Saturday, Apr 03, 2010
Nearly time to show your hand
Mi2g: Derivatives Quadrillion Play: How Far Away Are We From A Second Financial Crisis?
In March 2010, the trans-national play of all types of derivatives is down to USD 1.048 Quadrillion, a decline of -25% worldwide. As a result, the global size of the derivatives bubble which was calculated last year at USD 206k per person-on-planet, has fallen to USD 149k per person-on-planet. In parallel, since peaking in the second quarter of 2007, US household wealth is also down by USD 14 trillion. It makes one wonder, how much of the perceived wealth is real, and how much is illusory? "Walls-of-Money" that are no more than leverage, levitating and underpinned by derivatives-based-instruments manifest as complex securities.
Posted by devo @ 05:26 PM (627 views) Add Comment
3 Comments
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1. mander said...
The solution to 1.405 Quadrillion derivatives is 1.405 Quadrillion inflation. The Americans fought the last century the utopic communism and they got themselves in only 10 years in a similar utopic system: the risk free capitalism or the 1.405 Quadrillion derivatives capitalism. I think our freedom is in danger.
2. devo said...
1. mander said... I think our freedom is in danger.
John Gray would say our freedom is an illusion
(thanks for the recommendation, shipbuilder)
3. taffee said...
its interesting that its described by this article and others as a pyramid,so it not if it ends its when and when it does the financial system will collapse......although that may be a positive as another direction will need to be taken in life
What really scares me is if say there was a nuclear bomb blast or exchange which surely must happen at some point...thaat would be the triggerimo.....or the us in a debt auction no-one wants to get involved in.