$441 trillion dollar derivative time bomb (good one)

[Large Sarge]

http://theeconomiccollapseblog.com/archives/the-441-trillion-dollar-interest-rate-derivative-timb-bomb

[gunDriller]

it's about interest rate derivatives.

i don't understand why US and world businesses are so keen on these things.

we survived just fine until the mid-90's when credit derivatives started becoming a big part of the FIRE industries (Finance, Insurance, Real Estate.)

then banks & hedge funds started selling insurance on interest rate movements.


the US survived fine without credit derivatives.

having worked in American industry during the 80's & 90's - i would say American industry was stronger in the 80's than it is now.


i think it has to do with Greed & Fraud - the Specialty Areas of the Jews.

Financial institutions collect premiums on credit derivative insurance - but they don't sock any of it away to cover claims, like a normal insurance company.

other Financial institutions buy the insurance - to hedge their losses if X, Y, or Z happens.


Repeat that process a few million times, and you get a financial spider web that is very difficult to map and has the ability to cause contrived emergency events like we saw in 2008/ 2009.

this is progress ?


it's called "diminishing returns of increasing complexity". but people's jobs depend on the complexity, so they have trouble telling the truth about it.


all that increasing complexity doesn't buy us Shit.

[mamboni]

it's about interest rate derivatives.

i don't understand why US and world businesses are so keen on these things.

we survived just fine until the mid-90's when credit derivatives started becoming a big part of the FIRE industries (Finance, Insurance, Real Estate.)

then banks & hedge funds started selling insurance on interest rate movements.


the US survived fine without credit derivatives.

having worked in American industry during the 80's & 90's - i would say American industry was stronger in the 80's than it is now.


i think it has to do with Greed & Fraud - the Specialty Areas of the Jews.

Financial institutions collect premiums on credit derivative insurance - but they don't sock any of it away to cover claims, like a normal insurance company.

other Financial institutions buy the insurance - to hedge their losses if X, Y, or Z happens.


Repeat that process a few million times, and you get a financial spider web that is very difficult to map and has the ability to cause contrived emergency events like we saw in 2008/ 2009.

this is progress ?


it's called "diminishing returns of increasing complexity". but people's jobs depend on the complexity, so they have trouble telling the truth about it.


all that increasing complexity doesn't buy us Shit.

It isn't hard to see what a total scam Wall Street's derivatives represent. When one sells insurance without backing it that is fraud, period. To put the matter on a local level, I can make a lot of money selling 'insurance' derivatives to my neighbors: "Pay me $10 a month to insure your roof, another $10 for each of your cars, for your lawn mower etc." Time goes by and I'm getting hundreds of dollars in premia for doing absolutely nothing. One day, a neighbor's roof is damaged in a storm. He puts in a claim to me. First, I tell him to read the fine print on the policy: "Storm damage not covered." Failing that, I just tell him I'm bankrupt (I spent all the money on booze and broads) and I leave the area to ply my "trade' elsewhere. See how that works? That's what your Wall Street Interest Rate derivative is, a total unbacked scam. And both parties winked and nodded when they agreed to the contract, as they both earned fees and the ability to leverage even more paper. And they both fully expect you and me, John Q. Public, to bail them out when the whole rotten thing blows up.

[Horn]

gundriller,

I'm gonna respond in my best Hypertone, "inflate beyond previous inflatulations".

\uu\

[JohnQPublic]

The only reason we did not colllapse in 2008/2009 was because the market was flooded with printed Fed money. I was running www.siv0.com (http://www.siv0.com) (later renamed to www.derivativescollapse.com (http://www.derivativescollapse.com) ) at that time. Since then, I think a lot of the derivatives contracts have been reworked. I don't think they were able to get rid of the problem, but the as long as the Fed money flowed in, they were able to manage them- sort of like managing a giant cancerous tumor. Eventaully the tumor will kill the patient unless it is removed, but in the case of the world economy, the tumor is bigger than the patient. The derivatives bubble was more like 1 quadrillion$ notional in late 2008 (1000 trillion$). I think it shrank for a couple of years, and from what I have caught has re-expanded and may be approaching 1.5 quadrillion now (worldwide). Given a world GDP of 60 trillion$, the tumor is roughly 25X the size of the host.

Now the derivatives traders know this day is coming, and I can guarantee they have been rearranging the contracts so that when this day comes, they make it to their advantage as much as is possible. I think they are also holding it above the heads of governemnts as a threat (print more and give us these concessions, or else it all comes down on your head- Hank Paulson was basically a spokesman for this in 2008). This scares me. I think this is part of what is happening in the gold/silver markets, but it is much bigger than that. Whatever happens it will be uncontrollabe.

This is why in 2008 I wrote the proclamation at www.RevokeTheFed.com (http://www.RevokeTheFed.com) .

[Silver Rocket Bitches!]

NEVER FORGET Brooksley Born attempted to regulate these "weapons of mass financial destruction" and was blocked by the big three jewish banksters; Greenspan, Summers and Rubin. She would have saved a lot of calamity from happening.

http://www.silverdoctors.com/full-story-of-brooksley-borns-attempts-to-regulate-the-derivatives-market/

[gunDriller]

It isn't hard to see what a total scam Wall Street's derivatives represent. When one sells insurance without backing it that is fraud, period. To put the matter on a local level, I can make a lot of money selling 'insurance' derivatives to my neighbors: "Pay me $10 a month to insure your roof, another $10 for each of your cars, for your lawn mower etc." Time goes by and I'm getting hundreds of dollars in premia for doing absolutely nothing.

would you like to buy some asteroid insurance ?

[Uncle Salty]

Just insure the insurance on the insurance of all the derivatives! Add another layer of protection and all will be well.

[Serpo]

LW in his latest pencil grabbing message ,states that this is how the elite are going to crash everything through derivatives, Jan 1

[Horn]

LW in his latest pencil grabbing message ,states that this is how the elite are going to crash everything through derivatives, Jan 1

And just like a sadistic nutjobs they are,

our local governors will keep buying in, thinking somehow they will be absolved from the lashes of Satan's flog.