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Derivative - Definition of Derivative on Investopedia - A security whose price is dependent upon or derived from one or more underlying assets.
www.investopedia.com/terms/d/derivative.asp - 31k
www.investopedia.com/terms/d/derivative.asp - 31k
Do NOT forget the Derivatives!
The Derivatives Market is about One (1) Quadrillion total. 1 Quardrillion is 1000 Trillion! Think about that for a moment, 1000 Trillion Dollars.
Sixty percent of the Derivatives market (about 575 Trillion) is UNREGULATED. Credit Default Swaps (CDS's), you know, those instruments that originally (supposedly) destroyed the credit and mortgage markets and created this financial crisis (supposedly)... Well, anyway, CDS's make up about 10% of the unregulated Derivatives Market. Yes, that is correct, only 10% of the unregulated Derivatives market is made up from those dastardly CDS's which is simply a mechanism to bet on whether bad loans known as "toxic paper" that were given a Tripple "A" (AAA) rating by Hank Paulson to make them appear attractive would fail or not. Bear Sterns had a total of 13 TRILLION leveraged in the Derivatives market and that is why they collapsed. The same applies to AIG, Fannie Mae and Freddie Mac except we chose to bail them out rather than let them suffer the fate of their own hand and fail accordingly as a natural and very necessary part of a healthy capitalistic economy. Those companies, in some cases, had leveraged themselves 40 to 1 and simply didn't have the funds to "pay up" when the call came due. Their reckless bad bets became your children and grandchildren's crushing financial burdens through the even more reckless actions of the bailout bills that have been passed and passed and those still coming, (like the Everready Battery Bunny). Bailing those institutions out is no different than your neighbor gambling away his house in a drunken stupor and to make way for your local government to pay for his gambling loss, your village passes an emergency ordinance immediately raising your next year's real estate taxes to reimburse the village for paying off his mortgage to save his home from foreclosure leaving your neighbor debt free at your personal expense. For those who support the bailouts, I'm curious how well that comparable scenario would go over with you?
Sixty percent of the Derivatives market (about 575 Trillion) is UNREGULATED. Credit Default Swaps (CDS's), you know, those instruments that originally (supposedly) destroyed the credit and mortgage markets and created this financial crisis (supposedly)... Well, anyway, CDS's make up about 10% of the unregulated Derivatives Market. Yes, that is correct, only 10% of the unregulated Derivatives market is made up from those dastardly CDS's which is simply a mechanism to bet on whether bad loans known as "toxic paper" that were given a Tripple "A" (AAA) rating by Hank Paulson to make them appear attractive would fail or not. Bear Sterns had a total of 13 TRILLION leveraged in the Derivatives market and that is why they collapsed. The same applies to AIG, Fannie Mae and Freddie Mac except we chose to bail them out rather than let them suffer the fate of their own hand and fail accordingly as a natural and very necessary part of a healthy capitalistic economy. Those companies, in some cases, had leveraged themselves 40 to 1 and simply didn't have the funds to "pay up" when the call came due. Their reckless bad bets became your children and grandchildren's crushing financial burdens through the even more reckless actions of the bailout bills that have been passed and passed and those still coming, (like the Everready Battery Bunny). Bailing those institutions out is no different than your neighbor gambling away his house in a drunken stupor and to make way for your local government to pay for his gambling loss, your village passes an emergency ordinance immediately raising your next year's real estate taxes to reimburse the village for paying off his mortgage to save his home from foreclosure leaving your neighbor debt free at your personal expense. For those who support the bailouts, I'm curious how well that comparable scenario would go over with you?
Here is a great article that explains Derivatives in layman's terms Credit Default Swaps: Evolving Financial Meltdown and Derivative Disaster Du Jour.
We the people are furious about these 2-3 Trillion in Bailouts. The scenarios prompting the bailouts to date and those proposed are merely the air leaking out of the very old, deteriorating, and over-blown, unfixable big balloon. The 300 year banking Ponzi Scheme is about to blow apart.  Do the math, 575 Trillion is the real monster and it's about to rear it's ugly head. The 575 Trillion of unregulated Derivatives is "THE" Balloon about to pop and that cannot be bailed out and there is no "intervention fix" available which is precisely the only method that will correct all these financial wrongs and make them right. This is when doing nothing is everything.
Obama's incessent push for this bailout madness is just that; it's MADNESS! At this point, Obama, not Bush, is the one Bankrupting this country.
Please, people, please, WAKE UP! The only thing we NEED to do is to PRODUCE and MANUFACTURE more products. We must produce more if we want to prosper. The financial institution and it's entire structure is a ginormous fraud. The failure of a Ponzi Scheme or Pyramid Scheme is inevitable and that is what we are witnessing here and now. Credit and debt are the culprits for banks have the legal ability to counterfit money by lending out up to 30 times more than they actually have. They merely change the numbers on a computer screen and WHALAH they just have counterfeited US Currency, then "wash" the counterfeit currency by lending it to you where they collect real currency from you when you pay the debt back with interest. This is nothing more than a massive Ponzi Scheme that must continually have new suckers coming in at the bottom to keep the scheme going. Once the suckers dry up and stop buying into it (no longer relying on "credit" and eliminating their debt) the whole scheme is unveiled and only those at the very top make out while everyone beneath them pays the price; in this case, it will be the inevitable collapse of the entire financial system - the Great Big 300 Year Old Ponzi Scheme first created in 1694 with the founding of the Bank of England.
Credit and Debt are the enemy and are the corrupt means used by financial institutions to counterfeit dollars with government approval. If we the people do not wake up and see reality for what it is and begin to learn how to understand this crooked financial structure and immediately make drastic changes by taking monetary control AWAY from private banking (The Federal Reserve Bank) and place it back into the hands of Congress as dictated by the Constitution for the United States of America we are doomed to repeat it all over again when the newest scheme comes to light in disguise as the next great policy to "SAVE" the people of this nation from financial doomsday.
Children cannot have control of the classroom for obvious reasons. Prisoners cannot have control of the prisons for obvious reasons. And, Private Financial Institutions cannot have control of a nation's monetary policy, credit regulation and lending practices for blatantly obvious reasons.
Obama's incessent push for this bailout madness is just that; it's MADNESS! At this point, Obama, not Bush, is the one Bankrupting this country.
Please, people, please, WAKE UP! The only thing we NEED to do is to PRODUCE and MANUFACTURE more products. We must produce more if we want to prosper. The financial institution and it's entire structure is a ginormous fraud. The failure of a Ponzi Scheme or Pyramid Scheme is inevitable and that is what we are witnessing here and now. Credit and debt are the culprits for banks have the legal ability to counterfit money by lending out up to 30 times more than they actually have. They merely change the numbers on a computer screen and WHALAH they just have counterfeited US Currency, then "wash" the counterfeit currency by lending it to you where they collect real currency from you when you pay the debt back with interest. This is nothing more than a massive Ponzi Scheme that must continually have new suckers coming in at the bottom to keep the scheme going. Once the suckers dry up and stop buying into it (no longer relying on "credit" and eliminating their debt) the whole scheme is unveiled and only those at the very top make out while everyone beneath them pays the price; in this case, it will be the inevitable collapse of the entire financial system - the Great Big 300 Year Old Ponzi Scheme first created in 1694 with the founding of the Bank of England.
Credit and Debt are the enemy and are the corrupt means used by financial institutions to counterfeit dollars with government approval. If we the people do not wake up and see reality for what it is and begin to learn how to understand this crooked financial structure and immediately make drastic changes by taking monetary control AWAY from private banking (The Federal Reserve Bank) and place it back into the hands of Congress as dictated by the Constitution for the United States of America we are doomed to repeat it all over again when the newest scheme comes to light in disguise as the next great policy to "SAVE" the people of this nation from financial doomsday.
Children cannot have control of the classroom for obvious reasons. Prisoners cannot have control of the prisons for obvious reasons. And, Private Financial Institutions cannot have control of a nation's monetary policy, credit regulation and lending practices for blatantly obvious reasons.
whereabouts