The risky derivatives market is still alive and possibly worse than before this crisis.

We are building another crisis and it is waiting in the wings. What will trigger it? When will it be triggered.

What is making these derivatives so bad? They are tied to interest rates. They don’t have any more reserves backing them than those before. It is all gambling on speculation that the buyers of these toxic derivatives are smarter than the sellers and the sellers are counting on their being smarter than the buyers.

The policies that put us into this crisis are not only still in place but, being pushed harder, i.e. get more debt moving the economy that was burdened with too much debt which caused this crisis.

The Government is lending money at zero or near zero so banks can speculate in oil, equities, gold, foreign investments, etc. This carry trade is filled with risk of a major short squeeze but, there is no way to really estimate the timing of it. But, when it turns, it could turn fast.

- JanPaul

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