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(Some Guy)   Derivatives: The Unregulated Global Casino for Banks   (demonocracy.info) divider line 19
    More: Interesting, casinos, money flows, stock market bubble, derivatives, ISO  
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1140 clicks; posted to Business » on 19 Apr 2012 at 11:26 AM (3 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



19 Comments   (+0 »)
   
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2012-04-19 09:23:14 AM  
Pretty much...
 
2012-04-19 10:19:16 AM  
The problem is not derivatives - because they are by definition derived from legitimate financial instruments. Its very much like how mathematics and substitution work - the problem is the snake oil salesmen that don't have to explain how they derived their "new" financial instrument.
 
2012-04-19 10:38:49 AM  
High risk and high reward. Has better odds than Roulette. Where do I sign up?

(You mean my boring stock options are the same thing?)
 
2012-04-19 11:41:53 AM  

me texan: The problem is not derivatives - because they are by definition derived from legitimate financial instruments. Its very much like how mathematics and substitution work - the problem is the snake oil salesmen that don't have to explain how they derived their "new" financial instrument.


I think the point where the system was rigged to fail, as a feature, not something unforseen, but a game of hot potato, is where things went horribly awry.
 
2012-04-19 11:46:53 AM  
Pretty pictures. What's the point of this link?
 
2012-04-19 11:58:39 AM  

Debeo Summa Credo: Pretty pictures. What's the point of this link?


I'm pretty sure that was viral marketing for the new Sim City game.
 
2012-04-19 12:01:57 PM  
What is a "legitimate financial instrument"? You mean a hack, right? That's all financial "products" are. They are selling an equation that sits in the middle of a producer/consumer transaction.

The REAL problem is that financial innovators (otherwise know as white collar criminals), are always one (or a hundred steps) ahead of regulators and investors. Who's in the top 1% in this country? Sure it has a few innovators and celebrities. But the majority are financial wizards who never produced a single tangible product. They just sliced and diced up other business/consumer transactions and siphoned off profit.

Give me the days where a company's purpose was to provide a product or service AND make money doing it. The focus nowadays (among public companies especially) is to make money, and somehow deal with that pesky product or service.

Make a good product, then pick it apart and outsource the components to a cheaper vendor in order to improve your bottom line. And make sure you do it before the quarter end. Meanwhile, make sure to beat your customers to pay you ASAP, and hold off your paying your vendors as long as possible, so Wall street can use your inflated cash flow to prop up it's investment vehicles.
 
2012-04-19 12:38:06 PM  

me texan: The problem is not derivatives - because they are by definition derived from legitimate financial instruments. Its very much like how mathematics and substitution work - the problem is the snake oil salesmen that don't have to explain how they derived their "new" financial instrument.


Do you get paid to write this stuff, or are you just really, really, really stupid?
 
2012-04-19 01:20:00 PM  
Derivatives are integral to the function of banks. They are the solutions to the power of big banks, seriesly.
 
2012-04-19 01:20:48 PM  
Demonocracy.info? Yeah this sounds like a legitimate source for financial news.

Keep on trolling.
 
2012-04-19 01:44:06 PM  
Debeo Summa Credo

Pretty pictures. What's the point of this link?



To keep us informed

I have some of these.

I am not a bank.

Will I go to jail?
 
2012-04-19 02:25:33 PM  
Um, what's the problem exactly? If I buy a call option for a stock with a strike price of $60, then this little article would tell me I have $6,000 tied up in scary derivatives!!!

When in actual fact, I've only bought the option for like $100.

BUT SCARY SCARY DERIVATIVE SCARY SCARY BOOGAH BOOGAH
 
2012-04-19 03:22:20 PM  
FTA:
State Street Financial
State Street has a derivative exposure of $1.390 Trillion dollars.
Too big to fail (TBTF) bank. It has been charged by California Attorney General (among other) lawsuits for massive fraud on California's CalPERS and CalSTRS pension funds - similar to BNY (above).


The lawsuit mentioned in this part doesn't appear to have anything to do with derivatives, only on the amount State Street were charging these two funds for each FX trade. Derivatives can be based on FX gambles but they were sued for charging the highest rate for the day instead of the rate at the time of the exchange.
/works directly with CalSTRS through my client daily
 
2012-04-19 04:21:59 PM  
cdn0.hark.com

Derivates do not work that way!
 
2012-04-19 04:41:22 PM  

Kiinux: Demonocracy.info? Yeah this sounds like a legitimate source for financial news.

Keep on trolling.


ZeroHedge link ok for you?
 
2012-04-19 07:24:00 PM  
Derivatives as de facto insurance polices (against losses on other financial instruments) are the problem - credit default swap

When the exposure is so much greater than the institution's capability to cover the loss, and when institutions have what are essentially mutual protection agreements (sharing exposure to catastrophic losses - losses no collection of financial institutions could hope to cover), you might have a problem.
 
2012-04-19 07:25:08 PM  
these are gross notionals, not net exposures.

fear mongering bullshiat.
 
2012-04-20 07:54:53 AM  

Eapoe6: me texan: The problem is not derivatives - because they are by definition derived from legitimate financial instruments. Its very much like how mathematics and substitution work - the problem is the snake oil salesmen that don't have to explain how they derived their "new" financial instrument.

Do you get paid to write this stuff, or are you just really, really, really stupid?


Is that really bad humor, or do you just not have the first idea how to argue logically?

I wish people would stop calling other people stupid in an attempt to discredit a differing opinion when they don't have the basic understanding of the issue themselves to at least ATTEMPT to explain why that person is stupid.

He may in fact be wrong, but he isnt SO wrong that his statement should be treated as lunacy for existing. Please try to explain your self. It helps everyone.

/ the second and third "really"s just make you sound like a bigger douche who barely knows what he is talking about. SOUND LIKE being the operative word. You might be right.
 
2012-04-20 08:53:23 AM  

I sound fat: Eapoe6: me texan: The problem is not derivatives - because they are by definition derived from legitimate financial instruments. Its very much like how mathematics and substitution work - the problem is the snake oil salesmen that don't have to explain how they derived their "new" financial instrument.

Do you get paid to write this stuff, or are you just really, really, really stupid?

Is that really bad humor, or do you just not have the first idea how to argue logically?

I wish people would stop calling other people stupid in an attempt to discredit a differing opinion when they don't have the basic understanding of the issue themselves to at least ATTEMPT to explain why that person is stupid.

He may in fact be wrong, but he isnt SO wrong that his statement should be treated as lunacy for existing. Please try to explain your self. It helps everyone.

/ the second and third "really"s just make you sound like a bigger douche who barely knows what he is talking about. SOUND LIKE being the operative word. You might be right.


Enough apologies for the thieves running the financial system. ENOUGH. Enough arguments that we need to be polite because they are wearing nice suits. The thieves aren't polite. They are low life thieves in nice suits. You can take you really, really, really, useless semantic argument and shove it where the sun really, really, really never shines.
 
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