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How do you know when you are about to be run down by a train? Well, typically you see it coming. What about when Credit Default Swaps (CDS) are about to blow up and you see the financial world flying off a cliff; how does one see that coming? Well, you can only see that after you have fallen and are tumbling toward planet earth, picking up speed as you fall!!
This is exactly the point that our financial system has reached. The Hypo bank in Austria was recently declared to be a zombie bank. The government of Austria had previously bailed out (read: taxpayers' money), Hypo bank, but the bank management thought they could beat the bookie and then pay off their debt if they could get one roll of the dice to fall in their favor. The dice had other plans and the gamble has not worked in Hypo’s favor. The problem with Hypo is they have all these government bonds on their books. The bonds are tied to the CDS and now we - the world, that is - are waiting to see if we are heading over the cliff or if the bankster mafia members are going to be able to work their magic and make the CDS go away. The only way the banksters were able to make the previous CDS crisis go away was to sacrifice Lehman Brothers and steal trillions of dollars from the American taxpayer. We will never be able to pay this debt. Ever. Debt jubilee, anyone?
