"Most people have no idea that Wall Street has become a gigantic financial
casino. The big Wall Street banks are making tens of billions of dollars a year
in the derivatives market, and nobody in the financial community wants the party
to end. The word "derivatives" sounds complicated and technical, but
understanding them is really not that hard. A derivative is essentially a fancy
way of saying that a bet has been made. Originally, these bets were designed to
hedge risk, but today the derivatives market has mushroomed into a mountain of
speculation unlike anything the world has ever seen before. Estimates of the
notional value of the worldwide derivatives market go from $600 trillion all the
way up to $1.5 quadrillion. Keep in mind that the GDP of the entire world is
only somewhere in the neighborhood of $65 trillion. The danger to the global
financial system posed by derivatives is so great that Warren Buffet once called
them "financial weapons
of mass destruction". For now, the financial powers that be are trying to
keep the casino rolling, but it is inevitable that at some point this entire
mess is going to come crashing down. When it does, we are going to be facing a
derivatives crisis that really could destroy the entire global financial system..."
at http://theeconomiccollapseblog.com/archives/the-coming-derivatives-crisis-that-could-destroy-the-entire-global-financial-system
at http://theeconomiccollapseblog.com/archives/the-coming-derivatives-crisis-that-could-destroy-the-entire-global-financial-system
