Here is one of the enlighting comment:

".... I investigated offshore entities for the better part of five years for the world's largest Credit Insurance firm in the world.

Here's the deal with offshore companies registration.

To open an account through the British Virgin Islands (BVI) financial services Commission, one only needs to wire 500 bucks a year to the registrar to keep a "good standing" and $1,500 to $3,000 to a lawyer called a "Registered Agent".

Under BVI law, the company reporting requirements are limited to the name of the company, year of incorporation, company number, and registered agent. Under law, the company's directors, shareholders, employees, financial statements, what they do, and where they do it are completely secret.

An entity may register and do business anywhere in the world, except where the company is registered. It is estimated by the Suisse that most of the 70 trillion in Credit Default Swaps originated from companies in the Caribbean.

A company called "ABC Offshore Ltd" can place bets on financial vehicles defaulting and get "insurance on the failure", and the only thing the desk manager knows is that when the insured party defaults, the payment gets transferred to a numbered account, which is also secret.

All of these CDS agreements are PRIVATE, and they are all priced in dollars. This is why the dollar is king right now. There is less demand for hard assets and commodities, because they are not as liquid.

The reason the dollar gained 25% in three months is because other currencies are failing, and banks are off loading their hard assets at fire sale value to get short term dollars to pay off these "default bets".

They are selling quick cause they couldn't see what was coming. The short sellers (buyers of CDS "insurance") are secret individuals. You could be a desk manager at Lehman and have an offshore entity placing bets on your "own" company".

The architects of subprime are based in the Caribbean, but you will never identify them. They sold banks the MBS/CDO (note: MBS is Mortgage Backed Security, CDO is Collateralized Debt Obligations, CDO is a combination of whole bunch of ABS. ABS is Assets Backed Security, such as mortgages, credit card debts, home equity loans) adjust in two years, because they invented the products.

Transparent investors saw the potential risk, but were attracted by high monthly yield spreads. CDS allows for 100 or more bets to be put on the full value of the default policy, far exceeding what the banks have in cash in case of such a default. The amount estimated this month is 12 trillion, which represents more money than Americans have in checking and savings (7 Trillion).

Its unfortunate that these banks also took the 7 trillion of your money and used it as collateral to take out loans in excess of 70 trillion so they could generate 73 trillion in loans....."

Here it is, this is the magic, trillions after tens of trillions of US dollar generated from thin air by hedge funds, derivatives, ABS, MBS, CMBS, CMO, CDO, CBO, CLO, and other subset of structured products in the size of 73 trillion dollars.

This person is one of the upper managers working for AIG? Seems to know all the inside story and figures?

A bubble created by Wall Street in Carribbean, in the size of more than 10 times the total sum of all savings accounts and all checking accounts combined in America? A bubble more than 5 times the GDP of US? Because US is the reserve currency, so Fed can print money like no tomorrow and the whole world is paying it?

Now, chickens come home to roost? There were Savings and loan bubble in the seventies, the junk bonds bubble in the eighties, the DOT COM bubble 10 years ago, Enron/MCI/AC/… bubble 5 years ago. Seems like, Wall Street creates a bigger bubble to cover up the previous bubble?

This morning, I heard on the news that Congress is bailing out the big 3 car companies, because one in ten jobs are automobile related, According to Forbes: Labor cost per hour, wages and benefits for hourly workers, 2006.

Ford: $70.51 ($141,020 per year)

GM: $73.26 ($146,520 per year)

Chrysler: $75.86 ($151,720 per year)

Taxpayers with minimum wage of $6.55, (just increase on July 24, 2008 from $5.85) are bailing out someone who makes $151,720 per year? Building cars no one wants to buy? High mileage gas guzzler waiting for next oil crisis? Car companies already received 25 billions loan gurantee, now they want additional 25 billion dollar bailout(gifts) from taxpayers? Obama supports it, Bush supports it, the congress supports it. Where are all these Nobel prize economists? All these smart people in US?

There are too many lawyers,accountants, salesperson, and bullshxt artists