Repo 105 Cause Of Economic Collapse?
March 13th, 2010 |
In August of 2008 most Americans felt relatively safe in their economic lives. Although rumblings had been heard in the financial community of troubles in the credit markets and credit default swaps very few people had any idea of the extent the problems penetrated into the financial system.
Over the past almost 2 years the US has stumbled along and required massive governmental intrusion and financing of our banking industry. Numerous reporters and authors have been reviewing the causes of the crisis and they have been blamed on everybody from Bernie Madoff to Dick Chaney. Today it finally appears the true culprits may be coming into view.
It now appears that a rather cryptic and unknown accounting practice may have been the real instigator behind the crisis. This practice will become well known over the next few weeks in financial circles. The practice is basically a accounting trick where current inventory, in this case securities and moved off the book as a sale around the time of reporting to investors and banking officials. these are then bought back a few days later and the debt reappears on the balance sheet after the reporting period has passed. This practice led to a false picture of the financial institutions credit worthiness.
The practice has just been brought to light and is believed to be practiced throughout the financial community. How wide spread this practice is thought to be very wide spread. This calls into question financial reports from many of the large financial institutions. Just how wide spread this practice is will become obvious over the next few weeks. Financial markets may well roil with this latest revelation, especially if the practice is shown to be widespread. Keep your ears tuned over the next few weeks as Repo 105 become a familiar phrase.
I think I may need to move into Forex, or Gold... All the best and keep an eye on your 401k next week.
Peter White is a medical professional with interest in internet marketing and finance. For more information on Repo 105 Click Here. http://repo105.com
One Response to “Repo 105 Cause Of Economic Collapse?”
By Peter White on Mar 14, 2010 | Reply
Thanks for running the article. The extent of this fraud is just beginning to become apparent. Hopefully it is limited to Lehman’s, but I fear the practice was much more widespread. Wonder if the senate will include this in financial reform bill. Needs to be there to protect us all. All the best and great blog.