Posted on 01/04/2015 9:13:01 AM PST by VA Voter
Bonds have been in bull market since the early ‘80s. Thus, an entire generation of investors and money managers (anyone under the age of 55) has been investing in an era in which risk has generally gotten cheaper and cheaper.
This, in turn, has driven the rise in leverage in the financial system. As the risk-free rate fell, so did all other rates of return. Thus investors turned to leverage or using borrowed money to try to gain greater rates of return on their capital.
Today, that leverage has resulted in $100 trillion in bonds with over $555 trillion in derivatives based on bonds.
This bubble, literally dwarfs all other bubbles. To put this into perspective, the Credit Default Swap (CDS) market that nearly took down the financial system in 2008 was only a tenth of this ($50-$60 trillion).
When this bubble bursts, 2008 will look like a picnic.
(Excerpt) Read more at zerohedge.com ...
Correction — it wasn’t Mr. Durden, it was somebody touting his investment marketing newsletter — not to distract too much from the message.
This is the loveliness our wonderful Congress just put the taxpayers back on the hook for, thanks guys, kinda gives you a warm glow doesn’t it ?!
The investment managers will tell you to ride it out in stocks.
Truth is, no one knows what will happen. We’ve been levered up lbefore, but never this badly and in government debt/bonds and zero interest rates.
Maybe others here have more ideas?
Derivatives poo’d all over the economy as Obama was ushered in to office, what are the odds that something similar will be the 2016 October surprise?
I believe the U.N. Secretary General can't be from one of the five permanent Security Council nations.
The supremacy of finance capital over all other forms of capital means the predominance of the rentier and of the financial oligarchy; it means that a small number of financially “powerful” states stand out among all the rest. The extent to which this process is going on may be judged from the statistics on emissions, i.e., the issue of all kinds of securities. - Lenin
Yawn...I’ve been hearing “doom and gloom” about the impending collapse of the economy since I ran around in short pants and Lyndon Johnson was president.
In fact, the opposite is true. Interest rates remain at or near historical lows ... and while these rates are being kept artificially low by governments all over the world, there's still no getting around the fact that someone is willing to accept very low rates of return for minimal risk.
We should also keep in mind that there are two different types of "risk" here: risk of default and interest rate risk. I would suggest that a lot of investors are willing to accept a lot of the latter in exchange for minimizing the former. This would explain why U.S. government bonds are still carrying such low interest rates.
The five permanent Security Council nations also have veto power over the Secretary General nominations, so it's pretty much understood that the Secretary General is going to be a bland person from an inconsequential nation.
I don't think I'd recognize any of the people who have served in this role in my lifetime if I was taking a leak next to him in a bathroom at the United Nations itself. LOL.
“From what I have read elsewhere those bond-based derivatives are actually closer to a quadrillion dollars.”
Once you get to a quintillion dollars then you’re talking about some serious coin!
Also, keep in mind that Nostradamus said that the (third and final) anti-Christ would be from the east and his name will be MABUS. The first one was Napoleon which was spelled as Pax Ney Loron. The second, Hitler, which he spelled as Hister.
How close is MABUS to Obama? Pretty close. Especially if you change the ‘S’ to the Hebrew letter, ‘Sin,’ which makes an ss sound. The Sin looks like the letter O in English. Yes, Nostradamus did know Hebrew.
MABUS or MABUO or OBAMU or UBOMA compared to Obama.
And Obama is from Indonesia which is pretty far east!
The problem with articles like this is that the author is rooting for you to invest in a way that benefits him.
Fortunately, we are only on the hook for about $300 trillion of it.
Presenting The $303 Trillion In Derivatives That US Taxpayers Are Now On The Hook For
http://www.freerepublic.com/focus/news/3236486/posts
I wanted to read the article, but the popup add wouldn’t close. Strange how some sites kill themselves. idiots.
And yet...you'll hear about a woman's labor many times before the baby is ready to arrive.
Looked at another way, there's this little pearl of wisdom: "Just because you're paranoid doesn't mean they aren't out to get you."
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