SHADOW BANKING NON REGULATED FUNDERS GLOBAL
The Shadow unregulated banking sector has once again reached levels not seen since 2006 and 2007 in the 80 trillion dollar mortgage industry world wide. Once again over 50% of 80 trillion is now skewed outside regulatory banking. Big banks have moved out of this market which suppresses economic activity, world wide, as enormous fines for their crimes against us all for profits rise to the after markets from the crash.
The SHADOW banking sector is focused on jumbo loans above what gov financing provides. This is troublesome because, sub prime home prices are so low in the main housing market that when they fall in value, their recovery time is short and demand is high.
When the new focus of 40 to 50 TRILLION OF NEW MORTGAGES on much higher priced homes, falls, the value will not return rapidly, nor will the banks be able to absorb those loses.
This unregulated global market sells the mortgages in pools as in the movie the BIG SHORT which all my readers should rent on NETFLICKs. Then these pools sell the mortgages in those pools into larger pools. Then those pools sell into SUPER DUPER POOLS are rated as NO RISK. Like musical chairs the mortgage exposure remains in the last SUPER DUPER POOL holding the mortgage. When the Pools DEFAULT the system liquidity stops, and through ripple counter party contracts the entire system implodes.
So to see the UNREGULATED SHADOW BANKING sector the IMF the WORLD BANK has been warning world leaders about for two years, move past 50% of the 80 TRILLION DOLLAR GLOBAL MORTGAGE MARKET SPACE at larger numbers than 2007 – alarm bells rise on the SUPER BUBBLE IN REAL ESTATE.
I can remember when George Bush turned to his Secretary of Treasury and said HOW COULD THIS HAPPEN – it rises that congress is largely attorney’s and administration is largely attorney’s and staff with limited overall financial expertise. Economists are trained classically in markets of the past when markets of today and tomorrow are digital and represent NEW ECONOMICS the world has never seen before.
The speed and size of the DIGITAL TRADES has taken over the market. The regulations have failed to keep up.
WE have ARGUED for the largest regulatory RE-THINK in modern history. So far no one is listening. They don’t understand the MARKET IS OUT OF CONTROL and is at the level of the SHADOW BANKS a giant legal PONZI scheme in which like musical chairs the world system gets wiped out – when the music stops. Which all this can not end well.
We will keep you informed. The risk due to BAD DEBT rising in the world markets we have so well documented with DATA – hard data – on this blog site if you read back this year – can not be ignored taken collectively. It is historic.
Only the SUPER BUBBLE is now all asset classes – all of them.
So the SUPER CRASH will be systemic to the entire system.
We have told our readers what to to do. Registering into CEO SPACE ( as there is safety in a larger cooperative trading circle ) is the cornerstone of protecting your lifestyle DEC 13th. Study trading a year-end tax dollar for an accelerator for your venture and business with a guarantee. I would just do it.
Time is running out. Today the odds of a Donald Trump election upset are higher than they have been and you will know in weeks – and if Donald Trump wins – everything changes. The markets don’t like change. Even if long term it might be better.
So factor that risk into your thinking which is WHY the markets went down considerably Friday on news new criminal investigations by the Federal Gov. ( never taken lightly ) were formerly publicly opened against HILLARY CLINTON ( again ). Not good.
So as I’ve said – it’s a mess right now. All to pass one way or the other Nov 8th. We are in the stretch. Information is everything. Knowledge IS power to act.
We’ll keep you ahead and thanks for sharing this blog we appreciate that and you all.
Berny Dohrmann – Chairman CEO SPACE INTERNATIONAL – google us