The derivatives bubble doesn’t contain any real money! And the only debt that is creating the crisis is the unreal massive 1 quadrillion phony derivatives "debt" which acts like a black hole sucking out all our real wealth in the form of taxes on our wages. Why can’t the Federal Reserve Bank just eliminate the derivatives bubble and the crisis would stop immediately! Perhaps the Federal Reserve wants the phony derivatives hole to suck out all the real wealth from our country in the form of taxes on our labor, which is the income tax that the Federal Reserve itself created when the Illuminati created the Federal Reserve Bank precisely to steal our wealth.
It contained money, in the form of credits.
I do not see a quadrillion dollar debt.
It can be a black hole but not in the sense you described.
Yes. It has ruined a number of economies over the years.
Derivatives is a generic term to describe short and long bets on commodities and securities which underlie the particular derivative.
The Federal Reserve Bank deals with real dollars and interest rates.
It is questionable whether the Illuminati created the Federal Reserve Bank to steal our wealth. But the Fed is essentially a government run organization which is owned by the banks that are members of the FDIC. Their stock is non-transferable. They can’t sell it. They have to maintain reserves with the Fed to stay in business.
I do not see how the Fed has anything to do with Derivatives. Maybe you’re thinking of the SEC? They’re the ones that should be regulating the derivatives markets.
The reason why the market has shot itself down is that too many investors from around the world bought mortgage backed securities not knowing what they were buying. That is one form of derivatives. In other words their profits depended on the underlying value of the mortgage securities and the performance of those instruments.
My opinion is the sale of such instruments was simply the source of the securities bubble. Many were sold for many times their face value in mortgages. Which created the artificial profits and credits on margin.
When people started selling off those securities in a massive panic, the value of the instruments plummeted on the securities markets, even though the mortgage securities are backed by real estate that has substantial actual value.
That’s the fallacy. You could have 25 trillion dollars in actual value backing these securities and they are marked down to junk status.
This is why the unraveling of the S&L industry starting in the 1970’s through 2003 has changed America from a nation of "savers" to a nation of "debtors" forcing people to buy on credit rather than save money for when they would need it.
on Jul 1st, 2009 at 11:06 pm
How do you think all those pensions and 401Ks gained so much and so quickly in value? This thing is so deeply rooted globally that no really knows the whole of what’s going on. I have not heard anyone fully explain to it down to the level normal people can understand.
References :
on Jul 1st, 2009 at 11:42 pm
I like to give mislead liberals this link so I hope you enjoy it.
References :
http://www.youtube.com/watch?v=NU6fuFrdCJY
on Jul 2nd, 2009 at 12:03 am
It contained money, in the form of credits.
I do not see a quadrillion dollar debt.
It can be a black hole but not in the sense you described.
Yes. It has ruined a number of economies over the years.
Derivatives is a generic term to describe short and long bets on commodities and securities which underlie the particular derivative.
The Federal Reserve Bank deals with real dollars and interest rates.
It is questionable whether the Illuminati created the Federal Reserve Bank to steal our wealth. But the Fed is essentially a government run organization which is owned by the banks that are members of the FDIC. Their stock is non-transferable. They can’t sell it. They have to maintain reserves with the Fed to stay in business.
I do not see how the Fed has anything to do with Derivatives. Maybe you’re thinking of the SEC? They’re the ones that should be regulating the derivatives markets.
The reason why the market has shot itself down is that too many investors from around the world bought mortgage backed securities not knowing what they were buying. That is one form of derivatives. In other words their profits depended on the underlying value of the mortgage securities and the performance of those instruments.
My opinion is the sale of such instruments was simply the source of the securities bubble. Many were sold for many times their face value in mortgages. Which created the artificial profits and credits on margin.
When people started selling off those securities in a massive panic, the value of the instruments plummeted on the securities markets, even though the mortgage securities are backed by real estate that has substantial actual value.
That’s the fallacy. You could have 25 trillion dollars in actual value backing these securities and they are marked down to junk status.
This is why the unraveling of the S&L industry starting in the 1970’s through 2003 has changed America from a nation of "savers" to a nation of "debtors" forcing people to buy on credit rather than save money for when they would need it.
References :