This writer must apologize to that reader that understands. When reference is made
to a layperson, one must not assume that the layperson must lay down and die!
To this writer that financial crisis affecting the world could be summarized in a
short precise mathematical representation being (crisis=X+X^
This writer will attempt to explain the meaning of the various terms so that a
Second Grader can understand. Let’s begin by rephrasing the formula as being
=[financial crisis]. T represents a tangible value [tangible promissory
note] whereas I represents an Intangible value [intangible payment stream], thus
in a home mortgage Loan scenario substitutes as the tangible value of the
Promissory Note
to finance the purchase of Real Property along with an
attached continuous perfected security
right to an alternate means to collect
value owed upon a Tangible Promissory Note if such tangible right is enforceable
in accordance to laws of local jurisdiction. Thus it is a necessity to expand X
Expanding XT is more appropriately to be written as X
TN “or” TS
. Whereas TN
represents the value of a Tangible Note and TS represents a legal enforceable right
to collect the alternate means of value as to value identified in the TN.
In summarization of X we find X equals a value of X. Thus we have one value
equal to one value, thus we shall substitute a note value of (1) to be equal to X.
Thus it can be said, X is equal 1.
Attention is now directed to X
, where the nth is found in the secondary market.
As X has been solved for X, X in X
remains equal to (1), however the value of
the nth has not yet been defined as it would be difficult to determine the number of
times the nth value is applied to X. If the value of X is greater than 1 and the value
of nth is greater than one then X
has a value greater than one thus X has a value
greater than one and failure is imminent. In amazement, attention has been focused
upon the second portion of the equation and the premise that X +X
is equal to
two times the value of X is over looked.
A question presents, how many n
exist and what is the true value for X and what
are the value of the
. Even if the value of the nth’s is discarded, the reduced
formula would read X+X =1 where X equals one is a mathematical impossibility.
J ust a laws have been past to make it legal to create many of the nth’s, proper
application of mathematics note that X+X can not equal X, maybe legal under law
but not in accordance to mathematics.
Similar are the
’s derivative’s, maybe legal but mathematically impossible and
where value is applied, unsustainable PONZI machine.
Under all applicable law that this writer has reviewed, if a tangible obligation
ceases to exist then an alternate means to collect value also ceases to exist.
However, those that have succumbed to the Ponzi scheme as being an intangible
obligee have not a means and method to pursue the account debtor being the
responsible party rely upon words of those servicing the intangible payment stream
that a tangible enforceable alternate means to collect is available, such is a fallacy
under current law. Rule 3001 (d) of the bankruptcy code requires a creditor to file a
Proof of Claim with evidence of a properly perfected right to the real property
being the alternate means to collect value. If no tangible obligation exists, then no
tangible security has any instrument to attach too. Similar, the intangible obligee
has a bridge to cross that does not exist to reach a tangible obligor.