The $516 trillion dollar derivative Ponzi scheme Wall Street ran

Thats' exactly where it all started, and exactly why there will be no prosecution. Fannie and Freddie selling bad mortgages. While it may be noble to get more folks into home ownership, doing it the wrong way causes the shitstorm we're in now. Wonder how much the pols made off of that over the years? THAT is where the problem is, wall street is just a supporting actor.

Also, the next thing the Occupiers will call for is Gov't intervention. Just watch.

Bullshit.

Men like Daniel Sedak were selling "bad" mortgages. And they were doing it for Financial firms like Goldman Sachs. Who were pushing volume so they could package them into securities and take out insurance against their failure from an outfit like AIG.

Quick Loan Funding And Daniel Sadek Emerge As “Pirate Swashbucklers” Of Subprime Mortgage Reign Of Deceptive Mortgage Lending; CitiGroup Provided Much Of The Support For His Pillaging « MORTGAGE PIRATES

It's amazing this crap is so misunderstood.

Just as you say that no innovation happens without the Gov't behind it, no financials are legally traded without gov't regulations allowing them. The guys on walllstreet just saw a way to make a fuck ton of money in the current system and did so. Greedy yes, legal, some yes some no. But pointing the finger at only wallstreet is what is bullshit.

Well yeah.

This falls into the Greenspan, the market will regulate itself, crapola. SEC was defunded during the Bush administration, and prior to that, Clinton signed into law a repeal of Glass-Steagall.

There was foolishness all around.

But what now? The Anti-regulation crowd are braying about regulations. It's nuts.
 
Yawn.

Chris, you headed to Occupy Wall Street?
Maybe he's already there on his iPad that Corporate America built that he loathes?

I do loathe the IPad.

It's a toy for children.

Funny, a shitload of surgeons, airline pilots, "scientists", writers, restaurateurs, directors of the finest hotels and top executives might disagree with you...... again. A toy, you have no idea how stupid you sound....... always.
 
Bullshit.

Men like Daniel Sedak were selling "bad" mortgages. And they were doing it for Financial firms like Goldman Sachs. Who were pushing volume so they could package them into securities and take out insurance against their failure from an outfit like AIG.

Quick Loan Funding And Daniel Sadek Emerge As “Pirate Swashbucklers” Of Subprime Mortgage Reign Of Deceptive Mortgage Lending; CitiGroup Provided Much Of The Support For His Pillaging « MORTGAGE PIRATES

It's amazing this crap is so misunderstood.

Just as you say that no innovation happens without the Gov't behind it, no financials are legally traded without gov't regulations allowing them. The guys on walllstreet just saw a way to make a fuck ton of money in the current system and did so. Greedy yes, legal, some yes some no. But pointing the finger at only wallstreet is what is bullshit.

Well yeah.

This falls into the Greenspan, the market will regulate itself, crapola. SEC was defunded during the Bush administration, and prior to that, Clinton signed into law a repeal of Glass-Steagall.

There was foolishness all around.

But what now? The Anti-regulation crowd are braying about regulations. It's nuts.

You are right.

It is nuts.

Business without regulation is the Mafia.....or Somalia.
 
Wall Street destroyed the economy with a $516 trillion dollar derivative Ponzi scheme.

You can read about it at this link...

A £516 trillion derivatives 'time-bomb' - Business News, Business - The Independent

Thank God someone is protesting about this, because it destroyed the world economy, and NO ONE WENT TO JAIL BECAUSE OF IT, AND THE MAIN STREAM MEDIA NEVER MENTIONS IT.

How is it a ponzi scheme?

It becomes a ponzi scheme if the money is no longer looked at in the long term for payment, and simply seen as a short term liability rather than a long term problem.

In business instead the focus is on paying the dividends whilst skimming the top. Sooner or later there is no top. Once that happens the created Ponzi structure falls.

In the government, there is simply no top since they are now in negative growth and paying more than they can afford for the health care all the whilst repackaging this debt along with other toxicities and selling it as future debt repayment. (another US creation).
 
I doubt anyone really knows the extent of the DERIVATIVES market or how, if things start to unravel, that unraveling will play out in that market, either.

After all, these are private bets between banks and finance companies that are not reported to anybody.

But given the interconnectedness of world finance, it is easy to see how a bankruptsy in one place can create an avalanche of financal woes and banks going bust the world over.

Hell that almost happened in 2008, folks.

The risk is, I suspect, still with us, much thanks to derivatives.
 
The market is worth more than $516 trillion, (£303 trillion), roughly 10 times the value of the entire world's output: it's been called the "ticking time-bomb".

It's a market in which the lead protagonists – typically aggressive, highly educated, and now wealthy young men – have flourished in the derivatives boom. But it's a market that is set to come to a crashing halt – the Great Unwind has begun.

Last week the beginning of the end started for many hedge funds with the combination of diving market values and worried investors pulling out their cash for safer climes.

Some of the world's biggest hedge funds – SAC Capital, Lone Pine and Tiger Global – all revealed they were sitting on double-digit losses this year. September's falls wiped out any profits made in the rest of the year. Polygon, once a darling of the London hedge fund circuit, last week said it was capping the basic salaries of its managers to £100,000 each. Not bad for the average punter but some way off the tens of millions plundered by these hotshots during the good times. But few will be shedding any tears.

The complex and opaque derivatives markets in which these hedge funds played has been dubbed the world's biggest black hole because they operate outside of the grasp of governments, tax inspectors and regulators. They operate in a parallel, shadow world to the rest of the banking system. They are private contracts between two companies or institutions which can't be controlled or properly assessed. In themselves derivative contracts are not dangerous, but if one of them should go wrong – the bad 2 per cent as it's been called – then it is the domino effect which could be so enormous and scary.

Most markets have something behind them. Central banks require reserves – something that backs up the transaction. But derivatives don't have anything – because they are not real money, but paper money. It is also impossible to establish their worth – the $516 trillion number is actually only a notional one. In the mid-Nineties, Nick Leeson lost Barings £1.3bn trading in derivatives, and the bank went bust. In 1998 hedge fund LTCM's $5bn loss nearly brought down the entire system. In fragile times like this, another LTCM could have catastrophic results.

A £516 trillion derivatives 'time-bomb' - Business News, Business - The Independent

You do realize the article is from 2008?
 
Wall Street destroyed the economy with a $516 trillion dollar derivative Ponzi scheme.

You can read about it at this link...

A £516 trillion derivatives 'time-bomb' - Business News, Business - The Independent

Thank God someone is protesting about this, because it destroyed the world economy, and NO ONE WENT TO JAIL BECAUSE OF IT, AND THE MAIN STREAM MEDIA NEVER MENTIONS IT.

How is it a ponzi scheme?

It becomes a ponzi scheme if the money is no longer looked at in the long term for payment, and simply seen as a short term liability rather than a long term problem.

In business instead the focus is on paying the dividends whilst skimming the top. Sooner or later there is no top. Once that happens the created Ponzi structure falls.

In the government, there is simply no top since they are now in negative growth and paying more than they can afford for the health care all the whilst repackaging this debt along with other toxicities and selling it as future debt repaymenth. (another US creation).

That is not strictly a ponzi scheme. A ponzi scheme requires people currently getting paid out to be paid by people putting the money in. Derivatives are not a pool of money, but one time contracts between to parties. Now in certain cases a single investor can operate as a ponzi schemer, and use his assets gained in this manner to buy derivatives, but the actual derivative market itself is not a true ponzi scheme.

People seem to be using the term ponzi scheme for any finiancial transaction they either A: Don't like, B: Dont understand, or C: Both.
 
Bullshit.

Men like Daniel Sedak were selling "bad" mortgages. And they were doing it for Financial firms like Goldman Sachs. Who were pushing volume so they could package them into securities and take out insurance against their failure from an outfit like AIG.

Quick Loan Funding And Daniel Sadek Emerge As “Pirate Swashbucklers” Of Subprime Mortgage Reign Of Deceptive Mortgage Lending; CitiGroup Provided Much Of The Support For His Pillaging « MORTGAGE PIRATES

It's amazing this crap is so misunderstood.

Just as you say that no innovation happens without the Gov't behind it, no financials are legally traded without gov't regulations allowing them. The guys on walllstreet just saw a way to make a fuck ton of money in the current system and did so. Greedy yes, legal, some yes some no. But pointing the finger at only wallstreet is what is bullshit.

Well yeah.

This falls into the Greenspan, the market will regulate itself, crapola. SEC was defunded during the Bush administration, and prior to that, Clinton signed into law a repeal of Glass-Steagall.

There was foolishness all around.

But what now? The Anti-regulation crowd are braying about regulations. It's nuts.

The bill Clinton signed had regulations in it that the Bush team did not impliment for nearly 7 years.

The bill was only partially implimented, you know the parts that gave the banksters EVERYTHING they wanted.
 
Bullshit.

Men like Daniel Sedak were selling "bad" mortgages. And they were doing it for Financial firms like Goldman Sachs. Who were pushing volume so they could package them into securities and take out insurance against their failure from an outfit like AIG.

Quick Loan Funding And Daniel Sadek Emerge As “Pirate Swashbucklers” Of Subprime Mortgage Reign Of Deceptive Mortgage Lending; CitiGroup Provided Much Of The Support For His Pillaging « MORTGAGE PIRATES

It's amazing this crap is so misunderstood.

Just as you say that no innovation happens without the Gov't behind it, no financials are legally traded without gov't regulations allowing them. The guys on walllstreet just saw a way to make a fuck ton of money in the current system and did so. Greedy yes, legal, some yes some no. But pointing the finger at only wallstreet is what is bullshit.

Well yeah.

This falls into the Greenspan, the market will regulate itself, crapola. SEC was defunded during the Bush administration, and prior to that, Clinton signed into law a repeal of Glass-Steagall.

There was foolishness all around.

But what now? The Anti-regulation crowd are braying about regulations. It's nuts.

The way I see it, it's comes down to regulations that aren't smart. Too little, or, as the current situation is (off wall street), too much regulation... both cause major issues. Too little and the greedy run wild. Too much and businesses can't operate without extra expenses, which they pass on via raising prices.
 
Wall Street destroyed the economy with a $516 trillion dollar derivative Ponzi scheme.

You can read about it at this link...

A £516 trillion derivatives 'time-bomb' - Business News, Business - The Independent

Thank God someone is protesting about this, because it destroyed the world economy, and NO ONE WENT TO JAIL BECAUSE OF IT, AND THE MAIN STREAM MEDIA NEVER MENTIONS IT.

It was Big Banks, Hedge Fund Managers, Securities Companies, AIG, Wall Street,
and the government deregulation/lack of oversight of the aforementioned that caused
the worst recession since the great depression. If misguided mouthpieces for the wealthy and wall street continue to propagandize, and the rest of us buy into it again, America will just repeat the same failed trickle down mistake :eusa_eh:
 
Wall Street destroyed the economy with a $516 trillion dollar derivative Ponzi scheme.

You can read about it at this link...

A £516 trillion derivatives 'time-bomb' - Business News, Business - The Independent

Thank God someone is protesting about this, because it destroyed the world economy, and NO ONE WENT TO JAIL BECAUSE OF IT, AND THE MAIN STREAM MEDIA NEVER MENTIONS IT.

It was Big Banks, Hedge Fund Managers, Securities Companies, AIG, Wall Street,
and the government deregulation/lack of oversight of the aforementioned that caused
the worst recession since the great depression. If misguided mouthpieces for the wealthy and wall street continue to propagandize, and the rest of us buy into it again, America will just repeat the same failed trickle down mistake :eusa_eh:

it was also the people whos income didnt rate a mortgage who got them anyway, it was all the levels of government that were taking in larger tax reciepts due to income, , increased property values,bonuses, and spending, it was middle class people jumping in on the real estate bandwagon, becoming brokers, mortgage adjusters, even flipping houses on the side.

Everyone was making money. There were no losers during the real estate boom, thats why everyone, from the person buying a house they couldnt afford, to the $45k a year office manager doing real estate on the side and seeing $15k in commissions a month, to the local city council, seeing increased property taxes via inflated property values, all the way up to the brokers making shitloads on comissions, and the CEO's of the invenstment banks seeing thier stock go through the roof due to high leveraging, and the assumtion that property values can only go up.

EVERYONE is to blame for 2008, cause everyone was in on it.
 
Wall Street destroyed the economy with a $516 trillion dollar derivative Ponzi scheme.

You can read about it at this link...

A £516 trillion derivatives 'time-bomb' - Business News, Business - The Independent

Thank God someone is protesting about this, because it destroyed the world economy, and NO ONE WENT TO JAIL BECAUSE OF IT, AND THE MAIN STREAM MEDIA NEVER MENTIONS IT.

when obiedoodle was senator he voted to bail them out.. yes him did.
That is when he wasn't engaged in campaigning (which he hasn't stopped doing)...
 
Wall Street destroyed the economy with a $516 trillion dollar derivative Ponzi scheme.

You can read about it at this link...

A £516 trillion derivatives 'time-bomb' - Business News, Business - The Independent

Thank God someone is protesting about this, because it destroyed the world economy, and NO ONE WENT TO JAIL BECAUSE OF IT, AND THE MAIN STREAM MEDIA NEVER MENTIONS IT.

when obiedoodle was senator he voted to bail them out.. yes him did.

So what?

It needed to be done at that point.

Now we need to enforce the Wall Street reforms and vote out Wall Street's puppets in the Republican Party.
 

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