Everything you’ve ever wanted to know about Financial Derivatives but never dared ask

No Floor, image by Mark Pitcher / wiki commons *

No Floor, image by Mark Pitcher / wiki commons *

Financial Derivatives are:

A ¨phony platform on which insolvent financial structures lie¨
A ¨floating fabricated foundation laden with vaporous illicit toxic fabric¨
¨Its floor is mentioned more than seen. It is fake, an illusion.¨

¨Perhaps the ugliest derivative story
is the IRS Tax secure stream contract
very likely used by China as collateral…¨
Jim Willie

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The Roots of the LIBOR crisis: ‘can be found in the broad based sub-prime FRAUD in America’

Image by Wikiwonka42 / Wikimedia *

Rob Kirby (1):

  1. LIBOR would NEVER have appeared broken in the first place – if U.S. ratings agencies had done their job and properly rated poor credit U.S. Mortgage paper appropriately.   Continue reading

Ellen Brown: Why the US Senate won’t touch Jamie Dimon

Image: Fletcher6 / Wikimedia Commons *

“… financial analysts Jim Willie and Rob Kirby think it may be something far larger, deeper, and more ominous. They contend that the $3 billion-plus losses in London hedging transactions that were the subject of the hearing can be traced, not to European sovereign debt (as alleged), but to the record-low interest rates maintained on U.S. government bonds. (…) The low rates are maintained by interest rate swaps, called by Willie a “derivative tool which controls the bond market in a devious artificial manner.”

Ultra-low interest rates MUST be maintained to prevent the debt from overwhelming the government budget.  Near-zero rates also need to be maintained because even a moderate rise would cause multi-trillion dollar derivative losses for the banks (…)”
   Ellen Brown

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Greece’s situation: A cover-job to mask the truth on catastrophic derivatives exposure?

Image: FreeDigitalPhotos.net *

The Truth of the matter is that the situation with Greece is being used as the cover-job to mask the truth about the catastrophic derivatives exposure of the world’s biggest banks.  I demonstrated a couple days ago how looking at just Greece in isolation could lead to tens of billions in losses for the biggest banks – primarily JP Morgan – if Greece leaves the EU and reinstates the drachma as its currency. (…) And the Greek situation – just like the Lehman collapse provided a cover-story for the massive mult-trillion dollar bailout of Wall Street’s finest in 2008 – is nothing more than an insidious cover-story to enable the Fed/ECB/BOE to print up and inject several more trillion in paper fiat currency in order to bail  out the big banks listed above out of their catastrophic insolvency, rendered largely by moral hazard-enabled investment failures made worse by the layering of 10’s of trillions in derivatives over the bad investments.

That’s the bottom line and that’s the Truth that you will never hear about from any politician or any mainstream media source.   Dave in Denver

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Jefferson County, Alabama: The largest municipal bankruptcy filing in U.S. history

Jefferson County, Alabama: Another Victim of Derivatives

by John Hoefle

Jefferson County Alabama Courthouse / Wiki Commons *

LAROUCHEPAC
November 14, 2011

Jefferson County, Alabama, filed for Chapter 9 bankruptcy on Oct. 9, in the largest municipal bankruptcy filing in U.S. history. The county–which contains Birmingham, the state’s largest city–is but the latest in a series of municipal governments destroyed by derivatives. How much of this destruction are we going to tolerate before we reign in the criminality of the financial markets?

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Bankrupt Global Banking System Blowing Apart

Image: David Castillo Dominici / FreeDigitalPhotos.net *

Stock prices of most of the biggest banks in the world
have plunged dramatically
since July 2007.

“Royal Bank of Scotland is down 96%,
Commerzbank is down 94%,
Societe Generale is down 84%,
Intesa Sanpaolo is off 74%,
and Santander is down 37%.
In the U.S.,
Citigroup has fallen 94%,
Bank of America 86%,
Morgan Stanley 78%,
Goldman Sachs 52%,
Morgan Chase 28%,
and Wells Fargo 23%.”

“The financial system is not only eating
nations and populations,
but also eating its own banks,
in a desperate attempt to survive.
” 
LaRouchePac
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Follow the Money: Behind Europe’s Debt Crisis Lurks Another Giant Bailout of Wall Street

European Debts and Deficits / Wiki Commons *

“The Street’s total exposure to the euro zone totals about $2.7 trillion.
“Greece isn’t the real problem. Nor is Ireland, Italy, Portugal, or Spain. The real problem is the financial system — centered on Wall Street. And we still haven’t solved it.”

Robert Reich

“And that problem will not be solved in the way that you might think of it, because the people ‘solving it’ are the same ones who created it. Their every effort will be directed toward increasing their power and preserving their situations and advantages, to the exclusion of most other concerns.”
Harvey Organ
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Anglo-American financiers planned attack against Europe

Wikimedia Commons *

“In the 20th century, Europe managed to commit collective suicide not once, but twice – in 1914, and again starting in 1939. Have the European elites learned absolutely nothing? Has the European public learned absolutely nothing? Is a third collective suicide – this time by a failure to prevent the catastrophic and chaotic breakup of the euro under Anglo-American speculative attack– really inevitable?”

“Those who advocate the demolition of the euro must explain why they insist on surrendering to the brazen aggression of London and New York. Why are they determined to appease Goldman Sachs, Barclays Bank, J.P. Morgan Chase, and the rest of the Anglo-American wolfpack?”  Webster G. Tarpley, Ph.D.    Continue reading