Banro Corp. fka BAA

[SilverRay]

taken from here:
[url]http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/20_We_Are_Now_On_The_Verge_Of_A_Historic_Meltdown_%26_Collapse.html
[/url][tag]KWN news[/tag]

Rising interest rates are a killer in an over-levered economy, and that’s exactly what we’ve been seeing in the United States.


This surge in interest rates may have already seriously destabilized the entire financial system, and that’s why there is this meeting taking place in the White House today. The fact is that the vast majority of derivatives in the global financial system are related to interest rates.


Now, the entire financial system may be on the precipice of some sort of catastrophic event unfolding because of what we have already seen in the bond market, and how the derivatives are so heavily intertwined. Meaning, we may be on the verge of another disastrous derivatives meltdown.


We have an unbelievable amount of interest rate derivatives in the financial system. So the winners theoretically take the profits on them, and the losers simply misprice them on their books. But as you get higher interest rates it becomes even more destabilizing.


I firmly believe the reason the President has called this meeting today is because if interest rates in the U.S. continue to rise, it could really unleash something disastrous. We are talking here about the possibility of a meltdown. It’s interesting that the President would call in that many big hitters, the head of every significant financial agency in the United States, as well as the Fed and the Comptroller of the Currency, etc -- this is a very large meeting today.