Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.
Wednesday, July 20, 2016
Why Derivatives Are So Dangerous to the Financial System - Video / Stock-Markets / Derivatives
By: Mario_Innecco
I'd like to talk about derivatives this evening
there's a lot of talk about derivatives and a lot of people have questions about
the rivers so here we go basically you know derivative is a financial instrument almost like an
insurance on an underlying acid and the modern-day derivatives market really
sprung up in nineteenth-century us in the Midwest especially chicago where you
know people came myou know to sell the grains the cattle and the buyers also came to buy the
grains in the cattle and for example a farmer who grew corn he wanted to lock in a price
you know in the future because he thought the price of corn Michael down
and he needed to know how much money he was going to get he would you know sell
a future in corn and the the buyer of the corn
Saturday, July 25, 2015
$1.5 Quadrillion Derivatives Time Bomb / Stock-Markets / Derivatives
By: STRATFOR
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.
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Friday, December 19, 2014
Derivatives and Mass Financial Destruction / Stock-Markets / Derivatives
By: Alasdair_Macleod
Globally systemically important banks (G-SIBs in the language of the Financial Stability Board) are to be bailed-in if they fail, moving the cost from governments to the depositors, bondholders and shareholders. There are exceptions to this rule, principally, small depositors who are protected by government schemes, and also derivatives, so the bail-in is partial and bail-out in these respects still applies.
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Saturday, July 26, 2014
Derivatives Market Species Origins - Abuse, Props and Risks / Stock-Markets / Derivatives
By: Jim_Willie_CB
The topic of financial derivatives is a huge can of worms. The subject has arisen in the financial press much more in the last few years since the global financial crisis turned critical and became a clear case of grand struggle to prevent a veritable collapse. In a loose sense, the derivatives are the scotch tape, bailing wire, band-aids, and chewing gum holding the system together, the glue and adhesive, with rose colored glasses used with a large amount of deception. Another analogy preferred for usage by the Jackass is the floating fabricated foundation laden with vaporous illicit toxic fabric, the phony platform on which insolvent structures lie. That the big banks do not serve well as credit engines or investment crucibles is no surprise. They are insolvent, and their derivative foundation is fractured. It is very difficult to explain how the derivatives serve as foundation. Imagine a spinning wheel, spinning very fast, except that the flat disk has almost zero mass. It spins so fast that it appears to serve as a platform which can support weight. Its floor is mentioned more than seen. It is fake, an illusion.
Tuesday, May 20, 2014
The $12 Trillion Derivatives Ticking Time Bomb / Stock-Markets / Derivatives
By: Graham_Summers
Time and again, we’ve been told that the Great Crisis of 2008 has ended and that we’re in a recovery.
Indeed, earlier this year, we were even told by Fed Chair Janet Yellen that the Fed may in fact raise interest rates as early as next year.
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Tuesday, December 17, 2013
U.S. Outstanding Credit Vs GDP / Stock-Markets / Derivatives
By: John_Mauldin
By Grant Williams
On January 29, 1845, the New York Evening Mirror published a poem that would go on to be one of the most celebrated narrative poems ever penned.
It depicted a tragic romantic's desperate descent into madness over the loss of his love; and it made its author, Edgar Allan Poe, one of the most feted poets of his time.
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Tuesday, December 10, 2013
How the Masters of the Financial Universe Use Derivatives for Fun and Profit / Stock-Markets / Derivatives
By: Money_Morning
Shah Gilani writes: Jon Stewart just did a very funny piece on “The Daily Show” about a new derivatives dust-up that Bloomberg news broke.
Earlier this year, a big Wall Street firm bought a credit default swap on debt that a private company owed to a third party. So the firm was set up to make money if that company missed any payments. Then the firm offered the company a multi-million-dollar loan… with the condition that they would miss a payment on the other loan. They did. And the Wall Street firm walked away with a $15 million insurance payment.
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Thursday, September 19, 2013
Financial Armageddon Looting Machine: Looming Mass Destruction from Derivatives / Stock-Markets / Derivatives
By: Ellen_Brown
Five years after the financial collapse precipitated by the Lehman Brothers bankruptcy on September 15, 2008, the risk of another full-blown financial panic is still looming large, despite the Dodd Frank legislation designed to contain it. As noted in a recent Reuters article, the risk has just moved into the shadows:
Read full article... Read full article...[B]anks are pulling back their balance sheets from the fringes of the credit markets, with more and more risk being driven to unregulated lenders that comprise the $60 trillion “shadow-banking” sector.
Thursday, September 19, 2013
Derivatives, The Gift That Keeps On Taking / Stock-Markets / Derivatives
By: Raul_I_Meijer
If there's one lesson to be drawn from the Federal Reserve's non-taper decision yesterday, September 18, it's that the Fed will continue to ignore the interests of the real economy, even if that's what's supposed to be its task and mandate. The Federal Reserve is part of the financial system, and as such it represents the interests of that system, not the people in the street. It will do whatever benefits the former, and whichever choices it makes will always drain ever more resources away from the latter.
Wednesday, October 17, 2012
Derivative Meltdown and U.S. Dollar Collapse / Stock-Markets / Derivatives
By: BATR
The frightening prospects from a derivative meltdown, well known for years, seem to deepen with every measure to prop up a failing international financial system. The essay Greed is Good, but Derivatives are Better, characterizes the gamble game in this fashion:
"The elegance of derivatives is that the rules that defy nature are not involved in intangible swaps. The basic value in the payment from the risk is always dumped on the back of the taxpayer. Ponzi schemes are legal when government croupiers spin loaded balls on their fudged roulette tables."
Thursday, October 04, 2012
Financial Fukushima: US Big Bank Derivative Bets Double in Six Years To $236 Trillion / Stock-Markets / Derivatives
By: Jesse
Well, the derivatives market is like Fukushima Daiichi before it failed and melted down, when the utility company and the Japanese government were blithely assuring themselves and everyone else that nothing could go wrong. Just as Greenspan and other very important people said nothing could go wrong with the US housing market and the wholesale collateralization of debt. Nothing to see here, move along.
Thursday, March 15, 2012
Currency Wars: Are American Derivatives Dealers Leaving Europe? / Stock-Markets / Derivatives
By: Jesse
Or possibly being invited to leave?
It is probably nothing, but I could not help but notice that Mr. Greg Smith, who has famously resigned from Goldman Sachs and company, was "an executive director and head of the firm’s United States equity derivatives business in Europe, the Middle East and Africa."
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Friday, January 13, 2012
U.S. Dollar Centric Derivatives Complex Progenitor of Parasitic Ponzi Price-Fixing / Stock-Markets / Derivatives
By: Rob_Kirby
The term “derivative” has become a dirty, if not evil word. So much of what ails our global financial system has been laid-at-the-feet of this misunderstood, mischaracterized term – derivatives. The purpose of this paper is to outline the origin, growth and ultimately the corruption of the derivatives market – and explain how something originally designed to provide economic utility has morphed into a tool of abusive, manipulative economic tyranny.
Wednesday, October 12, 2011
$600 Trillion Derivatives Time Bomb That's Set to Explode / Stock-Markets / Derivatives
By: Money_Morning
Keith Fitz-Gerald writes:
Do you want to know the real reason banks aren't lending and the PIIGS have control of the barnyard in Europe?
It's because risk in the $600 trillion derivatives market isn't evening out. To the contrary, it's growing increasingly concentrated among a select few banks, especially here in the United States.
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Friday, July 01, 2011
Derivatives: A Capital Markets Gong Show For Whom The Bell Tolls / Stock-Markets / Derivatives
By: Rob_Kirby
Back in early March, 2011 – PIMCO’s Bill Gross were calling for much higher rates and telling the world that they were selling U.S. Government Bonds.
PIMCO's Bill Gross Says to Sell U.S. Treasuries Now
03/03/2011
……To wit, he predicts that when the Fed’s QE2 bond-buying binge ends at the end of June, there will be nobody to take the Fed’s place as last-resort buyer of U.S. Treasuries at artificially low rates. Treasury yields will need to ramp up sharply by 1.5 percentage points to attract private buyers. Given that the ten-year U.S. Treasury is currently yielding only 3.5%, a 1.5 percentage point jump would equal a 43% increase in interest rates (1.5/3.5). That’s a big move in interest-rate land and would have a significantly negative effect on bond prices.
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Monday, June 06, 2011
The 0.6 Quadrillion Dollar Systemic Risk? Global OTC Derivatives Counterparty Risk / Stock-Markets / Derivatives
By: DK_Matai
Remember the 0.6 quadrillion dollar problem* ATCA flagged a few years ago in regard to counterparty risk? Guess what, it is still there! The $600 trillion global Over-The-Counter (OTC) derivatives market is still broadly unregulated although a number of new rules for privately traded swaps -- the biggest part of that $600,000 billion dollars -- have been proposed by the two US derivatives regulators:
Tuesday, May 24, 2011
Death Derivatives: How Wall Street Plans to Profit From Your Death / Stock-Markets / Derivatives
By: Money_Morning
Keith Fitz-Gerald writes:
I just spotted the next global "black swan."
But I think it actually looks like a giant Pteranodon.
I'm talking about so-called "death derivatives."
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Sunday, December 26, 2010
The Derivatives Monster That's 9X Bigger than the Global Economy / Stock-Markets / Derivatives
By: Richard_Daughty
I assume that you, as an intelligent person who understands that the treacherous, greedy, vampire banks creating so much excess money means We’re Freaking Doomed (WFD), are Up To Your Freaking Ears (UTYFE) in gold, silver and oil, and you have had it UTYFE with your family always complaining about how you spend all the family’s income on gold, silver and oil instead of luxuries, family vacations, adequate food, clothing, medical care, dental care, blah blah blah, the list goes on and on.
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Monday, August 09, 2010
The Horrific Derivatives Bubble That Could Destroy Entire World Financial System / Stock-Markets / Derivatives
By: Pravda
Michael Snyder writes: Today there is a horrific derivatives bubble that threatens to destroy not only the U.S. economy but the entire world financial system as well, but unfortunately the vast majority of people do not understand it. When you say the word "derivatives" to most Americans, they have no idea what you are talking about. In fact, even most members of the U.S. Congress don't really seem to understand them. But you don't have to get into all the technicalities to understand the bigger picture. Read full article... Read full article...
Tuesday, June 29, 2010
Derivative Monster Alive and Kicking Despite Financial Reforms / Stock-Markets / Derivatives
By: Martin_D_Weiss
Anyone who thinks the new financial reform law will save us from the next debt disaster must be dreaming. Here are the facts …
Fact: The U.S. derivatives that helped cause the last debt crisis are merely being shifted around like deck chairs on the Titanic.
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