Derivatives: The Unregulated Global Casino for Banks

Here is a nightmarish perspective on the Global Derivative Scam and it shows just how much $228.72 TRILLION dollars actually is. For those that are unsure of what a derivative is, here is a great explanation:

A derivative is a legal bet (contract) that derives its value from another asset, such as the future or current value of oil, government bonds or anything else. Ex- A derivative buys you the option (but not obligation) to buy oil in 6 months for today's price/any agreed price, hoping that oil will cost more in future. (I'll bet you it'll cost more in 6 months). Derivative can also be used as insurance, betting that a loan will or won't default before a given date. So its a big betting system, like a Casino, but instead of betting on cards and roulette, you bet on future values and performance of practically anything that holds value. The system is not regulated what-so-ever, and you can buy a derivative on an existing derivative. Most large banks try to prevent smaller investors from gaining access to the derivative market on the basis of there being too much risk. Deriv. market has blown a galactic bubble, just like the real estate bubble or stock market bubble (that's going on right now). Since there is literally no economist in the world that knows exactly how the derivative money flows or how the system works, while derivatives are traded in microseconds by computers, we really don't know what will trigger the crash, or when it will happen, but considering the global financial crisis this system is in for tough times, that will be catastrophic for the world financial system since the 9 largest banks shown below hold a total of $228.72 trillion in Derivatives - Approximately 3 times the entire world economy. No government in world has money for this bailout. Lets take a look at what banks have the biggest Derivative Exposures and what scandals they've been lately involved in. Derivative Data Source: ZeroHedge

This link is one of those presentations that starts small with a $100 dollar bill, and goes up to $228.72 TRILLION dollars, so enjoy, if that is possible.

Click here to take a trip into Insanityland

Nail on Head.

This practice is one of the major causes for the financial collapse and the failure to kick start the banks into loaning.

The banks are making more money being involved in these deals.

Now, the problems really began when they branched off in to Securites and Insurance ventures. But, that will all come to light soon enough.

The best chance we have to stop this crap is for Obama to NOT be re-elected-IMO. His administration has allowed these things to go on with no attempt to stop or regulate them.

Ignorance is bliss, Reality is not

Visualize usually boring data stacked in 100 euro and 100 dollar bills

Ridiculously puts the derivatives into perspective. Who knew a trillion dollars stacked up would be that high. What a mess...

reply to post by OptimusSubprime


Heh, heh ... Yeah, this term "derivatives" or "financial derivatives" is a real hoot in my opinion. It's kind of like overdosing e^x: Necessary organs will eventually fail.