Will our government get its act together and do the right thing? Or will they continue to mess around and devastate our country?
Now for the last year we have been told that:
- You can’t trigger the CDS, it will cause a systemic, chain-reaction style nuclear meltdown.
- These firms are so broke that there is no value left in them.
Both are now known to be false.
This gives us hope – and a path out of the darkness.
[. . .]
The short version of The Genesis Plan is:
- Everyone must expose their balance sheet; all Level 2 and 3 assets must be declared and all models disclosed in full immediately and every quarter hereafter.
- The CDS monster must be caged by forcing it onto an exchange where O/I and margin supervision can be maintained. This is already in process and must be completed.
- Leverage must be returned to no more than 12:1 across the system – no exceptions.
The last point is obvious – every firm that has detonated has had leverage well beyond 12:1. None that have had less leverage have blown up. Game, set, match.