The Derivatives Market is Unwinding!

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The Derivatives Market is Unwinding! - 6/6/2008 11:35:16 AM

pahunkboy

Posts: 33061
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http://blacklistednews.com/view.asp?ID=6850

You owe $1500.00 that is added to the national debt, for your lovely and generous gift of "liquidity" to bail out Bear Stearns, which the fed claims is not a bail out- [costing over 30 billion dollars]

So what are derivitives? Isnt loss what "insurance companies" are for? Yes.

This piece has some good links to shed some light on it. Wall streets esoteric "derivitives" - which surreal accounting methods- has reached a point where even fellow Wall street tycoons dont trust the valuation of up to 596 trillion $ in derivitives.

Of course none of this matters if you factor in the "house" simmilliar to the gambling casinos, where with bookies, it doesnt matter who loses or who wins, as they profit either way, but they make money on the spread.

Think of amway- or other multimarketing level set up. Each making X%$ each tier. Split, shouffled, dealt and cashed in. All blessed by YOUR elected officials, most of it INSURED by you the tax payer.

Ironically- I probaly beneiftted from this scheme. [getting a mortgage last year]

Then factor in bank fees to these derivitives, if they are anything like credit card fees are pay day loan fees, then we should be shocked by the gutting of the tomb?

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RE: The Derivatives Market is Unwinding! - 6/6/2008 12:19:34 PM

SugarMyChurro

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To make this simpler what you do is simply lump this in with the general con that is our entire monetary system. If they can print bills at will, and they can and do, then the whole system is so elastic as to be worthless. That's why you have to convert money into real property if you have any sense at all.

But every day that you put paper into your pocket and call it wealth you are being robbed of its created value in dozens of ways. It's not the gun in your face but the deals that are brokered by politicians away from the scrutiny of the electorate that rob you of your wealth .

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RE: The Derivatives Market is Unwinding! - 6/6/2008 2:36:17 PM

pahunkboy

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I wonder if money will ever have an expiration date. like coupons and phone cards and such.

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RE: The Derivatives Market is Unwinding! - 6/6/2008 2:43:17 PM

SugarMyChurro

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Of course not, the point is get everyone to hold onto worthless paper.

Remember that fairy tale about trading for magic beans? Well, most beans aren't magic - usually they're worthless beyond the value of a mouthful of food.

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RE: The Derivatives Market is Unwinding! - 6/6/2008 4:19:42 PM

TheIslandofO

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Hell ,I have been preaching about derivatives for almost ten years, on mostly deaf ears. We have not seen the bad side of derivatives yet. It is like feeding a gambler every time he wins a little, it just drives his thirst to gamble.The oil bubble speculation is just the latest round on the use of derivatives by big banks, hedge funds and the like and they are able to hide all of This from regulators as well as there own boards. This is the golden egg that when it hatches, will destroy pretty much the entire global economy from within.Greed created this monster, no place on earth will be free of this when it does implode. Europe was thought to be insulated from it, but as we saw in the last year no banks no world economy are immune to the derivative fallout . Even now it is growing faster then any regulator could stop. Even gold has some derivatives infiltrating into them as part of hedge funds. As I sit here I am watching on overseas boards commodities reacting to oil pressures and markets in Hong Kong and Tokyo. All the laws in the world will not stop those who want to make enormous amounts money, they do not care about the fallout.One day soon some trader in Tokyo or in London makes a derivative play that goes South and triggers the massive bomb that is coming. The previous ones were just a few small grenades behind the front lines. No one is looking at the bomb sitting ever growing in mass, just ahead of us. Do not be surprised that when it does. Anything that is leveraged will be in jeopardy of forfeit, no matter where it lies. Back in 1994,I learned first hand what the results where. I lost all of my 401 k as a result of the Orange County pension fund.The fund managers who went belly up managed our 401k funds,at the time of the funds collapse, was heavily invested in derivatives. After that, I have worked to live sustainable, preparing for when that bomb, white elephant, what ever you want to call it explodes.

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RE: The Derivatives Market is Unwinding! - 6/6/2008 4:22:37 PM

Griswold

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quote:

ORIGINAL: pahunkboy

I wonder if money will ever have an expiration date. like coupons and phone cards and such.

Money always has an expiration date....it's called inflation.

At some point, a value of 100 becomes 0.

At some future point...they simply revalue 0.

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