Why scam trillions when you can scam... quadrillions?
Posted on 06/09/2010 12:36:11 PM PDT by SeekAndFind
Peter Cohan is a columnist for DailyFinance. He is president of Peter S. Cohan & Associates, a management consulting and venture capital firm. His ninth book, co-authored with Professor U. Srinivasa Rangan, is Capital Rising: How Global Capital Flows are Changing Business Systems All Over the World. The Achiever Newsletter ranked his eighth book, You Can't Order Change: Lessons from Jim McNerney's turnaround at Boeing, as the #1 business book of 2009. He teaches business strategy to undergraduate and MBA students at Babson College and has also taught at Stanford, MIT, Columbia, and the University of Hong Kong. He has appeared on ABC's "Good Morning America," CNBC, CNN, Fox Business News and the Boston ABC and CBS affiliates. He has been quoted in The New York Times, The Wall Street Journal, Bloomberg News, Time, Newsweek, Fortune, and Business Week.
No one ‘understands’ the risks. It’s just some have the patter down better. The narrative, the story.
I bet some troll will be along shortly to imply that Republicans did it.
“it’s unregulated”
false.
Don’t be telling the gangsta’s in this thugocracy about quadrillions. They’ll be wanting to spend it, and borrow some more.
End it. No bank account insurance, tell people ‘Hey, you wanna go toss your money around, sure, just don't come crying to us when it all gets scammed away from you.’
So what happens if these derivatives blow up, and there are losses which exceed world GDP? Every transaction has a winner and a loser so let’s just say for the sake of a strawman argument with a scary bogeyman, that George Soros is the one guy who wins and is owed more than world GDP. How does he collect? Will governments commit suicide by enforcing the payments and destroying their own economies and industries or will they tell Soros to pound sand?
I tried once to explain this concept of chaining of derivatives to the guy who cleans up our office ( a great black guy to talk to ), and tried to let him appreciate how difficult it is to determine how much one insitution owes another when the whole thing collapses.
His response to me was this : “Why not start all over and let nobody owe nobody nuthin’ ?”
What I am even more scared about is that Obama might read it and find out what comes after a trillion.
Wise beyond his job description. That probably IS what will happen. Everyone will be bankrupt.
My bet is on the Brain Dead Liberal Free Trade Globalist....who loves the UN, WTO, Communist China and George Soros more than he loves America....tells us “how great derivatives are”....especially when they are 20 X the worth of the entire wealth on the Globe
Interesting observation.
All-this-fluff-and-not-a-single-mention-of-how-this-is-only-possible-via-fiat-currency-and-central-banks ping.>>>>>>
The fiat currencies of all developed countries are highly leveraged at this point. This mountain of derivatives takes these currencies and builds on them, leveraging them even further.
Very few derivatives have anything to do with real wealth creation. Commodity futures contracts are very simple derivatives that at least have something to do with cotton or soybeans
A very Old Testament concept called Jubilee.
What happens if you add in all the action on the Lakers’ game?
Tell me more. I think that is where it will end up, much as Romans probably lost both their property and their debts around 476 AD.
Jubilee!
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