKBONDS, ALKIBONDS and PUKEBONDS drop in price by 90%. The collapsed bond asset value destroys the banks liquidity and prevents it from issuing new loans, thus freezing credit and economic activity in the community.The suppliers of Heidi’s bar had granted her generous payment extensions and had invested their firms’ pension funds in the various BOND securities. They find they are now faced with having to write off her bad debt and with losing over 90% of the presumed value of the bonds. Her wine supplier also claims bankruptcy, closing the doors on a family business that had endured for three generations, her beer supplier is taken over by a competitor, who immediately closes the local plant and lays off 150 workers.

Fortunately though, the bank, the brokerage houses and their respective executives are saved and bailed out by a multi-billion dollar no-strings attached cash infusion from their cronies in Government. The funds required for this bailout are obtained by new taxes levied on employed, middle-class, non-drinkers who have never been in Heidi’s bar.

Now do you understand?




Last Scion, Out.

Wetwired Time Friday, February 12th, 2010 at 4:14 am by Finley

For 61 of the last 63 years, there has been a Kennedy in Congress serving as Representative for one fo the 50 states. Since 1962, there has ALWAYS been a Kennedy in the House of Representatives.

After this year, that streak will end.

Patrick Kennedy, the son of Teddy, will not seek reelection. For a quarter of this country’s history, the Kennedy family has helped to influence the political discourse and direction of the nation. Whether you like them or not, you cannot deny their influence on the nation.

To have the Kennedy clan’s political participation end like it has the last 15 years or so has been somewhat sad. The son of the president dies in a freak plan accident, the last of the most influential generation dies of a brain tumor, and a simple announcement ends an era. I don’t agree with the Kennedy family’s politics on almost any topics, but I respect the hell out of what they managed to do. Not only that, but as a red-blooded straight Amurrrhican man I have to look up to a guy who pulled in the amount and quality of ladies that ol’ Jack got. I mean, come on- the dude nailed Marilyn Monroe.

So this one time, you get a toast from me.

Out.




Y’know, I Bet This IS How An Apology From Rahm Would Go.

Wetwired Time Monday, February 8th, 2010 at 7:03 am by Finley

Should you have to ask, just look up Rahm Emanuel’s recent controversy with Democrats.

Submitted Without Further Comment:

Fucking awesome.

Out.




Debra Medina wins not one but two Debates against Hutchinson and Perry

Wetwired Time Monday, February 1st, 2010 at 8:33 pm by pylorns

I’m not sure how I feel about repealing the property tax per say but her pro-2nd amendment stance and her stance on the strict constitutionalism makes me like her.  The thing is, she’s a nurse, she’s not a career politician, and she knows her stuff.

Seriously, ouch – she’s hammering Perry.




Massachusetts Miracle

Wetwired Time Sunday, January 17th, 2010 at 9:44 am by pylorns

Liberty

They still think its the Kennedy’s Seat.  It’s the peoples seat!

I want to ask for your personal help in the Special Election for my father’s seat taking place in just 4 days.

The latest polls show Democrat Martha Coakley in the lead, but her Republican opponent is right on her heels in a race that represents the critical 60th vote for health insurance reform and the rest of President Obama’s agenda.

Please help us by making calls at Democratic National Headquarters in DC between now and Election Day on Tuesday. Together we can make thousands of calls that will put this great candidate over the top.

Please sign up to volunteer in DC.

Thank you so much. Your efforts will make a big difference in this race!

Sincerely,

Rep. Patrick Kennedy

Paid for by the Democratic Congressional Campaign Committee.
430 South Capitol Street, S.E. Washington, D.C. 20003
(202) 863-1500 – www.dccc.org
Not authorized by any candidate or candidate’s committee.

Contributions or gifts to the Democratic Congressional Campaign Committee are not tax deductible.

Then what about this? Bill Clinton says that his stumping for Coakley is his way of helping the Haitians? Seriously? Let’s tie a tragedy to a senate candidate..yeah that’ll work you tool.




It’s the Peoples Seat

Wetwired Time Thursday, January 14th, 2010 at 1:21 pm by pylorns

Couldn’t have said it better myself:

And now Obama is going to visit Massachusetts to campaign for the idiot  Martha Coakley who makes blatant statements like “Terrorists are not in Afghanistan”.  She also supports Cap and Trade.

The progressives and unions are pulling out all the stops this weekend and last couple days to get an idot ellected who will vote exactly the way the president wants her to vote.  They don’t want to loose that 60 vote majority.  If you can, donate to Scott Brown.




Front Page of Drudge Report: COUNT THE LIES: OBAMA VOWED 8 X TO TELEVISE HEALTHCARE

Wetwired Time Wednesday, January 6th, 2010 at 11:21 am by pylorns

Obama and C-SPAN on Drudge

That’s right he said 8x he wanted the health care debate to be on C-Span for everyone to see. And what are they doing? They are doing the exact opposite. Not only that Nancy Pelosi acted suprised about it.  Check her reaction out here.

A reporter reminded the San Francisco Democrat that in 2008, then-candidate Obama opined that all such negotiations be open to C-SPAN cameras.

There are a number of things he was for on the campaign trail,” quipped Pelosi, who has no intention of making the deliberations public.

Sad.  That she thinks we’re all that stupid.




White House Christmas Tree has Mao Ornament

Wetwired Time Wednesday, December 23rd, 2009 at 6:41 pm by pylorns

Why would you put an ornament on the White House Christmas Holiday (forgot we have to be politically correct too..)Tree that featured the communist leader Mao Zedung and a drag queen?

http://www.foxnews.com/politics/2009/12/23/white-house-christmas-decor-featuring-mao-zedong-comes/

I’m disgusted.




December 7th, 1941

Wetwired Time Monday, December 7th, 2009 at 1:20 pm by pylorns


December 7, 1941.




Percentage of Presidential Cabinets that have real job experience

Wetwired Time Tuesday, December 1st, 2009 at 9:19 am by pylorns

cabinet_appointees_jobs

That’s right President Obama has the lowest number EVER of Cabinet Appointments that have actually worked an honest to God job.




What the hell is wrong with our leadership?

Wetwired Time Wednesday, November 25th, 2009 at 9:22 am by pylorns

From Fox – not reported elsewhere.  What is wrong with the leadership when they are trying to bring civil charges against people at WAR?

Navy SEALs have secretly captured one of the most wanted terrorists in Iraq — the alleged mastermind of the murder and mutilation of four Blackwater USA security guards in Fallujah in 2004. And three of the SEALs who captured him are now facing criminal charges, sources told FoxNews.com.

The three, all members of the Navy’s elite commando unit, have refused non-judicial punishment — called an admiral’s mast — and have requested a trial by court-martial.

Ahmed Hashim Abed, whom the military code-named “Objective Amber,” told investigators he was punched by his captors — and he had the bloody lip to prove it.

Now, instead of being lauded for bringing to justice a high-value target, three of the SEAL commandos, all enlisted, face assault charges and have retained lawyers.

Matthew McCabe, a Special Operations Petty Officer Second Class (SO-2), is facing three charges: dereliction of performance of duty for willfully failing to safeguard a detainee, making a false official statement, and assault.

Petty Officer Jonathan Keefe, SO-2, is facing charges of dereliction of performance of duty and making a false official statement.

Petty Officer Julio Huertas, SO-1, faces those same charges and an additional charge of impediment of an investigation.

The military is sensitive to charges of detainee abuse highlighted in the Abu Ghraib prison scandal. The Navy charged four SEALs with abuse in 2004 in connection with detainee treatment.

The three SEALs will be arraigned separately on Dec. 7. Another three SEALs — two officers and an enlisted sailor — have been identified by investigators as witnesses but have not been charged.

FoxNews.com obtained the official handwritten statement from one of the three witnesses given on Sept. 3, hours after Abed was captured and still being held at the SEAL base at Camp Baharia. He was later taken to a cell in the U.S.-operated Green Zone in Baghdad.

The SEAL told investigators he had showered after the mission, gone to the kitchen and then decided to look in on the detainee.

“I gave the detainee a glance over and then left,” the SEAL wrote. “I did not notice anything wrong with the detainee and he appeared in good health.”

Lt. Col. Holly Silkman, spokeswoman for the special operations component of U.S. Central Command, confirmed Tuesday to FoxNews.com that three SEALs have been charged in connection with the capture of a detainee. She said their court martial is scheduled for January.

United States Central Command declined to discuss the detainee, but a legal source told FoxNews.com that the detainee was turned over to Iraqi authorities, to whom he made the abuse complaints. He was then returned to American custody. The SEAL leader reported the charge up the chain of command, and an investigation ensued.

The source said intelligence briefings provided to the SEALs stated that “Objective Amber” planned the 2004 Fallujah ambush, and “they had been tracking this guy for some time.”

The Fallujah atrocity came to symbolize the brutality of the enemy in Iraq and the degree to which a homegrown insurgency was extending its grip over Iraq.

The four Blackwater agents were transporting supplies for a catering company when they were ambushed and killed by gunfire and grenades. Insurgents burned the bodies and dragged them through the city. They hanged two of the bodies on a bridge over the Euphrates River for the world press to photograph.

Intelligence sources identified Abed as the ringleader, but he had evaded capture until September.

Yeah I would have punched him in the face and then shot him in a limb!




Tax and Spend Democrats

Wetwired Time Monday, November 23rd, 2009 at 11:08 am by pylorns

This time they want to tax you to pay for more troops. 1% for bottom earners and 5% extra for the top earners. Keep in mind that they don’t take away taxes – so they are in effect upping the income tax.
Two top Democrats say they want to impose a new tax on the wealthy to finance any increase in U.S. troops for the Afghanistan war.

Rep. David Obey, D-Wis., chairman of the purse string-controlling House Appropriations Committee, is calling the idea a “war surtax.” He said that just as the federal government is expected to pay for its proposed intervention in the health care sector with new taxes, any escalated involvement in Afghanistan should come with a payment plan.

“If we have to pay for the health care bill, we should pay for the war as well … by having a war surtax,” Obey told ABC News in an interview that aired Monday. “The problem in this country with this issue is that the only people that has to sacrifice are military families and they’ve had to go to the well again and again and again and again, and everybody else is blithely unaffected by the war.”

Sen. Carl Levin, chairman of the Senate Armed Services Committee, is making a similar demand.

President Obama plans to hold his ninth meeting Monday evening with his national security team to discuss options for overhauling the strategy in Afghanistan. The president has been considering requests for tens of thousands more U.S. troops from his top commander, Gen. Stanley McChrystal, for nearly three months. He is not expected to announce his new strategy before Thanksgiving.

But any request would likely come with a hefty price tag. One option presented by McChrystal would bring 40,000 more troops into Afghanistan — a proposal estimated to cost about $40 billion, according to the Office of Management and Budget.

Obey said if an increase like that is approved without any payment mechanism, then other domestic initiatives would be wiped out.

“On the merits I think it’s a mistake to deepen our involvement. But if we are going to do that, then at least we ought to pay for it. Because if we don’t, if we don’t pay for it, then the cost of the Afghan war will wipe out every other initiative that we have to rebuild our economy,” he said. “Ain’t going to be no money for nothing if we pour it all into Afghanistan.”

Obey’s proposal would be a “graduated tax” on income. It reportedly would start at 1 percent for low-income earners and rise to 5 percent for high-income earners. He’s calling it a surtax because it would essentially be a tax on income that is already subject to federal income tax.

Yep, leave it to them to find an excuse to try to tax us again.




Vote for healthcare debate in the senate passes, two senators tout their prizes

Wetwired Time Sunday, November 22nd, 2009 at 9:48 am by pylorns

That’s right you can truly see how deals are made when two senators from Louisiana and Arkansas held out until they got sweet deals from the other democrats written into the bill.  $300 Million dollars of extra money to go to fraud in abuse in Louisiana for Landreiu and some untold backroom deal that Blanche Lincoln finagled.

You now can really see how they get this stuff passed – its all about what they can squeeze out for themselves – not about what’s best for the country.




Healthcare bill today?

Wetwired Time Saturday, November 21st, 2009 at 10:44 am by pylorns

The two holdouts are Sens. Blanche Lincoln of Arkansas and Mary Landrieu of Louisiana.  These two are the ones that can decide it all.  Landrieu has announced she isn’t running again so she has nothing to loose in screwing over her own state and every state.  This healthcare bill is not good people.  You’ll be taxed immediately.  See this.




News Round-up for Thursday

Wetwired Time Thursday, November 12th, 2009 at 9:32 am by pylorns

There is so much news out there that I’d like to bring to your attention today.

1. Obama goes on with his indecision on the war to do nothing and hope it goes away. By telling commanders that none of the options presented to him work.

2. Lou Dobbs (one of the few independent and non-liberal voices at CNN) is leaving CNN to pursue other options.

3. Remember when they said they were not going to raise taxes on middle class? Yeah scratch that, they were only kidding.

4. Jobless claims lower than expected.  That’s the best spin they can do that Americans are still loosing jobs and unemployment is still growing even during the Christmas hiring season.

5. “Saved” 650,000 jobs.  647,500 jobs. Sprint to can 2500 employees because of low subscriber rates.  Here’s a nifty idea – don’t be asshats to your customers.  You could also see about allowing jail broken iphones on your systems (but that might take a technology shift).  But people with AT&T are jumping at the chance to leave the expensive contracts.

6. In happier, trying to get you to spend money news – Target is announcing an insane black friday sale with 32″ HDTV for 246 bucks and $3 toasters. Really it’s just a toaster that you can burn your dollars for heat since the government is printing them enough to be kindle for fire.

7. And talking about currency.  Apparently the world is running out of gold.  Expect the price of gold to continue to climb.

8. “Saved” 647,500 jobs.  647,420 jobs. Al Gore’s Current Media company is cutting 80 jobs. See even global warming couldn’t save ole’ Al.

9. Atlas Shrugged to come to the big screen? Who is John Galt? But seriously Angelina Jolie and Brad Pitt are the ones behind the picture? Wow.

10. And lastly Obama hates the jews.  Ok maybe not, but he’s standing more with anti-Israel than he is pro-Israel when it comes to the west-bank settlements.





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