Derivative trading has sucked the air out of America. Every billionaire on wall street as got his media crew jumping up and down at the evil house owners, who had the audacity to not repay their high interest sub prime loan to built a house they could call their own. But nobody wants to talk about how these risky loans got financed in the first place. Home loans are just a part of the much wider network of derivative trading. It is what gave the Banks and investors the courage to fool around in high risk sub prime lending. 8 years of the current President's rule is coming to an end. Americans saw tax breaks for the rich and less regulation on how they earn money. This is what they got in return. Derivative trading cannot be stopped. This is just my two cents here so go ahead and correct me if I am wrong. You can start staggering and regulating the derivative market till it eventually comes to a halt (if that is something that can be done).
Some analysts say the derivative market is several times the GNP of all the nations in the world. I may not be an economist but if something is priced more than its value, pretty soon people will stop buying it. Then its price will crash. I think it will crash several billions below the GNP of all the the nations in the world.
Incidentally.. I say "incidentally" because it seems too stupid to take it seriously.. there is an $700 Billion bailout package for these institutions. Wow! That was fast!! It was only last week that these institutions collapsed. The Bush Government has improved. Remember when they said they don't have money for healthcare, levees in New Orleans, education reform etc?
1 comment:
of course they don't have the money... it's a raid on the treasury, funded by debt to china, that's all. Ex GSax Honcho Paulson is the treasury secretary and he wanted unchecked authority. If it wasn't an election year, the deal would have gone through with those Weimare Republic Democratic ENABLERS and the pussy Rethuglicans. But this time, the republiCONS are the one's who pulled the plug. The US is headed for a 20 year recession like Japan in the 80s and 90s.
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