frankpennington.com

By Nassim Nicholas Taleb

Published: April 7 2009 20:02 | Last updated: April 7 2009 20:02

1. What is fragile should break early while it is still small. Nothing should ever become too big to fail. Evolution in economic life helps those with the maximum amount of hidden risks – and hence the most fragile – become the biggest.

2. No socialisation of losses and privatisation of gains. Whatever may need to be bailed out should be nationalised; whatever does not need a bail-out should be free, small and risk-bearing. We have managed to combine the worst of capitalism and socialism. In France in the 1980s, the socialists took over the banks. In the US in the 2000s, the banks took over the government. This is surreal.

http://www.voxeu.org/index.php?q=node/3421

http://www.pbs.org/moyers/journal/04032009/watch.html

http://us1.institutionalriskanalytics.com/pub/IRAstory.asp?tag=351

The key point is that neither the public, the Fed nor the Treasury seem to understand is that the CDS contracts written by AIG with these various non-insurers around the world were shams - with no correlation between "fees" paid and the risk assumed. These were not valid contracts as Fed Chairman Ben Bernanke, Treasury Secretary Geithner and Economic policy guru Larry Summers claim, but rather acts of criminal fraud meant to manipulate the capital positions and earnings of financial companies around the world.

http://online.wsj.com/public/resources/media/Financial_Strategy-20081119...

3x ETFs (Gambler's dream)

BGU – Large Cap Bull 3X Shares – Russell 1000
BGZ – Large Cap Bear 3X Shares – Russell 1000
TNA – Small Cap Bull 3X Shares – Russell 2000
TZA – Small Cap Bear 3X Shares – Russell 2000
ERX – Energy Bull 3X Shares – Russell 1000 Energy
ERY - Energy Bear 3X Shares – Russell 1000 Energy
FAS – Financial Bull 3X Shares – Russell 1000 Financial Services
FAZ – Financial Bear 3X Shares – Russell 1000 Financial Services

http://www.professorfekete.com/articles%5CAEFRevisionistTheoryOfDepressi...

Imminent Bond Crash:
http://news.goldseek.com/GoldSeek/1223911533.php

The Conjure Discussion Paper:
http://www.mediafire.com/?zwqk3i2mt2y

Source:
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