14 Responses to Unregulated global derivatives debt market hits $647 trillion mark

  1. things are really heating up, Alvin

    Russia Today- Bilderberg 2012 Power Elites Plot in Secrecy
    Published on May 31, 2012 by RTAmerica

    For the last half century an organization of the world’s most powerful political and corporate elites have met annually, in secret all around the world. There is no official press coverage, and the meetings happen behind closed doors. This year the power elite are meeting in Chantilly Virginia, right next to Washington DC. Abby Martin of RT covers the first day of protests and finds out why people are so concerned about its secrecy and what they speculate is being planned.

    http://www.democraticunderground.com/101732011

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  2. Bone Idle says:

    The can kicking can’t go on much longer.
    There is 56 Trillion dollars of refinacing to be carried out worldwide in July.
    Much of this refinacing must be made to banks and soveriegns who are either technically bankrupt, under huge stress or their credit rating is junk
    It will only take one major bank or sovereign to falter and the whole lot will come crashing down.

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    • The system is very near an implosion and the sovereign debt crisis is making it worst; accelerating the explosive growth of the derivatives market that is trying to cover every credit risk in the world in hopes people won’t default. So they artifically inflated the insurance covereage 16 to 20 times all the money known to exist in the world.

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  3. Dennis E. says:

    Yes, being pretty bold about it too……..So, the actors must be in place and its show time.

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  4. AWM says:

    Qoting Barbara’s RT post,
    “For the last half century an organization of the world’s most powerful political and corporate elites have met annually, in secret all around the world. ”

    Heck, I’d meet in secret too if I was responsible for $647 Trillion.
    The damage done by these “elites” is measured in lives lost and opportunities squandered.
    By poverty, disease, and suffering beyond comprehension.

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  5. Paul says:

    What is scary is the $647 Trillion in estimated derivatives is actually on the low end. I have read other articles that put the amount of derivatives as high as $1.5 Quadrillion dollars. Warren Buffet called derivative instruments financial weapons of mass destruction. Thanks for posting this article.

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    • I’ve heard a $1 quadrillion mark too. That’s still 25 to 30 times all the money on the planet…which means there is no way from stopping this bubble from bursting once the pin comes out at the party. Credit has destroyed the world and the Bible warns us about the evils of usury and compounding people into the ground beyond their means. The Eurozone gave every nation a credit card and told them to basically go party and grow their economies and the only country that managed to stay even someone afloat is the country with the largest cash reserves and banks- Germany, the place where all the capital is now flowing. This has all the insidiousness of an elaborate ponzi scheme written all over it.

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  6. Paul says:

    Also wanted to note that according to U.S debt clock org. the U.S derivative exposure is 727 trillion dollars. That is just the U.S!

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    • im

      “One of the earliest CDS deals came out of JPMorgan in December 1997, when the firm put into place the idea hatched in Boca Raton. It essentially took 300 different loans, totaling $9.7 billion, that had been made to a variety of big companies like Ford, Wal-Mart and IBM, and cut them up into pieces known as “tranches” (that’s French for “slices”). The bank then identified the riskiest 10 percent tranche and sold it to investors in what was called the Broad Index Securitized Trust Offering, or Bistro for short. The Bistro was put together by Terri Duhon, at the time a 25-year-old MIT graduate working on JPMorgan’s credit swaps desk in New York—a division that would eventually earn the name the Morgan Mafia for the number of former members who went on to senior positions at global banks and hedge funds. “We made it possible for banks to get their credit risk off their books and into nonfinancial institutions like insurance companies and pension funds,” says Duhon, who now heads her own derivatives consulting business in London.” http://www.thedailybeast.com/newsweek/2008/09/26/the-monster-that-ate-wall-street.html

      http://georgewashington2.blogspot.com/2009/12/woman-who-invented-credit-default-swaps.html

      They hired these young ‘so-called geniuses’ out of the Ivy League schools to come up with all these derivative math formulas involving long algebraic problems that basically was a way of moving your money through an abstract maze into their banking accounts. Every time you carried a one; they were carrying $1000 dollars of your money off to foreign bank accounts.

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  7. Tod says:

    this is a joke. money is just a number on a computer. debt? lmfao. I loan you a dollar for a dollar 23. but I only make a dollar twenty a week well u owe me .03 and interest on that had doubled because your late. but you only pay me so much, how can I get ahead. your supposed to work until your 67 now because we loaned you too much paper which we made from trees that grow in your back yard, but your not allowed to have the prints to make them your selves, you pay us to make your life hell, our name is the government, we are puppets to the bankers & C.E.O’s of all major co-orporations which pollute our rivers, lakes & sea’s. then blame it on us & raise taxes to pretend to fix it, but only make it worse. every one complains but isn’t willing to actually do something about it, quit complaining & grow some balls, fire the politions, grow your own food or help a local farmer, stop eating GMO chickens, cows & plants, fish, everything, stop using the banks!!!

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  8. mark g says:

    A few of my friends get together once a month and play poker. Often we have too much to drink and start making large bets with the chips we handed out at the beginning of the game. The bets get so large that we just laugh. No one gets paid in the end; it all just disappears because it was “notional”. Same thing with derivatives. No one will get paid. Its all make believe.

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    • IMG LB
      Musical chairs: Lehman Brothers had a derivative portfolio worth $35 trillion dollars at the time of its collapse

      Until the music stops and liquidity dries up; then there is a problem. Derivatives in bankruptcy, some lessons: “When it filed for bankruptcy, Lehman Brothers had nearly one million derivative contracts outstanding. This article tells the story of some of those contracts, and the lessons that can be drawn from their fate. Lehman’s counterparties faced a dangerous choice after its Chapter 11 filing: terminate their contracts early—and potentially face large termination payments—or await the uncertain judgment of a bankruptcy court. In adjudicating the cases of those counterparties who chose the latter option, the court overseeing Lehman’s bankruptcy has answered some questions about what happens to derivatives in bankruptcy, while leaving others unresolved. As derivatives, particularly swaps, are central to structured finance, Lehman’s story should be of interest to any structured finance practitioner.” http://www.iijournals.com/doi/abs/10.3905/JSF.2010.15.4.007

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  9. JerseyCynic says:

    oh Tod, oh Tod, OH TOD — I am blue in the face, my friend. (and have alienated most close to me)

    The one tv show I have watched over the years has come to an end. it was the best ending ever!
    I’m turning it all off now (except for visits to alvin’s site, of course)

    I doubled the size of the garden this year! Lot’s of work to do

    To All:

    http://thinkexist.com/quotations/grace/

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