“derivatives”
Interesting word. I watched a brief film on economics the other day that compared them to side betting or betting parlors that used to exist on the streets of NY that were much of the blame of the great depression and outlawed soon after.
This is why we’ll keep bailing out AIG. We’re bailing a sinking ship with a leaky bucket... and we’re dumping the water right back into the boat.
Aren’t these like bad bets and don’t loan sharks just break knees or worse when somebody wimps out on a debt?
Whose portfolios contain this kind of stuff, nobody I know unless it was done secretly.
Bankruptcy is a good option in my book. The bailouts for this kind of phantom “investment” are just payoffs.
“I spoke with one derivatives trader who manages billions of dollars and she said she couldn’t even value her portfolio because “no one knows anymore who is on the other side of the trade.””
I’m not convinced anyone knows what is really going on.
I didn't see any place in the article where global warming activist and author, Thomas "Green" Kostigen gets his $700 trillion figure.
Is it BS? Does the author wants to "sway attention"?
“no one knows anymore who is on the other side of the trade.”
Question: If you don’t know who you are doing business with, how can you do business in the first place?
Next week they change the accounting rules and Whala! market backt to highs again.
http://latimesblogs.latimes.com/money_co/2009/03/mark-to-market.html
These need to be declared unenforceable and void as a matter of public policy.
And we hope to keep the entire U.S. economy from collapsing, yet gross domestic product stands at $14.2 trillion.
.
Not we, Congress and this President are spending and taxing the entire U.S. economy into collapsing
Thanks, Ernest.
Lots of interesting and valuable information throughout this thread.
According to former Reagan Administration economist Larry Kudlow, what’s really weighing down the markets are Obama’s inane tax increase proposals, especially re the corporation tax and the capital gains tax.
The Bank for International Settlements (BIS) is an international organisation which fosters international monetary and financial cooperation and serves as a bank for central banks.
You ever wonder how many different notes were traded for the same piece of property. It sounds like a thug getting your social security number and selling it to 100 wet backs or me taking out 40 full value loans on the same piece of property...
Did you see this little bundle of joy... http://www.freerepublic.com/focus/f-news/2201386/posts
Link to other study: http://www.marketoracle.co.uk/Article6756.html
ping:(
Ahh, Ernest, I think you have found a new good use for Gitmo....Angelo Mozzilo should be in cell # 1, followed by Frank and Dodd...
whoever came up with these CDA instruments should be cut up in 1” chunks. Slowly. And in public.
I’ve known derivatives were very fishy ever since Barings and LTCM went under