mmm yeah... large part( that comes from printing money) are this stupidity called derivatives that allow such a massive leverage without proper policy...... TIME BOMB....... Another bail out coming shortly I guess.... the plebes will pay for it...... NOTHING HAS CHANGED since year 2000..... THEY WILL TOUCH PEOPLE's SAVINGS NEXT RECESSION TO PAY FOR THE BAIL OUTS.........it's pretty much inevitable....
A list of the same bloody minded, recklessly irresponsible banking institutions that want to gamble without limit and then expect to be bailed out because they are "too big to fail" but seriously need to be locked up in jail ....
United Parcel Service, Inc. Stock Quote & Summary Data UPS $102.93 -11.32 -9.91% UNDERNEATH, reality is falling apart.... but, the mainstream media are doing a great job stealthing major events......
Yeah, but as soon as you try to speak out about "too big to fail" companies holding economies to hostage, you get labelled a socialist as if that is the ultimate, argument-ending insult. Its all about wealth transfer, but the people who immediately jump on the socialism hate bandwagon fail to see that wealth transfer goes both ways. And over the last decade we have seen it favour the ultra wealthy elites.
A levy on savings was already proposed. Not sue what happened. After savers are milked dry, next in line would be super I think. Maybe even a debt holiday for all the housing speculators where loans are forgiven (but someone always pays).
There is no doubt that in years/decades ahead, the OZ government will touch our super..... put this way, they use it as the country's assets right now to borrow money from overseas and to guarantee their stable rate and good economic health..... HAPPY AUSTRALIA DAY ALL......
The Federal Deposit Insurance scheme has about $50/60billion in its coffers to bail out the banks by funding any losses by investors(not depositors these days). Some experts in finance put the total amount in derivatives at over $2 Quadrillion. Derivatives is the BIG PICTURE IN THE WORLD OF FINANCE .When derivatives come crashing down so too will economies of nearly all countries. The FDIS will be bloody useless in trying to stop the panic that will ensue. Even the big boys like Buffett and Soros cant understand how derivatives work so what hope is there for a financially challenged person like me. Regards Errol 43
Well, if the governments of the world and financial instos told us what's REALLY coming economically..... everyone would run to their banks ASAP and take their money out and buy some type of asset class..... it's coming......
I think they all just delude themselves into thinking they can kick the can further and further down the road. Its always some future generation's problem. The majority of politicians themselves become so completely blinded by their psychopathic lust for power that sometimes they even convince themselves of their own lies. But politicians are just puppets, easily manipulated by those who wield true power behind the scenes. Some politicians are obviously good people (and I will risk the wrath of everyone by claiming that I think Abbott is, deep down, a very good man, certainly a far better man than me and I'm not a supporter of the Libs at all) but to survive they tend to let themselves become corrupted, look the other way, or leave politics.
Sounds impressive, especially when trying to convince someone ( if not one's self) that there is $220 trillion at risk. However, the reality is that the amount at risk is only a small fraction of the derivative's book value. ... Though facts like this tend to spoil the permabulls party.
Mr Trader Ten you are a pretty smart guy,how safe is my superannuation regarding your above comments about "them" taking our savings ?????? I can take my super now and I would hate to loose it,what are your thoughts - totally with no obligation to you Thankyou. CGS
Hi wrcmad, Can you back up your claim on ..." the reality is that the amount at risk is only a small fraction of the derivative's book value"..... BTW, the $220 Trillion is also only a portion of the total Derivatives Economics.....
I can't give you financial advise cashgoldsilver....... it's all up to you.... I also cannot advise how safe is your super until things turn ugly..... If you are saying that you can take your super now, you are not an youngish lad... so you should still have time to make your own mind, research and do the best for your hard earned money..... The scene might be different but the story is all much the same..... it has and is happening right now in South America, it has happened in europe...... when governments are desperate and put against the wall by the creditor they will act and bring in a type of austerity measure.... if people think it cannot happen in our backyard they are naive.... our economy is a tiny and very fragile......
Let's not even mention the "Volcker Rule" developments hey...... :lol: Banks had been allowed to continue making big proprietary bets using their own money, despite the lawmakers' intent..... oh well.....
How about a lil story that has just happened recently......... ...."A British broker was wiped out after client losses exceeded its reserves. FXCM, one of the largest retail foreign-exchange brokers in the world, was rescued by a $300 million emergency infusion. Roughly 45 percent of San Diego County's public pension system about $4.6 billion backed by taxpayers is invested by a single manager, Salient Partners of Houston, in a variety of futures, swaps and other derivatives. And Salient is authorized to leverage the entire, $10.3 billion portfolio by 20 percent, placing more than $12 billion at risk in markets."..... http://www.utsandiego.com/news/2015/jan/19/swiss-turmoil-can-teach-pension-speculators/
Perhaps we should recall "yesterday's blunder" from trader London Whale?(A series of derivative transactions involving credit default swaps) James Dimon of J.P. Morgan Chase was prepared in Davos to apologize for the more than $6 billion of trading losses racked up by the so-called London Whale, but he certainly wasn't prepared to abase himself. http://blogs.wsj.com/deals/2013/01/23/jamie-dimon-vs-paul-singer-at-davos/
Not to comment on what the SWISS FRANC movement that "brushed on" us here in OZ land....... Many of Australia's 51,000 retail foreign exchange investors may not -realise how close they came to being wiped out by moves in a -currency they never bet on. While licensed Australian derivatives brokers must keep client funds separate from the licence holder's own money, client funds are typically pooled together. This exposes investors "to the risk of a shortfall in funds should other clients default", said Henry Davis York partner and independent legal expert, Lucinda McCann. Australia is one of the few places in the world along with Cyprus and Mauritius where brokers can use client funds on deposit as collateral for potential losses incurred by the firm on other currency bets. It's a quirk in Australia's corporations law that's been exploited by brokers in a flourishing retail foreign exchange and contract-for-difference industry. It has allowed mostly online brokers to boost their growth without having to risk much of their own capital. http://www.theaustralian.com.au/bus...195252014?nk=28fb1b5f33a4d8943c1b163ba262d7af
