The Coming Derivatives Crisis That Could Destroy The Entire Global Financial System

Posted by lost_and_found on Oct 25, 2011

Economy

Over the past couple of decades, the derivatives market has multiplied in size. Everything is going to be fine as long as the system stays in balance. But once it gets out of balance we could witness a string of financial crashes that no government on earth will be able to fix.

The amount of money that we are talking about is absolutely staggering. Graham Summers of Phoenix Capital Research estimates that the notional value of the global derivatives market is $1.4 quadrillion, and in an article for Seeking Alpha he tried to put that number into perspective....

If you add up the value of every stock on the planet, the entire market capitalization would be about $36 trillion. If you do the same process for bonds, you’d get a market capitalization of roughly $72 trillion.

The notional value of the derivative market is roughly $1.4 QUADRILLION.

I realize that number sounds like something out of Looney tunes, so I’ll try to put it into perspective.

$1.4 Quadrillion is roughly:

-40 TIMES THE WORLD’S STOCK MARKET.

Read the Full Article:
http://theeconomiccollapseblog.com/...
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lost_and_found's analysis:
Then the gods of the market tumbled, and their smooth-tongued wizards withdrew, And the hearts of the meanest were humbled and began to believe it was true That all is not gold that glitters, and two and two make four, And the gods of the copybook heading limped up to explain it once more. -Rudyard Kipling

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Shama-Shamar-Kaiya

Joined: 07/11/2011

Posts: 830

Our God is a Consuming Fire...Heb 12:27-29

Tue, 10/25/2011 - 17:39

Just another form of gambling / false overhead...? Interesting that "derivatives" / side betting on future conditions is one of the most contributing factors to high prices world wide...

Heb 12:27-28...Now this expression, Yet once more indicates the final removal and transformation of all (that can be) shaken -- that is of that which has been created / manipulated / poieo -- in order that what cannot be shaken may remain and continue. Psa 102:26

Abdicate

Joined: 04/25/2011

Posts: 792

A Prophecy: Glory to God

Tue, 10/25/2011 - 19:31

A Prophecy: Glory to God Almighty El Shaddai

Psalms 111:1-10 (KJV) Praise ye the LORD. I will praise the LORD with my whole heart, in the assembly of the upright, and in the congregation. The works of the LORD are great, sought out of all them that have pleasure therein. His work is honourable and glorious: and his righteousness endureth for ever. He hath made his wonderful works to be remembered: the LORD is gracious and full of compassion. He hath given meat unto them that fear him: he will ever be mindful of his covenant. He hath shewed his people the power of his works, that he may give them the heritage of the heathen. The works of his hands are verity and judgment; all his commandments are sure. They stand fast for ever and ever, and are done in truth and uprightness. He sent redemption unto his people: he hath commanded his covenant for ever: holy and reverend is his name. The fear of the LORD is the beginning of wisdom: a good understanding have all they that do his commandments: his praise endureth for ever.

lost_and_found

Joined: 05/05/2011

Posts: 1467

Abdicate and Shama

Tue, 10/25/2011 - 20:22

Amen to you both, I was not trying to detract with Rudyard's poem but since it was written in 1919 just shows that this isn't the first time greed has overtaken us.