derivative time bomb -exaggeration ?
- Thread starter zdreg
- Start date
The key isn't the notional value of the derivatives, which vastly exaggerates their importance.
The key is the fact only four banks have more than 90% of the ones outstanding. That's what will lead to a dark age, and that's what hasn't been addressed by the current Administration, and wouldn't be by any Republican replacement, because the latter are ideologically wedded to the stupid idea that the market is some sort of god, while the former has been, as the Obama Administration has conclusively proven, been bought off.
If you think OWS is bad, stupid, and all the rest, well, put on your seat belts. You ain't seen nuthin' yet. When this or something else attributable to this massive, and massively preventable, concentration of risk blows up, there won't be a faux reaction like the idiot Tea Partiers or the stupid crap on here about ending the Fed, which is only the minimum needed to end this nonsense.
It'll be for real, and it'll be magnitudes more significant.
The key is the fact only four banks have more than 90% of the ones outstanding. That's what will lead to a dark age, and that's what hasn't been addressed by the current Administration, and wouldn't be by any Republican replacement, because the latter are ideologically wedded to the stupid idea that the market is some sort of god, while the former has been, as the Obama Administration has conclusively proven, been bought off.
If you think OWS is bad, stupid, and all the rest, well, put on your seat belts. You ain't seen nuthin' yet. When this or something else attributable to this massive, and massively preventable, concentration of risk blows up, there won't be a faux reaction like the idiot Tea Partiers or the stupid crap on here about ending the Fed, which is only the minimum needed to end this nonsense.
It'll be for real, and it'll be magnitudes more significant.
It's all the Illuminati.
M
morganist
Aren't most derivatives like insurance policies and therefore only paid out on failure?
Exactly, which is why I voted "Over Hyped". All things must pass, even my kidney stones.
Most derivatives are swaps converting risks from floating rates to fixed rates, or guaranteeing exchange rates. Their real risk is far smaller than the notionals that they represent.
Absolutely.
It's been all downhill since they convinced the original 13 states to give up their sovereignty and join The Union.