GamestopSwapDD: part 420.4 - Burry, 2008, Credit Default Swaps.
Hello world
let's continue. this is a continuation of the post found here:
https://www.reddit.com/r/Superstonk/comments/1i5a3qy/gamestopswapdd_part_4203_etfs_with_gme_etfs_of/
It occurred to me, after being able to archive the credit swaps using GameCock, that i didn't fully know who to search for. So i searched for EVERYONE.
this is going to be the post you don't like anons. -_-. i dont like making it.
i mean the next meme playfully, so lets go :)
first and foremost. Everything you've been taught is a lie. nothing is what it seems, and it would appear a great many of us are stuck in the middle of something very vast and important. don't get offended. when i came to learn all of this it simply made me scared at first. hopefully, by the end of this, we can replace that feeling with real hope. its my only intention.
something great is to be said about the movies margin call, and the big short. now hopefully, in terms of DD's you've read the everything short and the house of cards. these four things tie together in a direct manner.
Burry explained, in short, that the mortgages were bad, but not just that, the more alarming part is they were backed by these bad loans, and the loans were the bigger concern because they were dogshit presented to unqualified dogshit seekers. now most of us know, as we were alive, the repercussions of those events, and how many ripples were felt in the long run of things.
but what If i showed you in one picture, that a credit default swap holds up those instruments, and that burry's bet didn't pop like expected? what if i can show you its on the table until 2034, as shown in the following picture:
long beach mortgage/ merrill lynch 2005
on the left, you will see dates. those are when it was modified. but, the 2nd row + 3rd row, creation years. they're from 2008, expiry 2034. it never ACTUALLY defaulted. =/
now, for the uninitated, this particular mortgage company was one of the main ones giving out mortgages, and the mortgages AND loans were dog shit. this was a mortgage banking venture from washington mutual, and well, wamu too needed a nice save at one point...
something to note: when ubs fails, then duetschebank will be next. its the last manager for the long beach mortgage /burry bet.
as for long beach mortgages positions, well, it would appear that JPM chose to purchase these directly around the time of default, as shown in this filing here > https://www.sec.gov/Archives/edgar/data/1119605/000092963817000687/a70991_abs15g.htm
it states " 1 Long Beach Securities Corp., as Securitizer, is filing this Form ABS-15G in respect of all mortgage-backed securities representing interests in pools of residential mortgage loans for which it acted as depositor and which are outstanding during the reporting period. On September 25, 2008, JPMorgan Chase Bank, National Association (“JPMCB”) acquired the banking operations of Washington Mutual Bank from the Federal Deposit Insurance Corporation (“FDIC”). It is JPMCB’s position that certain of the repurchase obligations of Washington Mutual Bank remain with the FDIC receivership. Assets are reported herein in accordance with Rule 15Ga-1 regardless of the validity of the demand or defenses thereto, and nothing in this report shall constitute, or be deemed, a waiver of any rights, defenses, powers or privileges of any party relating to these assets."
and also we can see the value of these long beach mortgage instruments here, alive in a JPM filing : https://www.sec.gov/Archives/edgar/data/1119605/000092963817000687/exhibit99-1.htm
I even went the extra mile and fed this document to perplexity to run the numbers for. their response was slightly chilling for me:
it really is a funny timeline. turns out, September 25, 2008, JPMorgan Chase Bank purchased the banking operations from washington mutual.
did so 2 days before the market crash. hows that for insider info lol.
long beach is wamu is finkle is einhorn...
fun fact. burry saw this ABS LITERALLY. its his fucking bet.
Spy chart for the time frame:
my first thoughts were this: when the data i linked you above comes due, as perplexity states in the pic, this will topple the treasury underwriters JPM, who have been treasury underwriters since 1893, 20y before federal reserve was concocted.
then i realized this : o wait. JPM is working the CBDC tho rite? yeah.
so imho, 2008 was a tool to usher in CBDC after financial collapse was engineered.
link for pic above: https://www.ledgerinsights.com/jp-morgan-regulated-liability-network-digital-currency/
i provided the link to show JPM's placement in the new cbdc system.
please, also remember JPM is on the board of SETL, the CBDC settlement system as well.
well. so what happened to the loan issuers then, ABST? is this an incomplete thesis? did you actually try to learn before talking to us? yes anon. sadly i did.
lets look up the credit default swaps on merrill lynch. oh wait, they're listed above with long beach mortgage! well then. maybe wee should look at the wiki for the crisis to get a list of entitites, which might trend with archegos counterparties, considering thats all of them.
https://en.wikipedia.org/wiki/2007%E2%80%932008_financial_crisis is source for that picture.
k, merrill, check. oh want more merrill? k. thats easy. theres a bunch.
2004 + 2005 trusts. nice merrill. still livin huh? alive til '35.
these are credit default swaps on asset backed securites made of mortgage backed securities. CDS ABS MBS. call these guys 3chains..
why did i pick merrill? its burry related. much depth on them. too =/
you see, at one point i had scraped the entire edgar system for citigruop filintgs, trying to find all the baskets involving GME over time (theres too many on the index's and etfs of index's for me to want to finish that)
oh sure, ill go into that before going on. feels important, even though the problem is every is still truly asleep. they dont see clearly at all. only one piece of the puzzle.. i knew i would find these in this merrill search. i simply fucking knew it. it's because of how their trusts were setup..
they had a default waiver in the structure of them, lol.
way to go lehman / merrill. goobers.
now to keep this on track with the entities involved.. ihonestly did one thing before the other.
i went through each of the entities invovled in burrys bet, then i did the archegos related things, and i followed after by searching credit swaps on the insurance companies, who i thought were credit injections into these various total return swap setups.
as for lehman? >
there are indeed credit default swaps issued on lehman in the year of 2012, expiry of 2035, but issued upon their 2005 trusts. 270 credit default swaps total.
credit suisse? >
there are only two listed ABS MBS credit swaps, single name on credit suisse's records. they are tied to a CREDIT SUISSE MORTGAGE CAPITAL CERTIFICATES;2013-5R
they were rolled out after about 7 years, presumably, as execution is 12-30-2022. expiry of 1-30-2023.
abs > mbs is important, because it means the MBS were never closed, but needed credfit injections to probably afford the heavy collateral required to keep these swaps alive. i bet those "premiums" muts b heavy.
as for wamu itself, they are a rabbit hole like a mfer. they are the successor to Wachovia..
JPM themselves bought long beach mortgage FROM washington mutual, but theres layers here.
JPM also merged with Bear stearns to create ML LLC..
want bear stears credit swap records?
they actually backed the CDO itself with a CDS on that shit. lol.
then if we go into the other section of previous 15 year old news, ML II LLC was created from AIG for Residential MBS and Insurance subsidiaries :
so if one was curious enough then, this leaves JPM and WAMU out of the discussed entities, do they have long dated deep rooted credit default swaps?
WAMU >
JPM> a wide variety slew of CDS/ABS-MBS on their MBS trusts from sub 2008. one CDS on CDO for a 2020 trust as well.
also, heres AIG: credit default swaps. assuming they were ACTUALLY bailed tf out, then the execution dates are previous maturities, which were re executed as roll outs. I assume, since the structure of these , its subsidized. When it comes to collateral for these swaps, if they are indeed subsidized, the collateral could theoretically involve U.S. Treasuries or other government securities, as these are often considered very safe assets. However, this would depend on the specific terms of the swap agreements and the nature of the subsidy.
it does not state a collateral type, but does state USD as denomiation, so this is highly on the table. the question is who is the counterparty, seller and buyer of them. this, no one would know unless anons dug further into the funds, the etfs, and really scoured historically to figure out the ownership of all of AIG's debt.
TLDR:
the long run standing here is, Burry's bet didn't bubble. nothing bubbled. there were ripples in the markets while they figured out how to securitize, collateralize, inject credit, and continue. directly after these posts and this message, is when the everything short began.
You might wonder how i know this shit. I do my own research. I hope you choose to DYOR frens. I created tools, have shown my path to learn while citing and sourcing everything. it's how i found citadels credit default swap too. the one that saved them, goober boy from bulgaria and mr dipshit in a suit from melvin.
imagine some anon doing his best to show you, they did to burry what they did to us 2021.
they did to us 2008 what they did to 2021. they used credit default swaps to kick the can down the road.
now imagine if salomon needed liquidity for the 1994 credit swaps, then in 1999 if this was something planned, they would need to make covered swaps exempt from reporting. oh wait, they did in the modernization act of 2000. but, if it was planned, then citadel would be created in 1999 in its structuring to allow for co-location flaws, and then could use those flaws to rehypothecate internationally while using QQQ, just like archegos, which feels like citadal v2! oh wait. damn. yeah there too huh. well, what about high frequency spoofing flaws? you know, like sending a million orders at once, then cancelling 99% of them to simply overload the network, like a DDOS attack using LOiC! surely anon, u know loic?
oh wait, they wrote a book on that huh. when the market boy smoved the offices to chicago and installed hi speed data lines, faster than all the OTHER data lines. weird coincidences right?
well shit, i mean if that was the case then when did SPY begin? XLF XRT EEM? I wonder if these schemes we're proving could have been something one would think of when DESIGNING the funds themselves? surely they would be very very intelligent people, more than likely regulators and financial engineers of the utmost levels. surely they wouldnt be bank workers moving to regulators while regulators move to working at banks? oh shit. i mean. yeah. ur right. burry showed that one..
maybe ill make a post about that now.
-_-. a small post on the spy swap baskets involving telsa, qqq, Berkshire, spy, gme, DOGSTOCK, and every other synthetic stock in the market. then perhaps ill show you archegos's XRT, QQQ, EEM, XLF baskets as well. I think that one more writeup in this series after would be a good finisher.
I'm sorry i'm taking up so many posts. I'm really trying to make this about th emost important data, and really encourage you all to dig again. i really miss 2021. it reminded me of the old anon rooms when scientology was getting raided. sorry if these posts suck. ill probably come back and revise them after for better data sets and much deeper explanations. thx anons.
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