"Oh, my God! The banks have learned how to make MORE money by making us FAIL, than by helping us to succeed."

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"Oh, my God! The banks have learned how to make MORE money by making us FAIL, than by helping us to succeed."

Posted By: Susoni [Send E-Mail]
Date: Monday, 29-Jul-2013 18:05:04

The Meltdown: When I first learned of the monetary machinations of the derivatives market in 2004, "I said saw red" and said to myself: "O, my God! The banks have learned how to make MORE money by making us FAIL, than by helping us to succeed." No one believed me then...few people understand it now. *********** A historical perspective with Oxford University historian Niall Ferguson This link presents an interview with Professor Ferguson is a succinct historical perspective on modern economics. http://www.realecontv.com/videos/crashing-markets/the-meltdown-a-historial-perspective.html This interview is "essential viewing" for those who still don't understand the real nature of "The Derivatives Market," which (in my definition) is a special market scheme for trading amassed debts to be paid in future ... as if it were "real money" . The "derivative value" (-) can only become "real money" (+) if the debtor actually pays his debt (in future). Derivatives were a magical formula for banks to "realize" (i.e. make "real") a negative future value, debt, transforming it into "real" transferrable electronic money that they could use to buy, trade, invest and sell again and again in the real world financial markets today. Some of this debt was sold for use overnight by Asian banks to manipulate (at interest) to be restored the following day by repaying the overnight loan. In a sense, the international banking syndicate created a mythical "Golden Goose", which laid real financial world "Golden Eggs" (money borrowed by the banks from the Federal Reserve, using the derivatives as collateral). However, in seeking to maximize their immediate advantage, the greed of the bankers resulted in their imposition of more and more draconian interest rates/late fees on the debtor to maximize the current "value" of the derivative (-), digging a financial hole for each individual debtor so deep that the debtor would have little hope of ever climbing out of the financial hole. The same applied to Student Debt, which is also bundled into derivatives. When I first learned of the monetary machinations of the derivatives market in 2004, "I said saw red" and said to myself: "O, my God! The banks have learned how to make MORE money by making us FAIL, than by helping us to succeed." No one believed me then...few people understand it now. By maximizing our debt to the "Outer Limits," the banks could "trade" (borrow) from $10 to $40 on each dollar in the traunche (a derivative bundle) to use as real (electronic) money, which they redistributed into investments, many of which "tanked." In 2007, we discovered that Fanny Mae, one of the most notorious sources of derivatives, had also become a derivative investor, purchasing defaulted credit card debt through "3rd party fronts," buying debt collection companies, like Arrow Financial, Inc. to pursue/harass debtors through the civil court system. Fannie May would make loans that they knew could never be paid by low income borrowers (forced by the Clinton Administration), and then would "sik" Arrow Financial Inc. or other collection agency to collect the debt on which they had foreclosed (if real estate) or credit card debt, which they purchased at "pennies on the dollar" in trying to shore up their real estate losses. Click the link below to hear this "illuminating" interview with a real historian of Western Economic History. Mr. Ferguson's short dissertation on the financing of the Napoleonic Wars is a masterful description/revelation of how it was Nathan Rothschild, not necessarily Lord Wellington, who actually defeated Napoleon at the Battle of Waterloo. It was Rothschild who financed Wellington's campaign by establishing "The Bond Market." An analogy with the wars in Iraq and Afghanistan should not be lost on us. http://www.realecontv.com/videos/crashing-markets/the-meltdown-a-historial-perspective.html