Easily Understood Explanation of Derivative Markets (In plain language, even a drunk can understand)

Unknown | Email

[Waco]

I suspect we haven’t been told that a lot of States, cities, countys etc use public funds to play this derivative scheme/scam.

[I see my hands]

Why no mention of banks paying back the TARP funds, American Express at 26% interest, for example? Got an anti corporate agenda to advance?

[Popman]

Got an anti corporate agenda to advance?

Huh. No.....................

I love corporations.

Since most people have a deer in the headlight look when you say the word "Derivative" I thought it was a interesting email explaining what happened.

[rstrahan]

I know who said this, and talked with his brother about it. It’s a fund manager, does not keep his money in stocks, but in real estate. Definitely the best explanation I ever heard of derivitives.

[Freddd]

I didn’t mis understand to start with.

The American citizenry were robbed. Biggest heist ever pulled on America, right in front of their eyes.

[TigersEye]

There is another player in the mortgage crisis that isn't represented in this analogy. A customer of Heidi's bar that isn't an unemployed alcoholic. This customer recognizes that he can get wine and beer for free but doesn't want to drink it. He has hidden containers in his clothes and fills them with the free wine and beer. Then he takes it and sells it to another bar or distributor. That would be the house flippers.

There was a thread recently where a good number of FReepers were very proud of themselves for doing this and either said there was nothing immoral about it or were proud of doing the unethical thing because the banks were more unethical.

[CyberAnt]

What was outstanding to me .. how many of the groups of people got involved without really knowing what the heck they were doing.

[depressed in 06]

Missing from the story are, the drunks are bankrolled by their government unemployment benefits, and, therefore, their debts, backed by the government, are declared AAA by the rating agencies.

[jdsteel]

And how the bonds were reduced from triple a to AA with a 12 step process.....

[UCANSEE2]

bookmark

[Revolting cat!]

Purr-hick-fect!

[Popman]

LOL

[Theo]

Look! I can make my comment super-special by putting a box around it too. Look! I'm the exception!
Yes, it really is gay to draw attention to YOUR post by putting a cute little box around it, "I see my hands."