Amount and Concentration of Derivatives Still Threaten Global Economy

anonymous

Former Staff
Jun 2008
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2,873
Passing Through
The easiest way to get rid of these things is to let the ones who are holding them crash or make them illegal like they used to be but this crap of continually bailing out the banks and investment firms has to stop. At the least we should separate banks from investment firms like it used to be.
 

michaelr

Former Staff
Dec 2006
89,668
6,643
FEMA Region 10
The easiest way to get rid of these things is to let the ones who are holding them crash or make them illegal like they used to be but this crap of continually bailing out the banks and investment firms has to stop. At the least we should separate banks from investment firms like it used to be.
I advocate letting the bondholders eat them, but that comes with an awesome price as these things dominate just about every financial function or institution there is. I mean from your auto insurance, to the dollar it self is heavily invested in this garbage.

I think the game is over next month, then afterward we will need real change and a return to sanity. Unfortunately what we will get is more centralization of power the of the economy.
 

anonymous

Former Staff
Jun 2008
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Passing Through
I think the people really want a one world government with a one world currency. Either that or most are simply brain dead.
 

michaelr

Former Staff
Dec 2006
89,668
6,643
FEMA Region 10
I think the people really want a one world government with a one world currency. Either that or most are simply brain dead.
They have been fooled into accepting it. The EU Blastzone should have showed them reality, but for some reason reality doesn't mean shit any more. it is all about this sports mentality of rev-v-blue. I feel like we are in the land of OZ.
 
Feb 2011
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Boise, ID
What happens to the ~70% who do not own their homes outright when the derivative bubble pops?

I'm just trying to wrap my mind around it...
 

michaelr

Former Staff
Dec 2006
89,668
6,643
FEMA Region 10
What happens to the ~70% who do not own their homes outright when the derivative bubble pops?

I'm just trying to wrap my mind around it...
The derivative bubble popped long ago, and it has been requiring maintenance ever since. That is why TARP and WE programs. They continue to be a problem as the MBS continue to suffer with mortgages that are losing value. That's not letting up anytime soon.

Next month looks like a bad month for money markets and other market vehicles. There are a huge number of puts on the S&P and others. I haven't seen numbers like that for a long time and it predicts a blood bad. If, I believe it is a question of which day, that happens job loss will become a huge issue, and with that more of these securities will become even more unstable.

All of this spells bad news for what's left of the economy, so in short homeowners will become more stressed with underwater, or failed mortgages. The securities themselves wont effect the mortgages themselves, just everything attached to the securities, but you have to know that is literally every aspect of the economy, up to and including central banks.
 
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michaelr

Former Staff
Dec 2006
89,668
6,643
FEMA Region 10
Derivatives: The $600 Trillion Time Bomb That's Set to Explode

This brings me to question the "brilliant" plan set by the banks to destroy foreclosed homes. It seem that inflating prices an some at the cost of many would sen these "securities" down the toilet. I guess knowing the "government" will one way or another bail them out makes it less risky FOR THEM, but at what price does that come?
 

anonymous

Former Staff
Jun 2008
10,578
2,873
Passing Through
Robert Wilkins | October 13, 2011

I think we are all missing the point here. The big picture is to collapse the currencies, write off all debts and introduce a new form of universal monetary instrument. When there is blood in the streets and chaos reigns we will accept what is offered to us. All of this stuff has been prepared and rehearse of that you can be sure. Think B.I.S.
The persons running this show have been doing a sensational job in making it all come to pass. Why else would the financial institutions and governments participate in such wild and crazy borrowing and debt?
Push it over a cliff and start fresh with complete control. I believe that Henry Kissinger is one of the principal architects of this long drawn out death (yes he is still operating in the shadows of the US government).
As Henry once said (think 911 and war on terror):

'Today Americans would be outraged if U.N. troops entered Los Angeles to restore order; tomorrow they will be grateful! This is especially true if they were told there was an outside threat from beyond whether real or promulgated, that threatened our very existence. It is then that all peoples of the world will pledge with world leaders to deliver them from this evil. The one thing every man fears is the unknown. When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well being granted to them by their world government.'

All well planned like a chess game. I think that just about says it all.
Derivatives: The $600 Trillion Time Bomb That's Set to Explode - Money Morning
 
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michaelr

Former Staff
Dec 2006
89,668
6,643
FEMA Region 10
These securities are bitting dust, and it starts a spiral that resembles your toilet bowel after a good flush.

GOLDMAN SACHS REPORTS HUGE LOSS, FAR WORSE THAN EXPECTED


Net revenues in Equities were $2.33 billion, 18% higher than the third quarter of 2010. This increase was primarily due to significantly higher commissions and fees, reflecting higher transaction volumes. Securities services net revenues were higher compared with the third quarter of 2010, primarily reflecting the impact of higher average customer balances. In addition, net revenues in equities client execution were slightly higher compared with the third quarter of 2010. During the quarter, Equities operated in an environment characterized by a significant decline in global equity markets and a sharp increase in volatility levels
 
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