Support Abortion, We Demand Washngton DC's Aborts the $1.2 Quadrillion Derivatives Market

How in the world did we allow unelected bankers the right to shoot craps with the economic fortunes of our children and the future of the world. Goldman Sachs has been playing master Loan Shark to reckless governmental leaders around the globe. It's long past time we demand that these hustler's at Goldman Sachs eat their losses! Make them take 'ownership' of this house of cards they have erected upon shifting sands.

From today forward their loans and deriviatives are their financial, moral and legal reponsibilty! Mr Blankfien can make everyone whole. Take their bonuses, homes, cars and investment loot and redistribute that money to GS victim's. Those assets will be paid out to victims who are individual investors first before we consider corporate or national governments.

Trading in the $1.2 Quadrillion Derivatives Market should be illegal. Sales of derivatives should be outlawed just as usary laws were once illegal, because they allow political leaders to buy guns, butter and bling without responsibilities to repay those loans until they have left office.

Bill Clinton planted huge 'poison pills' at Fannie, Freddie then left the WH with a ticking time bomb. Focus groups had told little Billy that home ownership was the gold standard of the American dream, so he sadistically allowed unqualified people to temprarily purchase and own 'a home, we now own'

Term limits, limited government budgets to 15% of tax revenue across the board. Revocation of all taxes and fees. Once the IRS is closed down and replaced a 15% flat tax would be imposed across the board.

Political campaigns limited to 6 weeks before the election for public office. Read the insanity below and understand that entrenched politicians in both parties working with corrupt banker's together have lead to chaos and financial instability around the globe.

Let's all demand reform in DC before we send them another dime in tribute. If we could get 15% of the tax paying public to boycott the IRS their house of cards would fall. Batter up!

Big Risk: $1.2 Quadrillion Derivatives Market Dwarfs World GDP

One of the biggest risks to the world's financial health is the $1.2 quadrillion derivatives market. It's complex, it's unregulated, and it ought to be of concern to world leaders that its notional value is 20 times the size of the world economy.

But traders rule the roost -- and as much as risk managers and regulators might want to limit that risk, they lack the power or knowledge to do so.

A quadrillion is a big number: 1,000 times a trillion. Yet according to one of the world's leading derivatives experts, Paul Wilmott, who holds a doctorate in applied mathematics from Oxford University (and whose speaking voice sounds eerily like John Lennon's), $1.2 quadrillion is the so-called notional value of the worldwide derivatives market. To put that in perspective, the world's annual gross domestic product is between $50 trillion and $60 trillion.

Although the profits or losses on that trade have not been realized at the end of the first year, the bank will make an assumption about whether that trade made or lost money each year. Given the power traders wield, they can make the number come out positive so they can receive a hefty bonus -- even though it is too early to tell what the real outcome of the trade will be.

How Trader Incentives Caused the CDO Bubble

Wilmott imagines that this greater incentive to follow the pack is what happened when many traders were piling into collateralized debt obligations. In Wilmott's view, CDO risk managers who had analyzed a future scenario in which housing prices fell and interest rates rose would have concluded that the CDOs would become worthless under that scenario. He imagines that when notified of that possible outcome, CDO traders would have demanded that the risk managers shred that nasty scenario so they could keep trading more CDOs.

Incidentally, the traders who profited by going against the CDO crowd were lone wolves whose compensation did not depend on following the trading floor pack. This reinforces the idea that big bank compensation policies drive dangerous behavior that boosts market volatility.

What You Don't Understand, You Can't Properly Regulate

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