reply to post by jlafleur02
What is a derivative ? Now, that is a good question, in reality no one knows for sure, not even the people who invest in them.
An easy way to picture it is it is a gamble bet on either the rise or fall of a “yield” produced by an investment.
Think about it like this, each investment produces interest from the investment, this increased value is the yield, then the derivative investment is
a side bet, gambling if this said yield will rise or fall, one can bet either direction.
This is the truth of it, a person can have better odds from a table bet at Las Vegas than what a derivative could produce and Las Vegas pays when you
US Banks hold 214 trillion dollars in obligations directly tied to the derivative market, there is only 575 billion dollars in circulation, in no way
can they ever pay these obligations.
Our system is already bankrupt, the Federal Reserve is only keeping the Ponzie scheme going for as long as they can.
The bailout that the Federal Reserve made, backed by using the wealth and labor of the citizens, and their children, and their children’s children
is how the derivative market as been kept afloat so far, but this is coming to an end quickly.
The bailouts that began in 2007 were never about low income persons buying house in which they could not afford. It was always the investment bank
bundling the mortgages and selling the same bundle over and over again, sometimes they had sold the very same bundle to a hundred different
Sounds like fraud to me, someone should have gone to jail, but what the MSM did was to divert the attention away from the criminals and get America to
believe that the collapse was the fault of citizens buying beyond their means.
In 2007 when this all began 41 billion dollars could have purchased every home and paid in full the mortgage that was in default in America, and the
Federal Reserve was given a blank check.
In 2011, now 1.6 trillion dollars later, every home in American that is in default could be purchased for approximately 150 billion, a far way from
1.6 trillion wouldn’t you say.
So, what happened to all of this money, it was given to the large banks to cover their losses in the derivative market.
edit on 8-12-2011 by brokedown because: spelling correction