Hot The "$1.5 Quadrillion worth of Toxic Derivatives- bang! Yippee!! Welcome to Mad Max!" Thread

Dublin 4

Dublin 4

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Global Derivatives: $1.5 Quadrillion Time Bomb​

When investing becomes gambling, bad endings follow.

The next credit crunch could make 2008-09 look mild by comparison.

Bank of International Settlements (BIS) data show around $700 trillion in global derivatives.

Along with credit default swaps and other exotic instruments, the total notional derivatives value is about $1.5 quadrillion – about 20% more than in 2008, beyond what anyone can conceive, let alone control if unexpected turmoil strikes.

The late Bob Chapman predicted it. So does Paul Craig Roberts.

It could “destroy Western civilization,” he believes.

Financial deregulation turned Wall Street into a casino with no rules except unrestrained making money.

Catastrophic failure awaits.

It’s just a matter of time.



Global Derivatives: $1.5 Quadrillion Time Bomb | Global Research ...​


Warren Buffett issues a fresh warning about derivatives 'timebomb'

Emphasising a warning he gave last summer, when he described derivatives as “weapons of mass destruction,” Mr Buffett said a major event such as a cyber attack that shut down the financial markets would trigger “enormous gaps in things you thought might be protected by collateral”.



Warren Buffett issues a fresh warning about derivatives 'timebomb'​


Warren Buffett​



Warren Edward Buffett born August 30, 1930 is an American business magnate, investor and philanthropist.

He is considered by some to be one of the most successful investors in the world.

Warren Buffett - Wikipedia, the free encyclopedia​


What is a 'Derivative'

A derivative is a security with a price that is dependent upon or derived from one or more underlying assets.

The derivative itself is a contract between two or more parties based upon the asset or assets.

Its value is determined by fluctuations in the underlying asset.

The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes.

Derivatives either be traded over-the-counter (OTC) or on an exchange. OTC derivatives constitute the greater proportion of derivatives in existence and are unregulated, whereas derivatives traded on exchanges are standardized.

OTC derivatives generally have greater risk for the counterparty than do standardized derivatives.

Derivative Definition


Mad Max

Mad Max is a 1979 Australian dystopian action film directed by George Miller, produced by Byron Kennedy, and starring Mel Gibson as "Mad" Max Rockatansky, Joanne Samuel, Hugh Keays-Byrne, Steve Bisley, Tim Burns, and Roger Ward.

James McCausland and Miller wrote the screenplay from a story by Miller and Kennedy.

The film presents a tale of societal collapse, murder, and vengeance set in a future Australia, in which a vengeful policeman becomes embroiled in a feud with a vicious motorcycle gang.



Mad Max - Wikipedia, the free encyclopedia​


Hopefully the zany Title will bring some attention & focus into the Thread.

Thankfully some of these Derivs will cancel each other out.

We're not quite at Mad Max yet but the Eurozone, Europe's Banks, Yellen & China's oversupply are keeping the Wolf at the Door.

Our entire Society needs to be mindful, careful & cautious regarding this utter Shambles...


Further Reading

Derivatives - The Unregulated Global Casino​





 
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Dublin 4

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1.5 QUADRLLION DOLLAR STORM: EU accuses 13 banks of DERIVATIVES COLLUSION…CITI, GOLDMAN SACHS, BARCLAYS, HSBC, JP MORGAN RBS…ALL OF THEM

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Collusion is an agreement between two or more parties, sometimes illegal and therefore secretive, to limit open competition by deceiving, misleading, or defrauding others of their legal rights, or to obtain an objective forbidden by law typically by defrauding or gaining an unfair advantage. It is an agreement among firms or individuals to divide a market, set prices, limit production or limit opportunities.[1] It can involve “wage fixing, kickbacks, or misrepresenting the independence of the relationship between the colluding parties”.[2] In legal terms, all acts affected by collusion are considered void
https://en.wikipedia.org/wiki/Collusion

The European Commission said on Monday it suspected that 13 top investment banks including Barclays, Deutsche Bank and Goldman Sachs, colluded over derivatives trading in breach of EU antitrust rules.

A preliminary investigation showed that banks colluded to exclude exchanges from the over-the-counter market because they feared involvement by the exchanges “would have reduced their revenues from acting as intermediaries,” the Commission said.

The banks instead allegedly continued over-the-counter trading in the massive credit default swaps (CDS) market between 2006 and 2009 — an opaque business that was seen as contributing to the global financial crisis, the Commission said in a statement.

The EU’s Competition Commissioner Joaquin Almunia said the banks would now have the chance to respond to the accusations, and that if the charges were confirmed once the investigation was completed they could face fines.

“If it is confirmed that banks collectively blocked exchanges from the derivatives market, the Commission could decide to impose sanctions,” Almunia said at a press briefing.

“Exchange trading of credit derivatives improves market transparency and stability,” he said, adding that collusion between the banks to prevent this type of trading would be “a serious breach of our competition rules”.

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Huffpo puts it like this:

BRUSSELS — The European Commission says many of the world’s largest investment banks appear to have colluded to block attempts by exchanges to trade and offer more transparent prices for financial products known as credit derivatives.

The commission, the executive arm of the European Union, said Monday it has informed 13 banks – including Citigroup, Goldman Sachs, JPMorgan and Morgan Stanley – as well as the industry association for derivatives itself, the International Swaps and Derivatives Association, ISDA, of the preliminary conclusions of an investigation that began in March.

The Commissioner for competition policy, Joaquin Almunia, told reporters in Brussels that Deutsche Boerse and the Chicago Mercantile Exchange tried to break into the credit derivatives business between 2006 and 2009.

But “the banks acted collectively to prevent this from happening…because they feared it would reduce their revenues.”

He said the banks will now have a chance to respond, but if the commission’s suspicions are confirmed it “would constitute a serious breach of our competition rules.”

The commission’s investigation focuses on credit default swaps, often known simply as CDS contracts, which are essentially insurance that pays out when a company or country fails to honor a debt.

Indicating the size of the potential market distortion, Almunia said that at the moment there are 2 million such contracts outstanding, with a notational value of 10 trillion euros ($13 trillion).

The big banks have historically traded these contracts “over the counter” – that is, among themselves, releasing little information about trading prices to others who want to buy or sell them.

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Bangkok post



1.5 Quadrillion Dollar Crisis: EU accuses 13 Banks in Derivative Scandal

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Dublin 4

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Cassandra Syndrome

Cassandra Syndrome

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Your doing great work Dublin4.

Everything is place for a new depression, i hope those who read your threads and similar threads like mine have taken note and prepared.

This wont be pretty and wont be over quick.

We could be talking of a decade of serious hard pain.
 
Blokey

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We have had these same scare stories every month, the Euro was supposed to collapse and now its nearly on parity with Sterling.

Not saying I dont think its due to go bust, but the world governments seem to be able to keep us afloat.
 
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Dublin 4

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We had all the scare stories about Brexit but the Loony Left & Far Right seem to be able to wield more & more Power Post Brexit.

The EZ crisis is getting worse not better.
 
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