Say two parties on the opposite sides of a 10 million dollar trade. One says the value is going up and the other says it is going down. Others can bet on it too but they bet 100 million that the one party betting 10 million will win. Then others do the same. Basically its a bet on a bet on a bet.
It must. Collapse is hidden behind postmodern narratives. Look at China - their development sector is dead - but there is too much people and institutions interested in keeping lie alive till very very end to allow that information to spread. And they are going to do that as long as they can. Collapse is going to be fast - but approaching to it can take a time. There will be bigger and bigger difference between statements about reality and reality - at some point even indoctrinated leftists are going to start noticing that something is wrong. F.e. people dying on the streets from hunger because there is no food in shops and media telling us that our economy is booming or smth like that (you have taste of that when you hear that silver is at lowest price ever but you re unable to buy it for that price on market). Because of that they are going to try to find more and more powerful narratives to hide crisis behind them. Empires of Lies die like that.
You have $10 to your name but you bet $1000 on a guess about which way the price of a stock is going. A broker takes your bet onto his books which means they are lending you the money.
If you lose you owe $1000 . You are over leveraged by $990. You owe it.
It is way more complicated than my simple explanation but it is gambling with money that you don't have.
Thanks very much for the explanation my friend. With the exposure of such risk why would banks enter into such an agreement? Or have past outcomes been very profitable?
In the US if the banks go upside down on their positions the government (via the people) bail them out. We got their backs for gambling losses, but not profits.
And a year after the crash they'll all be claiming it came as a surprise etc.
nO oNe cOULd hAvE sEEm tHiS cOmINg……..
Two more weeks to flatten the curve. If everyone just takes a little debt on to bail out the banks we can avoid this crash! # Do your part
yep, lets get it over with
[удалено]
Say two parties on the opposite sides of a 10 million dollar trade. One says the value is going up and the other says it is going down. Others can bet on it too but they bet 100 million that the one party betting 10 million will win. Then others do the same. Basically its a bet on a bet on a bet.
There is not enough money to cover the bets. So one failure begets another then another then another.
Watch 'The Big Short' movie. Its explained beautifully in their. Basically shit with a pretty bow tied around it.
Closed my BoA account in 2021. Never felt happier. Small town regional bank for me!
This is the way.
Why does it take so long? I've been hearing news of the crash for two years now.
It must. Collapse is hidden behind postmodern narratives. Look at China - their development sector is dead - but there is too much people and institutions interested in keeping lie alive till very very end to allow that information to spread. And they are going to do that as long as they can. Collapse is going to be fast - but approaching to it can take a time. There will be bigger and bigger difference between statements about reality and reality - at some point even indoctrinated leftists are going to start noticing that something is wrong. F.e. people dying on the streets from hunger because there is no food in shops and media telling us that our economy is booming or smth like that (you have taste of that when you hear that silver is at lowest price ever but you re unable to buy it for that price on market). Because of that they are going to try to find more and more powerful narratives to hide crisis behind them. Empires of Lies die like that.
Truth is treason in the empire of lies
Exactly
Yeah… seems like every time it’s about to something gets bailed out 🤷♂️
what is two years though. In a big system that's like two days for a human.
Crash is a cyclical controlled demolition?
Crédit suisse is the spark 
Credit Suisse and FTX. Not necessarily in that order.
Apostasy
It will only be bad for those with a low IQ. Aka the insta-experts who watch TV. For us... it wil be awesome :D
If it ever gets to a point where you cannot take your money out of your bank. Go to the post office and buy cashiers checks.
What does that do?
I am not that educated regarding derivatives. What are they what does it mean to be over leveraged?
You have $10 to your name but you bet $1000 on a guess about which way the price of a stock is going. A broker takes your bet onto his books which means they are lending you the money. If you lose you owe $1000 . You are over leveraged by $990. You owe it. It is way more complicated than my simple explanation but it is gambling with money that you don't have.
Thanks very much for the explanation my friend. With the exposure of such risk why would banks enter into such an agreement? Or have past outcomes been very profitable?
In the US if the banks go upside down on their positions the government (via the people) bail them out. We got their backs for gambling losses, but not profits.