This is some pretty serious breakthrough material. If you don’t get it the first time, go through it again.
It explains a lot.
It explains why UK banks seem to always be deeply involved in the biggest scams of the day: Lehman Brothers, AIG, Madoff, MF Global.
It also explains why the financial news media is always so infuriatingly vague about the causes of these travesties.
They don’t understand because they were not supposed to understand and neither were you – until now.
Biggest players in off balance sheet re-hypothecation today: JP Morgan and Goldman Sachs
Bottom line: They’re trying to paper over the Titanic. You can guess how well that will work. Best not to own any of the paper.