[Reader-list] Derivative Problem

[A. Mani]

>From http://www.globalresearch.ca/index.php?context=va&aid=25089
Also see :
http://blogs.forbes.com/greatspeculations/2011/06/01/the-next-financial-crisis-will-be-hellish-and-its-on-its-way
http://biz.thestar.com.my/news/story.asp?file=/2011/6/1/business/8805487&sec=business
_________________________________________________________________

The greatest depression in human history is still in its starting
stages. What the media and many officials often refer to as the
"hangover" from the global financial crisis is in fact the end of the
beginning. Originating in 2008, the global economic crisis took the
world by storm: banks collapsed, the "too big to fail" became bigger
by consolidating the rest, governments bailed out their financial
industries, masses of people lost their jobs, the 'developing' world
was plunged into a deep systemic crisis, food prices rose, which in
time spurred social unrest; and the Western nations that took on the
bad debts of the big banks are on the precipice of a great global debt
crisis, originating in Europe, hitting Greece and Spain, but destined
to consume the industrialized world itself. Though many claim that we
are in a "recovery," things could not be further from the truth.

As the mainstream media is finally catching on to the reality of the
mirage of the so-called "recovery", reports are surfacing about a dire
global economic situation:

"Evidence of a deterioration of global manufacturing growth and
renewed weakness in job creation in the United States emerged
Wednesday, two reversals that have markets bracing for an economic
pause, or worse... Add to that a daunting list of aggravating factors:
the continued implosion of the U.S. housing market, an outbreak of
worldwide risk aversion, high crude-oil and gas prices pinching
consumer demand, further tightening in China and other emerging-market
economies, stock market losses, lack of credit growth, the looming end
to the Fed’s monetary stimulus, weak business capital spending, and
the still-unfolding sovereign debt crisis in Europe."

And now top financial experts are warning of a new financial crisis
altogether, since the monstrous derivatives market that played such a
nefarious role in the preceding crisis has not been altered, nor have
its systemic risks been addressed. The derivatives market -
essentially a fictional electronic market of high-stakes gambling -
has a value ten times that of the entire global gross national product
of the world's countries combined. This market is dominated by hedge
funds and the "too big to fail" banks, who in fact created the
derivatives trading schemes. As one leading hedge fund manager
recently stated, "There is definitely going to be another financial
crisis around the corner... because we haven’t solved any of the
things that caused the previous crisis." The market for derivatives is
somewhere in the realm of $600 trillion. ....

Read more at  http://www.globalresearch.ca/index.php?context=va&aid=25089

___________________________________________________________________________________


Best

A. Mani




-- 
A. Mani
ASL, CLC,  AMS, CMS
http://www.logicamani.co.cc