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Note From Jim: Recap of Lynnette Zang below.

I am only halfway through her video now; been trying to listen to it for the past 90 minutes. It is difficult to listen to. So far I think she is saying that the Federal Reserve forced the LIBOR interest rate to be super low a year ago when the REPO market blew up. So now the LIBOR interest rate is no longer being set by a free market.


Because most financial instruments (including mortgages) is indirectly tied to the LIBOR rate, and Derivatives are issued to protect from changes in interest rates or the valuations of assets, a big change is underway this weekend. The banks are switching from the fraudulent LIBOR rate to a new free floating rate of interest / valuation.

What to expect Monday: Holders of derivatives or large investors in mortgages may find the valuation of those assets have been drastically reduced in Fair Market Value. Do you remember the movie The Big Short? Over the past ten years a lot of those garbage mortgages were purchased by pensions funds. So those pension funds may take big hits. Also watch for gold and silver to shoot up. Watch for the stock market to go crazy because of margin calls due to drop in portfolio valuations.

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