Reply #4: For most people [View All]

[Turbineguy]

The financial system they use (checking, savings, credit cards mortgages and car loans) worked just fine (not perfect, certainly room for improvement, but good enough) prior to the 1999 deregulation.

Sending the world back several hundred years will not turn out well.

Most of the problems as they are now has a basis in derivatives as well as a bloated financial industry. There are some relatively simple things that have already been suggested with derivatives, like only those with skin in the game can trade them (airlines hedging against rising fuel prices, farmers in wheat etc).

People who do this financial voodoo do so because it is profitable (that is: puts the cost on someone else) and it's allowed by government. The reality is that most of these derivatives are worthless anyway by virtue of the fact that there isn't enough money to cover them. The value of the derivatives cannot be greater than the value that underpins them.

Do people that hold these derivatives think only they will get paid but nobody else? Like the signs says: "We cheat the others and pass the savings on to you!"