95 pc hold Derivatives

95 percent hold dericatives and don't even realize it...nor the fact that these are extremely dangerous financial instruments

derivatives-markets-relative-to-real-economy-aug-2011Many are invested in DERIVATIVES and don't even realize it. Even worse is that they are unaware that they are sitting on top of a Financial Nuclear Bomb.

Being invested in DERIVATIVES is making a bet against a market maker which has almost unlimited funds and KNOW what the market is like because he/she's keeping the books. "interest rate swaps" and "credit default swaps" are the two largest and most-important forms of this gambling. An interest rate swap is a bet between a banker (i.e. the people who control interest rates) and You, on which direction an interest rate will move.

No one "understands" derivatives but most investors have some. Derivatives are bets. Period. That's all they ever were. That's all they ever can be.

If you place bets on the direction of interest rates against the criminals who control those interest rates, you're probably going to lose on those bets, almost all of the time. To really understand "the derivatives market" as a whole requires understanding exactly what it is: history's largest book-making operation (i.e. bookies). This is all that this rigged casino has ever represented: bookies taking bets. Here readers also need to understand how a bookie's "market" operates.

derivatives pic

The gambling itself moves the market. Bookies take bets according to "odds", the prevailing gambling-ratio for that particular bet, or the price it costs to place that bet. But these odds change over time. How do they change? They change based on the amount of money placed on each side of the bet. When more money is placed on one side of the bet, the price to place the bet (on one side) declines, while the price to place the bet on the other side rises. As only the bookmaker (bank) knows how the ratio is, they by definition always end up being the winner and they take it all....

A credit default swap is a bet placed on the odds that a particular nation (or corporation) will default on its debt.

"credit default swaps" brings us to a second, and even more financially destructive form of illegal gambling:  A credit default swap is a bet placed on the odds that a particular nation (or corporation) will default on its debt. What do we already know about book-making operations and "odds"? By massively piling your bets on one side of the ledger or the other, you move the market itself. How does this enable these financial terrorists to destroy the economies of nations? Simple - What happens any/every time the banksters use their massive betting in the CDS market to "change the odds", and thus move the market itself? The scam then moves onto the next tag-team partner: the Mainstream media.

The Mainstream media reports that the "odds" of a particular nation defaulting have suddenly soared or plunged. Does this mean anything? No, it means nothing at all other than the bets on one side have suddenly gotten extremely lop-sided. But that's not what the Corporate media says.

What these stooges report is that the "risk" of a particular nation defaulting has suddenly soared or plunged. This is not the same thing. The "risk" that a nation will default is based upon the economic fundamentals of that nation - and not based merely upon the gigantic bets of known criminals. However this media lie is then passed along to the next tag-team partner in this fraud/crime: the ratings agencies. And based upon the (supposed) "change in risk" - where nothing has "changed" at all except the bankers' gambling - the credit rating agencies then assign higher or lower ratings, based upon the bankers' original fraud in the derivatives market.

When these "official" ratings agencies change their "official" ratings, nations must pay either more interest or less interest on their debts.

Note: Using manipulation of the credit default swap market (and the lies of their accomplices), the banking crime syndicate drove the interest rate on Greek debt as high as 30%.

This brings us to a "gold derivative" , a bet on the direction in which the price of gold will move. Likewise we have silver, copper, coal,...derivatives.

The precise form of the bet is irrelevant. What is relevant is that merely through this crime syndicate placing its multi-trillion dollar bets in its own, rigged casino, these bets "influence" the corrupt markets of our 'real' world.


 click here for more about DERIVATIVES in the Education Hall....



Categories: Credit Default Swaps, CDO Subprime, News, Derivatives

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