$516 Trillion Derivatives Market

$516 Trillion Derivatives Market

www.bloomberg.com

Credit-default swaps, contracts designed to protect investors against default and used to speculate on credit quality, led the increase, expanding 49 percent to cover a notional $43 trillion of debt in the six months ended June 30, the BIS said in a report published late yesterday.

Derivatives of debt, currencies, commodities, stocks and interest rates rose 25 percent from the previous six months, the biggest jump since the Basel, Switzerland-based bank began compiling the data.

(visit the link for the full news article)

As I've brought this 'market' up in the 'housing' thread today -- 'derivates' are a scam leading to problems, they aren't inclusive of a physical economy and this number is not fathomable.

We're also dealing w/ a group that formed in 1930 to 'regulate banks & finance markets'?

Wake me up when the fed reserve is abolished and the Senate is in charge of printing the loot, only when that Constitutional norm is returned to, will there be fiscal sanity.... let's not forget the "fate of the dollar" and oil prices and a 'real' stock market.

This is the next word, post trillion -- quadrillion.

www.bloomberg.com
(visit the link for the full news article)

[edit on 25-11-2007 by anhinga]

I'd rather have my girlfriend than a quadrillion dollars.


These greedy parasites can't be happy. What they have is never enough.

It blows my mind how we as a country were indoctrinated into taxation without representation (inflation). You here the mainstream media saying it all the time, 'in todays dollars, adjusted for inflation', and people just accept it as some natural thing. They have no clue that they're being robbed blind! Such a terrible dose of wake up medicine coming.

reply to post by HimWhoHathAnEar


...the worst part about what you mentioned, is obviously, the average citizen isn't clued in to 'record highs' when they talk adjusted.... I just saw this little clip about said topic, well, it relates:

This latest boom and bust of not only subprime mortgages, but of all types of credit ranging from out-of-control consumer credit card issuance to rampant private equity acquisitions have created the largest transfer of wealth from the poor to the rich in modern history. None of the experts on television will ever admit to it because if the average American actually understood what has happened, social upheaval would probably ensue.

It is entirely possible that all of the U.S. banks are currently bankrupt. Just because Citicorp generates billions of dollars every day in revenue doesn't mean that it has any equity left. Between 2005 and 2007, over a quadrillion dollars of CDOs were underwritten. A one percent writedown would amount to at least a trillion dollars worth of losses. Most CDO analysts at the large investment banks have already publicly stated that they expect at least several hundred billion in writedowns, although to date, less than a hundred billion has been announced.

"Rob the Poor to Pay the Rich: 'It is entirely possible that all of the U.S. banks are currently bankrupt'"