WSJ CLAIMS DERIVATIVES BEAST DOESN’T EXIST!

[Joanne98]

As the US ‘rescue’ adds more and more trillions to our national debt every hour of every day, there is a continuing push to pretend the Derivatives Beast is NOT at the bottom of this at all. Oh, not at all! Why, the ONLY market that seems to be ‘orderly’ these days is the hyper-secretive, dark, smelly, ugly little gnome deal making with each other in public. This is sort of like using an outhouse rather than a bank to process wealth. Remember, Dr. Freud told us that defecation is intimately connected to wealth accumulations emotions.

A dear reader sent me the Wall Street Journal’s latest Murdoch Report:


When Even Good News Worsens a Panic - WSJ.com

From the start of the credit crisis, panic has been caused by what we didn’t know. What happens if a Lehman Brothers is allowed to fail? What happens if toxic mortgage-backed securities are bought through a government bailout? Then, what happens if the Treasury decides not to bail the banks out of these bad debts?

So it should have been reassuring that one of the most nerve-racking of the unknowns turned out to be benign.

We now know that we should not have feared huge losses in the multitrillion-dollar, unregulated market for esoteric instruments called credit default swaps. Transactions in this market have been orderly, and the losses have been modest.
And what is this ‘good news’ that has that old devil, Murdoch, chortling in his cups of hot toddy today? Why, the Derivatives Swap Markets that are NOT based on ‘mark to market’ but rather, on totally false premises, is ‘working’! Wow. Could have fooled me. Except I don’t go to gnomes, especially very old and extremely ugly gnomes, for financial advice.

http://emsnews2.wordpress.com/2008/11/26/wsj-claims-derivatives-beast-doesnt-exist/

[pansypoo53219]

1. my Fux/dittohead brother said

the poor people and fanny mae/freedy mac created this mess. so it's clintons fault. i think i got the warning on derivatives from my washington monthly in the 90's.