There is currently $600 trillion in derivative positions on a global economy of $60 trillion.
Not a problem eh?
The “cause” is the BANKS lootin and pillaging.They deliberately helped Greece hide its debt.
The “problem ” was the US allowed the banks to defraud the western world.
Finance Superstars Talk About the Massive Fraud in Our Economic System
Nobel Prize-winning economist Joe Stiglitz stated how reducing transparency and hiding information was an essential element to the crisis. Stiglitz concluded, “Innovation was regulator and tax arbitrage Wall Street and the banks deliberately added opacity and complexity to confuse clients and consumers. ”
Frank Partnoy, a finance and legal expert, went after the greatest scam, the derivatives markets.
Mr Partnoy pointed out there is currently $600 trillion in derivative positions on a global economy of $60 trillion.
Derivatives are another off-balance sheet innovation, in which speculators may take pure gambling positions, allowing them to take positions on matters in which they have no stake. It was in paying-off derivatives that a $185 billion of tax-payer money flowed through AIG.
Finance Superstars Talk About the Massive Fraud in Our Economic …
www.alternet.org/…/finance_superstars_talk_about_the_massive_frau…Mar 8, 2010 –
“History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it’s issuance.” — James Madison
Tell me how how can the derivatives market be worth more than the world’s total financial assets?
The Real “Margin” Threat: $600 Trillion In OTC Derivatives
www.zerohedge.com/…/real-margin-threat-600-trillion-exchange-der...Jun 5, 2011 – It is a huge market – some $600 trillion at the end of last year – and … will tell you what it’s worth and/or give you cold, hard cash for the item. …