$864 Trillion dollars is what? That is the size of the Derivative Markets in the world according to the Financial Times a few day back. Hedge funds also contribute to these Derivative Markets. There is a video running around the Internet lately that utilizes pop up kitties…..and someone trying to smash down their heads. PETA says…it is all just a joke and that after some careful investigation….no harm is occuring to the kitties. Well, Derivative Markets are much different. Trying to pick winners and losers is much akin to betting against organized crime in a local horse race. You aren’t going to be winning very often.
Fed Chairman Ben Bernanke spoke before Congress again today. The Chairman was reluctant to answer, but finally did answer Congresswoman Kaptur that Black Rock Financial was handling everything from the TARP Funds and that all the Derivative market people that were getting TARP funds were getting 100% and made whole. It was a gut wrencher…..to listen to. These are the same “Slime of Wall Street” that keep getting made whole, while GM workers….in the neighborhood of 24 thousand will soon be without jobs. Are we talking apples and oranges…or is all of this financial debacle connected in one way or another?
The talk around DC however, is more about “Healthcare” – “Rationed or not”, “Affordable without choices!”, “Unaffordable with choices!”, “Republicans or Democrats” and “Fact or Fiction?” Let’s get back to those Derivatives again: if leveraged 50 to one…..as reported on the Charlie Rose show last week….. and valued as currently worthless…….how does that affect our ideas to fund Healthcare, Energy or anything else?
In the meantime, the “Oil Speculators”….yep, remember them? “They’rrrree Backkkkkkk!”. The cost of a barrel of oil….a couple of months back hit a low of about $33 dollars….is now back up to around $65…bucks a barrel.. down from a recent high of about $69 this last week. The cost of a gallon of gas has risen from just under $2 dollar a gallon for low test….to almost $3 bucks…….high test of course…! Obviously, those “made whole” “Derivative and Hedge Funds” people paid off by Black Rock had to put their cash someplace! If they keep that up……the artificial price for a gallon of gas will be hitting $5 bucks a gallon soon. That, all without the soon to be released “Cap and Trade Tax” on Energy. So, who gets ripped in all this again? Yep, “Joe the Plumber”!
Who is going to fund those worthless “Derivatives” again? $864 Trillion dollars worth of them? How is it that Social Security is not going to give out a Cost of Living Increase for 2010 again? Maybe, we should ask Black Rock if they will give all the Social Security recipients that cash! Also, when will our Legislators reach into their bag of tricks….and make sure that every Government Employee, Federal, State or Local…..all pay retirement into the Social Security System….instead of their own off-shoot private “Railroad Retirement System”! Maybe, it is time to make Social Security whole along with Black Rock Financial and all their various buddy banks!
So, will it be “Inflation forever”, “Devaluation”, “Government Intervention forever”, “Government Ownership of every Company in America”, “Foreign Ownership of all banks” or is Angela Merkel right……and this is all a big “flim flam” to give the wealth of nations to a few special folks who own most of the world’s big banks?
Through all of this Rush Limbaugh complains that he had to “Rush out”, no pun intended and buy a new SUV before President Obama bans them all. Bill O’Reilly and Sean Hannity keep complaining that they do not know who our President is. Glen Beck is from Mars! Keith Obermann and Rachel Maddow keep yukking it up and Jay Leno is no longer on the “Tonight Show”. “Conan sucks”….and we need to start printing the T-Shirts soon. John & Kate are busy taking bikini pics and the Octo-Mom had to go on TV in London, to be later syndicated here! Kris won American Idol and Shaun won Dancing with the Stars. The Lakers are in the NBA finals against the very cute “Orlando Magic” and 23 year old Dwight Howard. Hard not to like both teams in that one. Our Chicago Blackhawks got blasted by the Detroit Red Wings and now lead the final series against the Pittsburgh Penguins 2 to 1. With eight Swedes on the Roster…..we are going with Detroit to win it 4 games to 1.
Could someone please explain to me the point of this post?
Would someone please explaing to me how to tell the difference between Ron and Anna?
Derivatives are paper that is based on several layers of bonds, stocks and other assests. Based on the hope all things keep going up.
The point of the post I am not sure of.
*Duplicitous actions are always interesting…to someone. If you wondered whether or not the entire world economy was just a little house of cards…..just start adding those leveraged Hedge and Derivative funds by 50…or more times. Hey,
it is only a paper loss probability. But don’t
forget now…when a Credit Card holder “gives you” a credit limit……they have to hold 10-15 percent of that limit in funds as security. Now, think about $864 Trillion dollars! Just food for thought. You don’t care…we don’t care! But when the wheels fall off the skate board…don’t forget “that we told you so”!
Want to do something. Call your electeds and tell them not to keep paying off Unregulated Hedge and Derivative Funds 100%. Perhaps giving
them back their initial 20% investment – when their investment vehicles go upside down – would be more than adequate!