Every one could. but would they?

More likely scenario is that somebody falls over and knocks the house of cards down inadvertently.

What would happen is a vast amount of paper and electronic wealth would simply disappear. Most of that wealth is owned by the wealthy. This isn't a guess its just a function of the fact that most of the wealth of any kind is owned by the wealthy – hence being called the 'Wealthy'.

Given that they would cease to be wealthy they have every reason to exaggerate how much other people would lose. And exaggerate they do. Pensions – think of the pensions they cry, with mock concern.

Actually pensions would suffer less than they are GOING to under the current situation. But that is a whole other hive of hornets (Do hornets have hives?)

But I think you sense is pointing you in the right direction. The root problem is, we have a global currency which the banks created for themselves (debt backed securities and derivatives), which out of pure greed they promptly debased. An act of monumental stupidity whose entirely predictable consequence they have spent two years trying to avoid.

Default is going to happen but now in a more uncontrolled and violent fashion OR the world is going to be ground into debt subservience for the pleasure and profit of a single financial class.

Personally I vote for option number one.

IanG interesting. A perfect storm may unfold as early as tomorrow. A single vote in Germany tomorrow could trigger it as could a few other things all lining up in for freaky Friday if ever there was one.

http://www.thisislondon.co.uk/markets/article-23835581-a-slippery-slope-as-oil-calls-the-shots.do

What he has dug up is a scary scenario where the price we pay for commodities is unrelated to normal supply and demand. Now this can be the case for lots of reasons but for oil mucking around like this has dire
consequences.

So, the upshot of this piece of news is that there are other 'bad' things going on in the financial world that if they come together in some 'perfect storm' with the stuff you have alert us to, then we are well and truly f**ked!

I know it does seem too daft for words, but it really is true about the Italians.

It reminds me of a joke.

A bunch of Ostriches milling around in the desert waiting. On the horizon a cloud os dust appears. The ostriches become nervous as the cloud approaches.

The dust cloud is being kicked up by a magnificent specimen of an Ostrich running at full tilt.

As the cloud of dust is within a few hundred yards of the other birds they suddenly can bear it no longer and stick their heads firmly in the sand.

The lone Ostrich stops – panting – puzzled. Looks around and cries out, "Where is everyone!"

I don't think we'll be able to trace the actual bonds but we should still be able to make an informed appraisal of this week's purchases.

Thanks for all your comments.

Can it be verified? The ECB published its purchase of dodgy debt for the preceeding week, so maybe for this week also?

And the strerilization; is it still only seeking deposits?

Can the transaction be traced, so that we can state as a matter of fact that the Spanish issue has ended up at ECB?

I absolutely adored your info about the Italians' banning of the mark to market accounting rules. Of all pathetic measures to take! Is this really true?

But in any case it reminded me about your enthusiasm form a while back about Germans proposing to force write-downs of real estate values on hedge funds. Accounting cannot affect the real world – either way.