Where is the Outrage? OTC derivatives is the problem!
Posted December 2nd, 2008 by SIERRAHPBT
output
we do not have a credit problem... we have a COLLATERAL problem!
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I think they've saving the best (worst) part for last. The size
of that particular part of the debacle is not absolutely known. It varies widely, from a few hundred trillion up to well over a quadrillion, depending whose presentation you're reading. "a few hundred trillion".....did I ever think that I would use such a phrase to describe anything other than galactic distances?
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"An economy built on fiat money is a society on its way to ashes."
It's all just different
It's all just different means to the same end. It isn't sustainable, and it doesn't matter what the government does.
http://federalfallacy.blo...
What's your answer?
Do we let this problem unravel itself...or do we control and regulate the market?
Derivatives are a fact of life in the free market.
you let it unravel itself...
you let it unravel itself... but with that comes a total bust.. derivatives are not a fact of life in a free market. derivatives are relatively new to the market. Ask Paulson! he is the dumb ass who with some help invented them! contrary to what you say there are over 1 quadrillion in derivatives... worthless paper! this is why banks won't loan to other banks! its not a credit crisis... the LIEbor is false.. they say the rates are coming down... thats laughable! best thing to do is let the thing wash itsself out.. let all the idiots who delt in this risky venture bankrupt, let the whole thing collapse themn start over... but as we've seen with the bank bailouts they won't do that they will bailout the jerk weeds on wall strett only prolonging the agony and making it much worse!
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
Paulson invented derivatives?
Huh?
Derivatives have been around for centuries. The first such derivatives were rice futures in 1700's Japan. Read about the Dojima rice exchange sometime. This was shortly thereafter adopted by the colonies and western Europe, who traded in grain futures.
Derivatives are certainly not new. They have gotten very diverse and inventive recently, but Paulson did not invent them.
That's not true
Not true.
See Wiki Investor's description of derivatives.
I quote from there:
Options for example are completely part of the "free-market." And they have been for a long long time. So to conclude, you're statement is just factually incorrect.
Ya, derivates are a voluntary
entered contract between two parties. It's one of the parties defaults, what do I care?
Not anymore
Now it's your problem and mine. You see, our govt. has decided the taxpayers should pay the bill for all failed investment by billionaires.
Lol
If we take that into acct, you're right.