Posted on 04/22/2010 9:48:31 AM PDT by SeekAndFind
Edited on 04/22/2010 9:53:18 AM PDT by Admin Moderator. [history]
As interest rates begin to rise worldwide, losses in derivatives may end up bankrupting a wide range of institutions, including municipalities, state governments, major insurance companies, top investment houses, commercial banks and universities.
Defaults now beginning to occur in a number of European cities prefigure what may end up being the largest financial bubble ever to burst
(Excerpt) Read more at wnd.com ...
Governments worldwide at every level are filled with criminally stupid, but smug and arrogant idiots.
I doubt bailing that out is even possible
Wasn’t it after a depression in the 19th century that ordinary folk began string up bankers from lampposts?
No big deal here. Its nothing more than statists, who put their “spending” in bank accounts over the last 80 years, just want to make a withdrawal. What kind of money do they want their withdrawal in? Answer: in chaos, anarchy, communism, central control (theirs).
Why scam billions when you can scam...trillions?
The guy who had been running Yale's endowment was pretty good but a lot of it was from private equity. Harvard can go to h*ll. Almost every Ivy league grad I have known has been ethically challenged.
I am expecting our national debt to go to a quadrillion dollars. With this bailout in the making that shouldn’t be to difficult to achieve.
Good thing derivatives are legal.
Let them go bankrupt should also apply to banks and car companies. We have an administration that wants to tax us to death to make bailouts part of the system.
This was old news last year. It was $600 trillion then and $600 trillion now. The largest banks would be dead except for an accounting ploys. Guess what didn’t get marked to market on whose books.
aren’t derivatives essentially double dipping on a share of an asset or a loan. Package up securities up multiple times and then sell them. Contribute zero to society
Jerome Corsi explains derivatives thusly :
One of the original ideas behind derivatives was the realization that professional money managers, including those in banks, investment companies and hedge funds, needed to make bets to offset the possibility of taking losses.
A popular form of derivative contracts was developed to permit one money manager to “swap” a stream of variable interest payments with another money manager for a stream of fixed interest payments.
The idea was to use derivative bets on interest rates to “hedge” or balance off the risks taken on interest-rate investments owned in the underlying portfolio.
If an institutional investment manager held $100 million in fixed-rate bonds, for example, to hedge the risk, should interest rates rise or fall in a manner different than projections, a purchase of a $100 million variable interest rate derivative could be constructed to cover the risk.
Whichever way interest rates went, one side to the swap might win and the other might lose.
The money manager losing the bet could expect to get paid on the derivative to compensate for some or all of the losses.
In the strong stock and mortgage markets experienced beginning in the historically low 1-percent interest rate environments of 2003 through 2004, the number of hedge funds soared, just as the volume of derivative contracts soared from a mere $300 trillion in 2005 to the more than $600 trillion today.
OH, but you can bet it sure does help the elitist Harvard/Ivy League snots.
>>I doubt bailing that out is even possible<<
That is the way I have felt about this whole mess for over three years. It is one of the reasons I bought my farm in central Kentucky. We could, if need be, be completely self sufficient there.
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