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"The Fiscal Cliff is a Diversion from the Real Problem"
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[quote:a watchman for YAHSHUA! 28121659:MV8yMDk3NDY3XzM1MzM2MzU2XzQ5MDg5QTZE] [b]APRIL 2, 2008 Credit Default Swaps: A $50 Trillion Problem[/b] http://moneymorning.com/2008/04/02/credit-default-swaps-a-50-trillion-problem/ [b]October 17, 2008 From Newsweek Magazine Credit Default Swaps 600,000,000,000,000?[/b] http://www.thedailybeast.com/newsweek/2008/10/17/600-000-000-000-000.html [b]November 23, 2009 A Thriving Market in CDS for Sovereign Debt[/b] http://blogs.ebusinessware.com/2009/11/23/a-thriving-market-in-cds-for-sovereign-debt/ [b]October 11, 201 Derivatives: The $600 Trillion Time Bomb That's Set To Explode[/b] Do you want to know the real reason banks aren't lending and the PIIGS have control of the barnyard in Europe? It's because risk in the $600 trillion derivatives market isn't evening out. To the contrary, it's growing increasingly concentrated among a select few banks, especially here in the United States. In 2009, five banks held 80% of derivatives in America. Now, just four banks hold a staggering 95.9% of U.S. derivatives, according to a recent report from the Office of the Currency Comptroller. The four banks in question: JPMorgan Chase & Co. (NYSE: JPM), Citigroup Inc. (NYSE: C), Bank of America Corp. (NYSE: BAC) and Goldman Sachs Group Inc. (NYSE: GS). Derivatives played a crucial role in bringing down the global economy, so you would think that the world's top policymakers would have reined these things in by now - but they haven't. Instead of attacking the problem, regulators have let it spiral out of control, and the result is a $600 trillion time bomb called the derivatives market. Think I'm exaggerating? The notional value of the world's derivatives actually is estimated at more than $600 trillion. Notional value, of course, is the total value of a leveraged position's assets. This distinction is necessary because when you're talking about leveraged assets like options and derivatives, a little bit of money can control a disproportionately large position that may be as much as 5, 10, 30, or, in extreme cases, 100 times greater than investments that could be funded only in cash instruments. The world's gross domestic product (GDP) is only about $65 trillion, or roughly 10.83% of the worldwide value of the global derivatives market, according to The Economist. So there is literally not enough money on the planet to backstop the banks trading these things if they run into trouble. Compounding the problem is the fact that nobody even knows if the $600 trillion figure is accurate, because specialized derivatives vehicles like the credit default swaps that are now roiling Europe remain largely unregulated and unaccounted for. Tick...Tick...Tick To be fair, the Bank for International Settlements (BIS) estimated the net notional value of uncollateralized derivatives risks is between $2 trillion and $8 trillion, which is still a staggering amount of money and well beyond the billions being talked about in Europe. Imagine the fallout from a $600 trillion explosion if several banks went down at once. It would eclipse the collapse of Lehman Brothers in no uncertain terms. Full article: http://moneymorning.com/2011/10/12/derivatives-the-600-trillion-time-bomb-thats-set-to-explode/ Salvation only in Jesus Christ for all eternity in our Heavenly Father's eternal Kingdom in Heaven, will be done on earth as is in Heaven. Those who have ears to hear, listen the Word of God is Holy and True, The Holy Bible, look up for your redemption draws near. In Jesus Christ's Holy and precious name Amen! Yahshua Ha'Mashiach is King of Kings and Lord of Lords, get right with God Almighty, YAH is salvation! We give you praise and glory in your Holy name Amen! [/quote]
Original Message
First post, so please cut me some slack here.
I looked everywhere and I don't see where anyone has posted this yet.
This is chilling! Even more chilling than your first post on GLP!!
This ad nauseum mention of the "Fiscal Cliff" is NOTHING compared to what is most probably coming!!!
STOP looking at the Fiscal Cliff and see what's coming behind it.
[
link to www.canadafreepress.com
]
Snippet:
"The fiscal cliff is a less a crisis than a creation that diverts the attention of policymakers, the media and the public away from the big picture abyss that threatens the United States and shifts focus to the smaller and more immediate tax and spending debate associated with the year-end expiration of the Bush tax cuts.
The central problem facing the U.S. that few understand is the growing systemic risk from the unsustainable trajectory of deficit spending and debt accumulation and the
$225 trillion
derivatives exposure largely held by a handful of U.S. banks that are too big to fail."
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