In 2002, Warren Buffet stated that “derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal… We view them as time bombs, both for the parties that deal in them and the economic system.”
He is not alone in that view. Many other investment gurus, from Carl Icahn to Michael Burry, agree with Buffet.
Today, the worldwide derivatives market has reached the astronomical figure of more than $1 quadrillion.
I read that this morning. Chilling.
Heh. This is one of the reasons I cashed mine out. It wasn’t really that large, but the cool thing is that though I had to pay a penalty, I did it literally a month before the dot-com bust. If I’d left it in, I’d have lost a lot more. Unless I had never cashed out, of course.😁
Here is another shocking fact....the money you put into your savings account it not really there. And if the bank goes bust...your deposit is a liability and would be among the last items to be paid through bankruptcy.
(Of course the FDIC insures most of deposits...but the point I am trying to make is that most people have little understanding of how little they actually own.)
Its like they say with gold...”if its not in your hand, its not yours!”
As long as we’re no longer a republic, we own jack ****.
But, but they are all fiduciaries, so you can trust them completely!
And don’t forget that Federal Legislation was passed and signed into law by Barry the Muslim giving the Federal Government the right to SEIZE those retirement accounts for an emergency banking crisis, which is happening as we speak.
In reality, Americans own what are called “security entitlements.”
~~~
What’s new????
If you live in a state with property taxes, you don’t actually own the title to your home. You’re just renting it from the title granting state, and if you fail to pay your rent, you will have it repossessed.
All you really get is the right to sell it again.
In the eyes of the government, everything you get is a privilege. Not a right. Not a true possession.
Review
This is what a bankrupt, corrupt collapsed society looks like.
You will own nothing and like it?
Allow only incremental booking of profit from fee as security matures. Hold the gross amount in balance sheet as deferred revenue.
Does that mean these institutions can sell our securities to cover their losses, and in the selling we lose our securities?
Has that happened?
Financial institutions have failed over past years but I don’t remember reading that ordinary holders of securities have lost them entirely.
I don’t believe that institutions “own” securities held by them.
News Flash: unless you are holding the original, genuine hardcopy certificates in your hot little hands, you don’t actually own any stocks or bonds.
BKMRK.
p
BTC ETFs are a similar situation. Possession is 10/10th’s of the Law. Keep your Coins in a combination of cold storage and separate Cryto houses.
The real problem is that BTC is going to become the glue that binds Nation’s in the future. Each nation’s fiat currency will have a value for which it can purchase BTC. Then there is the 3-5% fee for conversion, exchange or trading.
Watch GOLD closely. It is seeing huge out-flows into Bitcoin.
Of course BTC goes up and down, but it is being purchased at a rate of 20-50x daily to the newly minted coin. It is limited to about 21M. Greyscale/FTX are dumping 10,000 BTC a day and it has had not noticeable depreciation upon markets. No one screwed by the DNC FTX campaign scheme is going to lose money - the coins being sold allow them to liquidate accounts in good standing. Two more months of FTX liquidations and 1.5 months until the halving. Once all the liquidation of FTX/Greyscale holdings are accomplished, the true value of BTC will begin to emerge.
Four BTC today will make you a millionaire a year from now.
I’m in only for t h e 100% match. I cash out quarterly cause I can. Oh, my contributions are in a Roth 401k.
This is about a distinction without a difference.
Also, be aware, that it is pretty easy to change a law: just takes someone with a pen.
Even a bumbling incompetent old codger who lacks legal capacity (to stand trial for crimes committed over many decades) can change a law.