The Derivatives Beast Is Still Destroying World Banking

[Joanne98]

Goldman Sachs and JPM are playing a bizarre game called ‘proprietary trading’ whereby they trade with themselves. This sort of market masturbation is causing their stocks to rise even as it produces absolutely nothing at all, in the real world. The Justice Department is now investigating them. I hope all the guys doing this are arrested and housed with their buddy, Madoff.
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As always, the Derivative Beast may have temporarily ceased growing rapidly in size but it still dwarfs all other financial systems. And nothing, absolutely nothing has been done to fix it or kill it:

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Mobius Says Derivatives, Stimulus to Spark New Crisis (Update2) – Bloomberg.com


A new financial crisis will develop from the failure to effectively regulate derivatives and the extra global liquidity from stimulus spending, Templeton Asset Management Ltd.’s Mark Mobius said.

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“Political pressure from investment banks and all the people that make money in derivatives” will prevent adequate regulation, said Mobius, who oversees $25 billion as executive chairman of Templeton in Singapore. “Definitely we’re going to have another crisis coming down,” he said in a phone interview from Istanbul on July 13.

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Derivatives contributed to almost $1.5 trillion in writedowns and losses at the world’s biggest banks, brokers and insurers since the start of 2007, according to data compiled by Bloomberg. Global share markets lost almost half their value last year, shedding $28.7 trillion as investors became risk averse amid a global recession.

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The U.S. Justice Department is investigating the market for credit-default swaps, Markit Group Ltd., the data provider majority-owned by Wall Street’s largest banks, said July 13.


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Before talking about the investigation of Markit, we should first understand what this ‘global share market’ is so we can understand what is going on here. Namely, why do all these guys playing in the global share markets so worried about inflation? And what exactly is ‘global share markets’? We look at the figures here and think, ‘Wow, all that lost money!’ But has it really vanished? Or has it moved elsewhere?

http://emsnews.wordpress.com/2009/07/15/the-derivatives-beast-is-still-destroying-world-banking/

[sam sarrha]

1. there should be a 99.9% "Non-Value Added Tax" an all stock trades, that is how they stratify society

1% owns 0ver 80% of the Wealth, that is why we have the prison system we do, etc etc they Loot us to death