To better understand the terrible threat that Derivatives pose, especially in bringing about the collapse of the entire world economically, I want to present the following article from www.theeconomiccollapseblog.com, entitled: "Derivatives, The Quadrillion Dollar Financial Casino Completely Dominated By The Big International Banks". This is an important article, and the facts presented will shock you:
Derivatives: The Quadrillion Dollar Financial Casino Completely Dominated By The Big International Banks
On the third Wednesday of every month, the nine members of an elite Wall Street society gather in Midtown Manhattan.The men share a common goal: to protect the interests of big banks in the vast market for derivatives, one of the most profitable — and controversial — fields in finance. They also share a common secret: The details of their meetings, even their identities, have been strictly confidential.
"The revenue these dealers make on derivatives is very large and so the incentive they have to protect those revenues is extremely large,” said Darrell Duffie, a professor at the Graduate School of Business at Stanford University, who studied the derivatives market earlier this year with Federal Reserve researchers. “It will be hard for the dealers to keep their market share if everybody who can prove their creditworthiness is allowed into the clearinghouses. So they are making arguments that others shouldn’t be allowed in."
Most Americans don't realize it, but derivatives played a major role in the financial crisis of 2007 and 2008.Do you remember how AIG was constantly in the news for a while there?Well, they weren't in financial trouble because they had written a bunch of bad insurance policies.What had happened is that a subsidiary of AIG had lost more than $18 billion on Credit Default Swaps (derivatives) it had written, and additional losses from derivatives were on the way which could have caused the complete collapse of the insurance giant.So the U.S. government stepped in and bailed them out - all at U.S. taxpayer expense of course.
NTS Notes: Again, to help people understand just how huge this 1 Quadrillion figure for the value of Derivatives really is, as stated in this article, the entire present value of everything on this planet is roughly around 50 TRILLION dollars.... Therefore Derivatives are valued at almost 20 times the entire economic value of Planet Earth today!
There has been much speculation that if Derivatives ever collapsed, it would spell the end of the entire world economically, and the world would be plunged into a new dark age! It is no wonder that these criminal bankers that control the economies and this Derivatives casino, refuse to mention this danger in any major news outlets.
The public definitely needs to be informed of this danger, and again as always it is up to bloggers to spread this truth around. As this article states, keep your eyes on the Derivatives market, because if they ever did crash, it would definitely be duck and cover!
More to come