43 Responses to $600 trillion derivative time-bomb: the day the glass ceiling finally cracks

  1. Curtis Folts says:

    And when the crash happens the banks will be hoarding worthless paper. Meanwhile the cities will be rife with looting while the outlying areas will settle more quickly into neighborly bartering. We the people have set ourselves up for this by choosing sides and looking for bad guys where there was simple disagreement. We the people are paying for our indiscretions now, and will do so for some time to come. However, the human spirit being what it is, we the human race will survive and learn and make brand new mistakes later.

    I keep hearing about the Rothschild conspiracies, of which I have no opinion, and thinking that after the crash they’ll be holding a bunch of worthless gold while the people of the world trade work for food and goods and simplify their lives. I pray humanity is wise enough not to create a new money standard that can be hoarded.

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  2. chris smith says:

    It would seem that people should care about this but in fact almost no one except a relatively few informed individuals have bothered to try to understand what happened in 2008. The mainstream media would have us all believe that everything is under control and all we have to do is close our eyes and cross our fingers and wish this all away. It is not going away. There are several on here that read Zerohedge and should know well all the issues important to what is happening and what is about to happen. Suffice to say this will not end well. The MSM would like to whisk away the Occupy Wall Street movement that was preceded by the “Arab Spring”, but it won’t stop. In fact as more jobs are lost and more homes are foreclosed and (here is the key) more young people have no future (they are the ones that usually fight the wars, not the old men on Wall Street), the movement will only gather steam. Inform yourselves! it is the only way you can protect your family and financial security.

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  3. Audrey says:

    That is positively frightening…for all.

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  4. Mike says:

    Is this part of the so called new world order, and or a sighn of the times

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  5. Evo says:

    Alvin, If this whole thing comes tumbling down, what happens the day after.? The figures you speak of, the whole stupid scenario that these people were allowed to indulge in, is way beyond my grasp.
    It’s not so much my generation, and the problems we will face over this, that bothers me, its the legacy we leave to our children. What future do they face, apart from picking up the pieces, of this greed motivated period of our history.?
    It feels like words such as, “respect”, “compassion”, “empathy”, “kindness”, and even, “love”, are fading from our society.
    Have we become so excited by our “new technology era” that we are blinded by it.?
    Forgive me for my “knee-jerk” reaction to some of your posts.
    When I see what some people have done, and how it will effect my kids future, it just comes out.
    And most of all, thank you for allowing me vent it!!

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    • No need to temper your frustration. I understand completely…we’ll carry on and get through this. It’s unfortunate the world has progressed the way it has but now everyone can see clearly, distinctly what is in the heart of man and the destination one arrives at from going inward rather that devoting a life of service and utility for the uplifting of the human race by reaching outward. We do in thoughts, we do it in deeds, we do in actions- we unleash a bushel of bad seeds and this is what sprouts from our presence in the world. We should all ask ourselves is the world any better off by my presence or passing? What lives have I touched, encouraged or destroyed? We have a day of reckoning also with ourselves and it will be no fun reaping the bitter fruits we have spent so much of our lives and resources planting.

      peace and blessings,
      Alvin

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  6. Patty says:

    Isnt’ is said that money is the root of all evil? This never happened when people had only traded with sheep and camels!

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  7. RainMan says:

    The time it takes to count to 1 trillion, (taking one second for each numeral)… over 31,000 years.
    Puts a different slant on the massive amount.

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  8. Philippino Bob says:

    We still have a few years left (4 years) before the first domino falls.
    After that, I am afraid to imagine.

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    • I doubt we have that long Bob, but maybe? Seems like every other day Greece is going back into default and everybody rushes to scrape the bottom of the barrel to prop her back up again. When they can’t anymore. Down she goes.

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  9. an that is how to get the entire system to collapse

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  10. nickk0 says:

    What I would like to know is…… HOW the HELL, did banksters manage to generate 600 TRILLION (estimated) in Derivatives, WHEN the ENTIRE WORLD GDP, is “only” 65 Trillion ??!?!

    – Nick

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    • According to top experts, risky derivatives were not only largely responsible for bringing down the American (and world) economy, but they still pose a substantial systemic risk:

      •A Nobel prize-winning economist (George Akerlof) predicted in 1993 that CDS would cause the next meltdown
      •Warren Buffett called them “weapons of mass destruction” in 2003
      •Warren Buffett’s sidekick Charles T. Munger, has called the CDS prohibition the best solution, and said “it isn’t as though the economic world didn’t function quite well without it, and it isn’t as though what has happened has been so wonderfully desirable that we should logically want more of it”
      •Former Federal Reserve Chairman Alan Greenspan – after being one of their biggest cheerleaders – now says CDS are dangerous
      •Former SEC chairman Christopher Cox said “The virtually unregulated over-the-counter market in credit-default swaps has played a significant role in the credit crisis”
      •Newsweek called CDS “The Monster that Ate Wall Street”
      •President Obama said in a June 17 speech on his plans for finance industry regulatory reform that credit swaps and other derivatives “have threatened the entire financial system”
      •George Soros says the market is still unsafe, and that credit- default swaps are “toxic” and “a very dangerous derivative” because it’s easier and potentially more profitable for investors to bet against companies using them than through so-called short sales.
      •U.S. Congresswoman Maxine Waters introduced a bill in July that tried to ban credit-default swaps because she said they permitted speculation responsible for bringing the financial system to its knees.
      •Nobel prize-winning economist Myron Scholes – who developed much of the pricing structure used in CDS – said that over-the-counter CDS are so dangerous that they should be “blown up or burned”, and we should start fresh
      •A leading credit default swap expert (Satyajit Das) says that the new credit default swap regulations not only won’t help stabilize the economy, they might actually help to destabilize it.
      •Senator Cantwell says that the new derivatives legislation is weaker than current regulation

      Meet the woman who is literally known by some as the real-life Pandora. Her name is Blythe Masters and she helped invent credit dafault swaps. http://www.bloomberg.com/news/2010-08-03/blythe-masters-says-don-t-panic-over-jpmorgan-commodities-loss-job-cuts.html

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    • They are very very good and imaginative thieves. We need to pay for a nice vacation for them. Say a nice federal penitentiary?

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  11. c/o Luisport

    Video of Italian Students Attack Goldman Sachs, Unicredit And Fininvest Headquarters (Berlusconi’s Bank)

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    • Tomwe says:

      This will get increasingly ugly. Crowds and movements may start in a good cause, but can spin out of control. The book “Rumor, Fear, and the Madness of Crowds” lays out some of the scenarios.

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      • I agree. Apparently, what wealth hoarder didn’t consider is when people don’t have jobs- they can be on the streets or protesting in front of your house almost indefinitely. Thanks for the book reccommendation.

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  12. c/o Luisport

    Portuguese Military warn Goverment that they are against austerity measures!
    Antonio Lima Coelho admits that “for ordinary people is very difficult to fail to meet their commitments, but to a soldier who is obliged to comply with the laws of the Republic is much more serious.”

    The military thus ensure that “serve the Portuguese people and not private institutions,” and warns, “Let no one dare to think that the armed forces can be used in the repression of social upheaval that these measures may cause.”

    Asked about a possible hardening of the protests by the military, the Association adds that “revolutions do not announce themselves when they come, they come because they have arrived, but I hope the good of the rule of law ever such a scenario will be put “he concludes.

    Recall that last month Passos Coelho was keen to stress in the speech he chose for the closing session of the Party of the People in Campo Maior, that “in Portugal, there are right to protest, no right to strike. These are rights that are enshrined in the Constitution and who have earned widespread consensus in Portugal. ”

    http://economico.sapo.pt/noticias/militares-avisam-governo-que-estao-com-a-populacao-contra-a-austeridade_129069.html

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  13. And most people have their heads in the sand because all this talk is boring and interferes with their everyday lives. Okay sheeple, just keeps your heads in that nice, warm sand. There’s nothing to see here. Oh, and don’t worry about the ceiling that is crashing down around you.

    Maranatha

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  14. Ian says:

    The problem is, in these modern times, after practically all restrictions and oversight was removed from the financial sector and they were allowed to police themselves (hahaha), the problems have spiralled out of control. They created ever more risky betting mechanisms in the name of wealth and the prevailing get-rich-quick culture and nobody bothered to stop them. Lets be clear, these leeches produce nothing of any benefit to mankind, just take from it, and I think the time is rapidly approaching when the people will have no option but to say “no more”. The governments, in the pockets of the bankers, have tried to keep the people down and protect the bankers, at the expense of all of us and even our sovereign economies (treason anyone?) and their time is running out. Steal a loaf of bread to feed you family and go to jail, steal $Billions from the people and get a bonus, and when the bets go wrong, the people will bail them out.
    The only way for them to cover their behinds is to use the tried and tested master reset switch… create another world war! They’ve done it twice before.

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  15. You guys ever heard of the Community Re-Investment Act, a piece of socialist legislation dating back to the Carter era. It forces banks to contract bad mortgages. They spread the risk by issuing derivatives. Don’t blame the banksters! Blame social engineering.

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  16. You are right but US economy is also badly damaged by wars and conflicts started by US government a decade ago. Its now look uncontrollable demise of the empire. Sad part is that most of the nations on this planet have rightly or wrongly associated their economy with the US, so fallout of US economic demise will spread globally

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  17. luisport says:

    BreakingNews Breaking News
    Update: Protesters burn cars in Rome as ‘Occupy’ protests spread worldwide – @TelegraphNews http://tgr.ph/qLIcGv
    há 1 minuto

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  18. luisport says:

    zerohedge zerohedge
    Rome Is Burning – Live Feed http://www.zerohedge.com/node/439187
    há 3 minutos

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  19. luisport says:

    BreakingNews Breaking News
    Police: Anarchists infiltrate protest in Rome; Firefighters battle blaze at an Interior Ministry building – @iDeskCNN http://bit.ly/p1Ls6Y
    há 8 minutos

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  20. Tomwe says:

    Couple of good books on the subject of crashes: “This Tims is Different – Eight Centuries of Financial Folly” by Carment Reinhart and Kenneth Rogoff; and “Freefall” by Joseph Stigletz. Question is after reading them I am still not sure what to do personally.

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  21. PAUL LEO FASO says:

    Pretty simple, arrest the financial “genius”, Allen Greenspan first, then employ the following plan of action on behalf of the American people found at the link BELOW or search:CLASS ACTION LAWSUIT AGAINST THE FEDERAL RESERVE BANK.

    http://www.zerohedge.com/print/365866

    Like

  22. WW says:

    To partially answer Mike “Yes the NWO is involved..and probably beyond imagination”.

    Check out info on the Bushes and their operatives in 2008 (in RMN rumormillnews.com)..but
    one reason they want “the dollar to collapse, the Euro reborn as Rothshcild ‘blue funny money’
    and other outrages..(there was a ‘pink dollar’ at one point..and the Amero)..is that we may be
    entering a “cashless society” after this crash (they have already prepared for it..”Star Trek’s
    Federation was cashless”)..and all the ‘digital money’ on the net might become contaminated.

    Is there any benefit to over 600T in paper-digital speculations?

    Ahem ..YES..if you plan on trading with space aliens…who need lots of your paper…for trading
    planets and technologies. Area51 supposedly has “technologies the Greys gaves us + exotic
    elements and materials..like element 115..and other see Phil Schnieder’s notes*…do we “own planets then?”…possibly, if the greys helped us build cities..stations on Mars..(see exopolitics.com)..Alpha Centauri bases…”other places” Eben?

    Such “planetary ownership…might much more that a ‘few trillion per purchase”..and 600T (or
    more in paper assets..)would cover the investors long term or until the properties themselves
    we adequately investigated, vetted, and formaly “fixed up”.

    Does anyone on Wall St. or with the City of London actually know how to to this?

    Yes. Paul Krugeman wrote a PHd Thesis on “Interstellar Trading”..and a brand spanking new
    Rothschild named David..is working on advanced subjects like space colonies…just like the
    Bass Brothers attempted with the BioSphere (not dead just sleeping on Columbia University
    cash)…anyway,

    ..some expect the “ET’s” to come down and solve this mess…before any pole shifts, meteor
    attacks or “dimensional realighments” raise the populace to 5D.

    Hope those aliens like pink money.

    WW

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  23. Again, the end of an era of dishonest money is upon us. It will not be pretty. A collapse in the monetary system will bring disastrous to all aspects of life.

    Prepare and pray.

    God bless,
    Hubert

    Like

  24. RainMan says:

    ABC, 18th Oct
    Germanys finance minister Wolfgang Schaeuble warned against expecting to much from the European Union summit on Oct 23rd, saying it would not provide a “definate solution” to Europe’s debt crisis.
    Inspiring words of confidence, at least honest.

    Like

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