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The $531 Trillion Dollar Derivatives Time Bomb

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posted on Sep, 1 2009 @ 10:57 PM
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The $531 Trillion Dollar Derivatives Time Bomb


www.infowars.com

What are derivatives? Some investors describe them as “dormant economic weapons of mass destruction”. They essentially are large leveraged bets on top of stocks, bonds and commodities. Money can be made within months or seconds by betting if a stock will go up, down or even remain the same. With no credit rating you can place a bet worth double your account balance. Big time investors get greater leverage with these instantaneous loans.
(visit the link for the full news article)




posted on Sep, 1 2009 @ 10:57 PM
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All which i can say is god damn............... This is going to end very badly. I am still shicked that that much money can even exist out side of the PVT banker's.

I mean that is this much
531,000,000,000,000

All part of the New World Order's master plain. Look at the new world's agenda what would they need and what are they doing right now?

www.infowars.com
(visit the link for the full news article)



posted on Sep, 1 2009 @ 11:05 PM
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Many of those derivaties cancel each other out, and its not like they all come due at once. Still, its a troubling issue.

What I'd like to see happen is simply for certain types of trading and financial instruments to be made illegal. What will probably happen is that a bunch of babies in their Maseratis will come sniviling to congress that the world is coming to an end becuase their counterparty on some ridiculously-acronymed derivative can't make good on their end of the deal and the Fed will quietly hand them a check.



posted on Sep, 1 2009 @ 11:21 PM
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Before all of this bailout BS began, I had read somewhere that the Rothschild family fortune was estimated at 500 Trillion Dollars, so between theirs and the other elitists holdings we could literally zero all debts of all nations on earth and begin again.



posted on Sep, 1 2009 @ 11:32 PM
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Well. I'm not surprised. These elitists have a lot more planned for us long down the road. It's like what has been said before. I think this economic collapse was done scientifically and purposefully. I don't see how it couldn't have been this bad if it wasn't like that.



posted on Sep, 1 2009 @ 11:57 PM
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As someone mentioned, it is impossible for all of the derivatives to 'implode' at the same time. Not to mention derivatives equal many things such as OPTIONS, FUTURES, SWAPS, CDO'S, etc. Many of these derivatives are traded on organized exchanges with regulation and oversight (like with options and futures). Some are OTC (like the credit derivatives that got us into this mess). But the fact is, all the derivatives won't come crashing down all at once...it is actually mostly impossible.



posted on Sep, 1 2009 @ 11:58 PM
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Originally posted by PaulKCA
Before all of this bailout BS began, I had read somewhere that the Rothschild family fortune was estimated at 500 Trillion Dollars, so between theirs and the other elitists holdings we could literally zero all debts of all nations on earth and begin again.


When you control the water-hose, who cares about counting buckets?



posted on Sep, 2 2009 @ 12:00 AM
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This is a bit...over stated, Stock options are derivatives, that obviously adds to the numbers...but they are contracts to buy or sell a stock at a certain price. If a stock goes down, then "put options" go up in value, if the stock goes up then the "call options" go up in value, and visa versa. If you subtract that numbers then you still have a vast number of said "weapons of mass destruction" that aren't going to implode.

Edit: beaten


Originally posted by RetinoidReceptor
As someone mentioned, it is impossible for all of the derivatives to 'implode' at the same time. Not to mention derivatives equal many things such as OPTIONS, FUTURES, SWAPS, CDO'S, etc. Many of these derivatives are traded on organized exchanges with regulation and oversight (like with options and futures). Some are OTC (like the credit derivatives that got us into this mess). But the fact is, all the derivatives won't come crashing down all at once...it is actually mostly impossible.



Originally posted by silent thunder
Many of those derivaties cancel each other out, and its not like they all come due at once. Still, its a troubling issue.


I don't think they should be illegal, a lot of them offset risk and allow companies to hedge...thus profiting from it. Buying oil futures in the future at $80 for 2012 when you think it will be $180+ (and let's say it turns out to be there abouts) then your company is then buying oil at $80 in 2012 when your competitor is buying at $180. Airlines do this ALL the time.

[edit on 2-9-2009 by yellowcard]



posted on Sep, 2 2009 @ 12:27 AM
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Originally posted by PaulKCA
Before all of this bailout BS began, I had read somewhere that the Rothschild family fortune was estimated at 500 Trillion Dollars, so between theirs and the other elitists holdings we could literally zero all debts of all nations on earth and begin again.


HAHAH...

Well good luck with that one...

You will need some mighty big pitchforks and torches...



posted on Sep, 2 2009 @ 12:45 AM
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Derivatives are a function of the markets, and help to provide liquidity and even insurance in the markets.

The numbers have lots of zero's after them, yes, but they exist and will continue to exist, as will the markets that are supported by them.

They seem mysterious, dangerous, and for the common investor or consumer, they are just that.

But they need to be there to maintain balance, regardless.



posted on Sep, 2 2009 @ 01:23 AM
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Hey what seems to be the problem? This is the derivative party, get your hats on because everyone is going to get rammed from behind at this party.

Well of course, unless you are an insider and move your assets to the physical then you should stand to make out even better!!! WOOHOO party on down.


Even if a lot of the derivatives cancel each other out and alot of whats left then is protracted out over long periods of time. Because of the immense scale of things we started with we are still left with lots and lots of potentially devastating derivatives.

Its like this 1 percent of one million is a lot more than 90 percent of one thousand.



posted on Sep, 2 2009 @ 04:50 AM
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I don't know how you do it! I can honestly say I am at a loss for why everyone seeks out and dwells on all this depressive news.

I think at some point you have to just realize that rough times are ahead and start focusing on yourself.

I'm not talking about storing 2 years supply of guns, rice and ammo..I'm talking about your spiritual strength, self esteem and will power. I think the most dangerous situation facing us is extreme depression and the beginnings of severe panic attacks.

I honestly say that your personal safety is not at risk here (with the exception of all the flu fear), what's going to sink you is your heart and mind.

I truly am happy for all of those people who have felt the presence of a higher power inside them, but I'm very sad for the people who rely on worldly things to keep them happy. Those days are over for at least 20 years or so. Be greatfull that your children will have a better life than you if all goes as we hope they will



posted on Sep, 2 2009 @ 05:49 AM
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reply to post by silent thunder
 

What I'd like to see happen is simply for certain types of trading and financial instruments to be made illegal.
I agree. Whilst there are important functions performed through some derivatives, by allowing others the situation is created whereby those with the power to do so have an incentive to manipulate markets without any regard to the actual business those figures represent. In short, they affect ordinary peoples livelihoods for no tangible reason & foster corruption.



posted on Sep, 2 2009 @ 01:08 PM
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reply to post by juzchilln
 


i don't know that it's a matter of relying on worldly things for happiness, but most of us do rely on public utilities and stores to provide food, that kind of thing. everything has to be paid for now days. 20 to 30 years from now, these derivatives will have somehow worked their way through the system either collapsing it or being neutralized, but in the meantime who know what's ahead? we know that TPTB will use whatever happens to rip us off and further enslave us if at all possible.

I agree with you wholeheartedly that we need to focus on inner strength and prepare there as much as possible, but i don't think that's going to eliminate some real hardship coming up for a lot of people. We live in bodies and our bodies need stuff to keep warm, to eat, sometimes to get repaired, to protect babies and raise children. That's the scary part.



posted on Sep, 2 2009 @ 01:18 PM
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I could care less!
It's not real money anyway. It doesn't represent a freaking thing and the fools that were dumb enough to "Bet" on a stock rising or falling or any other form of gambling with money deserve to lose it! In fact, the whole financial system could come crashing down for all I care - then we'd all be free!

The only thing of value in this world is person's life and how they use to contribute to the well-being of other people's lives. These fatass bankers sitting around making money by doing NOTHING is pure BS! I will cheer the day these userers are brought to their knees!

I honestly hope the whole derivitaves bubble goes - BAM- all at once!!!



posted on Sep, 2 2009 @ 01:39 PM
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reply to post by smirkley
 


You must be a stooge for the financial industry because you are so full of the brown stuff it's not even funny. In fact it's rather quite insulting! I'm amazed you have the nerve to spout that b.s. Really!

Hedge funds are private funds that pool the assets of wealthy investors, with the aim of making "absolute returns", making a profit whether the market goes up or down. To maximize their profits they typically use credit borrowed against the fund's assets to leverage their investments. Leverage is the use of borrowed funds to increase purchasing power. The greater the leverage the greater the possible gain or loss. In futures trading, the leverage is called margin. Leveraging on margin or by borrowing money, allows investors to place many more bets than if they had paid the full price. In the 1920s weathly investors engaged in "pooling" - combining their assets to influence the markets for their collective benefit. Like trusts and monopolies, pooling was considered to be a form of collusive interference with the normal market forces of supply and demand. Hedge funds are the modern day variants of this scheme. Hedge funds are now often responsible for over half the daily trading in the equity markets, due to their huge size and the huge amounts of capital funding them.

Derivatives are key investment tools of hedge funds. Basically they are side bets that some underlying investment (stock, commodity, market etc. ) will go up or down. They are not really "investments" because they don't involve the purchase of an asset. The are outside bets on what an asset will do. The more familiar types of derivatives include puts and calls. Over 90% of the derivatives held by banks today are over the counter derivatives or investment devices specially tailored to financial institutions often having exotic and complex features not traded on standard exchanges. They are not regulated, hard to trace and are very hard to understand. Many were written by physicists and are impossible to understand, because they were designed to be so complex and obscure as to mislead investors.

I could go on and on regarding the corruption, deceit, and manipulation involved in hedge funds and derivatives. People like you are liars and are the problem with Wall Street and the entire financial ponzi scheme system in this country.



posted on Sep, 2 2009 @ 01:50 PM
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reply to post by Zosynspiracy
 


Thank you for the rather simplistic study in how hedge funds work.

And by your own unsourced quoted material, it identifies that hedge funds in fact do provide liquidity to the underlying investement.



To further that, larger more experienced investors may desire to hedge the risk involved with those underlying investments, and/or the hedge funds they are active in.

Derivatives are complex instruments devised as a form of insurance, to transfer risk among parties based on their willingness to assume additional risk, or hedge against it.






[edit on 2-9-2009 by smirkley]



posted on Sep, 2 2009 @ 02:03 PM
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reply to post by smirkley
 


You hardly understand them if you state they add liquidity and insurance to the market. In fact the opposite is true. They do neither. And the US Treasury and Federal Reserve bails out these hedge funds who use derivatives left and right. So it's not the derivatives that are providing insurance and liquidity it's the BAILOUTS that are providing it. Remember 1998 and the bankruptcy of Long Term Capital Management? Is it no wonder that the biggest holders of derivatives and hedge funds are Citigroup, JP Morgan Chase, Goldman and Deutsche Bank?????????? Wallsteet has turned into nothing more than a casino with other people gambling with money and assets that are not theirs. But unlike gambling when the house comes to collect they use the FED to bail their arse out.



posted on Sep, 2 2009 @ 02:15 PM
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reply to post by Zosynspiracy
 


I will refrain from defending myself to you or my knowledge, but I will express that I stand by what I know.

And I cannot say there isnt some element of fraud in ANY market or business. That is human nature, but I will say that by and large the derivitive market has purpose as expressed and is a healthy mechanism.

In the example of AIG you will note, there was a flaw. AIG decided on it's own to end up the bagholder for the subprime markets. They assumed the position of holding that risk almost entirely. That was their choice, with the potential of higher return on them.

It didnt work out that way, and the Feds bailed them out to prevent total market collapse. But remember, it wasnt AIG that caused the real estate market to dive, it was the result of several factors, some of which may require oversight adjustment in the future to prevent from happenning again. And the Feds forced themselves on AIG, they didnt go begging for them to cover their losses, per se'.


Wallsteet has turned into nothing more than a casino with other people gambling with money and assets that are not theirs.

Has it ever been any other way? No.



posted on Sep, 2 2009 @ 03:12 PM
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Every time we discuss this particular harbinger of doom I can't seem to bring myself to take the premise of the 'financial vehicle' known as "derivatives' seriously.

I understand that is appears to be a form of gambling in effect, similar to what we see in professional sports, where player injuries are quantified in the calculation of odds for wagering. Similarly, I suppose, the perceived 'strength' or 'viability' of the repayment of debt becomes a factor in collecting debt notes into 'packages' for the express purpose of gambling on it's performance.

I understand that there are those who defend these vehicles' existence as some sort of necessity for the market to function, but I can't see the reason behind allowing the financial establishment the freedom to define the rules and make the odds while betting on the outcome.

And they also exercised the freedom to package our debt, for which we are responsible, into the game as if we were chattel or playing pieces in a game only they seem able to win.

I suspect that our 'missing trillions' are heavily connected to the contrivance. And we may find that the derivatives are the beast which will change the way the world functions; by treachery.

[edit on 2-9-2009 by Maxmars]



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