PPRuNe Forums - View Single Post - Globalisation debt & banking
View Single Post
Old 14th Nov 2011, 01:33
  #212 (permalink)  
breakfastburrito
 
Join Date: Apr 2008
Location: On a long enough timeline the survival rate for everyone is zero
Posts: 731
Likes: 0
Received 0 Likes on 0 Posts
Behold the EFSF structured finance vehicle. Money as a "Structured Finance Product".


EFSF the Magnificent



If you can understand this chart, then you probably have nothing to fear from the system. If on the other hand, like me you struggle, then there is much to be wring your hand about.

If you look carefully enough and have paid attention, then you would understand that this looks exactly like a Collateralized debt obligation (CDO) - Right down to the "tranching" or tiering of risk through an SPV - Special Purpose Vehicle. Yet, this is what our "money system" has become. If knowledge is power, and you can't understand the complexity of something like this, its highly likely you are going to end up on the wrong end of the deal.
breakfastburrito is offline