Apart from the vicarious joy of watching one Wall Street bankster suing another, the story seemed to lack a great deal of relevance – given that the amount of the suit (a mere $245 million) is nothing more than “pocket change” in a derivatives market recently valued at over$1 quadrillion($1,000,000,000,000,000). Put another way, the derivatives market was/is 4milliontimes the size of the damages sought after in this suit. However, sifting through the limited details available provides some sobering insights.
This is further support for the assertion byThe Telegraph'sAmbrose Pritchard-Evans (and others) that Wall Street's claim of only relatively minor “net exposures” in this bankster-casino is nothing but hollow rhetoric (see“A Derivatives Myth Exposed”) . With capital-cushions which aremicroscopicin comparison to the total size of the derivatives market, and with the pay-outs required byindividualgamblers in this market leveraged to such extremes, it is a mathematical certainty that this entire marketmustimplode if specific performance is required on just a tiny portion of these contracts/bets.
Despite claims by the Obama regime, and the continual reassurances from the media propagandists that the U.S. financial sector has been “saved” through re-inflating the financial sector bubble with $10trillionin hand-outs/loans/guarantees, therealityis that nothing has been fixed. Two other news items provide further context for this fact.
Two days ago,
Join us on our
Share this page with your friends
on your favorite social network: