PPP - REAL PICTURE - MUST READ IT - ...

PPP - REAL PICTURE - MUST READ IT - Part 1

Posted in the Banking Forum

Roger

New Delhi, India

#1 Jan 13, 2013
FINANCIAL TRADING INSTRUMENTS - TRADING WITH MTN’S

INTRODUCTION

This brief account aims at helping you find out about some of the obscure, or unclear, aspects relating to the Private Placement Opportunity Programs (PPOP), also known as Private Placement Programs (PPP), or under other acronyms like Private Placement Investment Programs (PPIP), etc. There are lots of people who know something, but cannot grasp the whole picture.

The following account is based on our personal experience of several years in this business. To explain the involved matter, we will study it mostly from an investor’s standpoint and a broker’s standpoint.

TOPICS

Before speaking of Private Placement Opportunities (as PPO), we need to realize some basic reasons for the existence of this business. It means that there is a need to learn some basic concepts about what money really is and about how money is created and how the demand for money/credit can be controlled, and that someone can issue a debt note which can be discounted and sold then resold in an arbitrage transaction (the basic system for running most of these programs), etc.

THE BASIC REASONS

To fully understand what it’s all about, there are some basic principles that you must understand:

MONEY CREATION

The first reason why this business exists is to create money. More money is created by creating debt. You as an individual can lend out USD100 to a friend and you can make an agreement where the interest for that is 10%, so that he must pay you back USD110. What you have done is to actually create USD10, even though you don’t see that money. Don’t consider the legal aspects of such an agreement, just the facts. Now, the Banks are doing this every day, but with much more money. Banks have the power to create money out of nothing. Since PPO involves trading with discounted bank issued debt instruments, money is created due to the fact that such instruments are deferred payment obligations (debts). Money is created out from debt. Theoretically, any person/company/organization can issue debt notes (don’t look at the legal aspects of it). Dept notes are deferred payment liabilities.

Example: A lawful person (individual/company/organizati on) is in need of USD100, so he writes a debt note for USD120 that matures after 1 year, which he then sells for USD100 (this is called “discounting”). Theoretically, the issuer is able to issue as many such debt notes at whatever face value he wants – as long as there are those that believe that he’s financially strong enough to honor them upon maturity, and thereby is interested in buying such debt notes. Dept notes like Medium Terms Notes (MTN), Bank Guarantees (BG), Stand-By Letters of Credit (SBLC), etc. are issued at discounted prices by some of the major world banks in a very large amount of Billions USD every day.

Generally speaking they do “create” such notes (debt notes)“out of thin air”, so to speak. That is, they only have to write the documents. It’s as easy as if you, as an individual, write a debt note. Now, the core problem: to issue such a debt note is very simple, but the issuer would have problems in finding a buyer, unless the buyer “believes” that the issuer is financially strong enough to honor that debt note upon maturity. Any bank can issue such a debt note, sell it at discount and promise to pay back the full face value at the time the debt note matures. But would that issuing bank be able to find any buyer for such a debt note without being financially strong enough?

An example: If you had USD1 Million, and had the opportunity to buy a debt note with the face value of USD1 Million issued by one of the largest banks in Western Europe for let’s say USD-800,000 a debt note that matures in 1 year, wouldn’t you then consider buying it if you had the chance to verify it? Now, if a Mr. Smith approaches you on the street and asks you if you want to buy an identical debt note issued by an unknown bank, would you consider that offer?
A Justday

Niagara Falls, NY

#2 Jan 13, 2013
Who is the sucker??? Buy all the bonds and notes from Citibank and you won't have a penny left at end of the day!!!
Roger

New Delhi, India

#3 Jan 13, 2013
A.JUSTDAY - your lack of knowledge once again proved - how dumb you are. Your IQ / knowledge is very weak, try to improve it.
A Justday

Niagara Falls, NY

#4 Jan 13, 2013
Roger wrote:
A.JUSTDAY - your lack of knowledge once again proved - how dumb you are. Your IQ / knowledge is very weak, try to improve it.
You are a low life and mindless twerp just like that one David Cheever of Oahu, Hawaii..Your boss, Bernanke and all US treasury agents are in the last leg of your breadth!!

Heed my words and find a minimum wage job!

Signed, A Justday

PS - I have PhD + PE and I am a builder in America...The question: Who are you??/ Nothing but a trash trying to paddle bonds???

Since: Jul 11

Location hidden

#5 Jan 13, 2013
I know the author of this article. He is in Colorado and he is not you. Nice reporting anyway.

Since: Jul 11

Location hidden

#6 Jan 13, 2013
Roger wrote:
A.JUSTDAY - your lack of knowledge once again proved - how dumb you are. Your IQ / knowledge is very weak, try to improve it.
I fully concur.

Since: Jul 11

Location hidden

#7 Jan 13, 2013
A Justday wrote:
<quoted text>
You are a low life and mindless twerp just like that one David Cheever of Oahu, Hawaii..Your boss, Bernanke and all US treasury agents are in the last leg of your breadth!!
Heed my words and find a minimum wage job!
Signed, A Justday
PS - I have PhD + PE and I am a builder in America...The question: Who are you??/ Nothing but a trash trying to paddle bonds???
LOL!

Sure. I also know people in the streets of NY that have a PH.D., in shoe repair. But, they are smart enough to stick to their profession and not get engaged in lawsuit where they act as their own attorney (and make an ass of themselves) or mingle in banking topics, where their knowledge is nil (like you)!

Reminder: It's time for you to have your daughter change your diaper....again.
A Justday

Niagara Falls, NY

#8 Jan 13, 2013
To lie and cheat..The same low lives from Colorado or India..Who cares???

He is your cohort, Right??

Signed, A Justday
Roger

New Delhi, India

#9 Jan 13, 2013
A Justday wrote:
To lie and cheat..The same low lives from Colorado or India..Who cares???
He is your cohort, Right??
Signed, A Justday
LOL

PHD - ha ha ha...my ass... it seems like you never gone to school this is the reason you are keep getting sued. Give up or get burn more.... idiot.
A Justday

Niagara Falls, NY

#10 Jan 13, 2013
Are you from India or from Colorado, Drit???
Roger

New Delhi, India

#11 Jan 13, 2013
A Justday wrote:
Are you from India or from Colorado, Drit???
stop getting curious, these opportunities are for real people, not for brick layers like your one.

Keep your couple of thousands savings in your account and be happy. You don't deserve more than that. filthy fellow.

Since: Jul 11

Location hidden

#12 Jan 13, 2013
Hey Chinaman! I wouldn't try to bring the one from Colorado into your pissing contest. He has people near you that you wouldn't want them to come to your house and piss all over you. I am not kidding you. Watch who you insult. I for one welcome your comedy. It makes me laugh at your stupid brain cells....whatever you have left.
A Justday

Niagara Falls, NY

#13 Jan 17, 2013
All Drits from Colorado, India and Oahu, Hawaii have no chance to see the lights of this world...They have been swept down the Toilet!!!
Roger

Delhi, India

#14 Jan 18, 2013
A Justday wrote:
All Drits from Colorado, India and Oahu, Hawaii have no chance to see the lights of this world...They have been swept down the Toilet!!!
Brick Layer, I am warning you last time, stop writing these kind of senseless comments or wait for colorado man knock....knock, your apologies will never be accepted later.

Since: Jul 11

Location hidden

#15 Jan 18, 2013
Roger wrote:
<quoted text>
Brick Layer, I am warning you last time, stop writing these kind of senseless comments or wait for colorado man knock....knock, your apologies will never be accepted later.
Thomas Lee is an old fart and his heart won't be able to take a good scare. You want to mess with him? Send him a document that looks like it was sent from his local court building and tell him that he is being summoned to appear in court as a defendant on a certain given day and time. Mentioned that he is being charged with fraud and if he does not show in court, a warrant will be issued for his arrest. Watch him shit his pants!
A Justday

Niagara Falls, NY

#16 Jan 18, 2013
Trying to defame and threaten US Court systems is a good idea for you guys..

When you shave your hair on head; and lie + cheat about your where abouts from India to Colorado, how do you call yourselves???

You can expect what American Justice will do to you!!! FBI is watching!!

Signed, A Justday

PS - Where is Gurgaon, India and Where is Delhi, India and Where in Colorado is named, Gurgaon, India or Delhi, India. You guys are too good for FBI!

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