I hope nobody is paying you for your understanding of exotics.
Today is a good day to die.
I didn't say for whom.
Posted on 02/07/2011 1:08:03 PM PST by FromLori
Lori, Link doesn’t work but the article sounds accurate.
But I thought he was supposed to be a genius at preventing great depressions?
Are derivatives insurance policies?
In bailing them, he’d rather destroy everyone else.
Let them all fail. Sure, it will be difficult, but the alternative is even worse.
FOOD, GUNS & AMMO, EXTRA CLOTHING, TOOLS, SILVER, GOLD (Get ‘em while you still can)
Oh I wonder why sorry here is the link again
Idiotic article. “Derivatives” are zero sum. They are economic non-events because the same money remains in the overall economy.
Some genius his printing is hurting the rest of us with inflation and it’s killing savers he is also helping to cover up.
‘Toxic’ Assets Still Lurking at Banks
“During the financial crisis, investors fretted over “toxic,” hard-to-value assets that banks were carrying. Those fears have faded as bank profits have rebounded, loan delinquencies have declined, and bank stocks have soared 25% in the past five months.
Some banks have yet to reckon with all their “toxic” assets, among them mortgage-backed securities, whose values took a hit when the housing market cratered. Above, construction on a home in Phoenix.
But banks still hold plenty of the bad assets that once spooked investors: mortgage-backed securities, collateralized debt obligations and other risky instruments. Their potential impact concerns some accounting and banking observers.
Continue
http://online.wsj.com/article/SB10001424052748704570104576124701144189910.html?mod=googlenews_wsj
They can be. They are any financial instrument that is based on another financial instrument. Options, futures, futures options, credit default swaps, hedge trades, repackaged cash flows from mortgages marketed as bonds, are all "derivatives".
They often utilize a great deal of leverage, though not always.
So they bet one way and then Bernake has to deliver. Hmmm. We are screwed. I bet food will double again. Wonder what the end game is? War?
I hope nobody is paying you for your understanding of exotics.
It always is.
Debt Deflation on Steroids.
A lot of this is pure hype garbage! Let's see, I am a bank. I have 1000 short soybean contracts and 1000 long soybean contracts on my books. OH MY GOD! A NOTIONAL VALUE OF 2000 contracts X 5000 bushels/contract X the current price of soybeans. THAT IS A BAZILLION!
No not really, the bank is flat, the contracts offset each other.
$223.4 Trillion owed to banks - $223.4 Trillion owed to other banks = $0
Housing prices have continued to fall in many locations after FASB switched to mark to myth back in APR 09 to stabilize the financial sector. The argument made at the time was housing prices had overshot to the downside and didn't reflect true value.
Yes but it’s terrible what it is doing to the rest of us how many times and how many ways do we have to end up paying.
LOL!
You so funny!
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