| feb 18 2009 | | Derivatives. | (Bloomberg) — Treasury Secretary Timothy Geithner pledged government financing for as much as $2 trillion of efforts to spur new lending and address banks’ toxic assets, seeking to end the credit crunch hobbling the economy.
(Bloomberg) – Intercontinental Exchange Inc.’s planned clearinghouse for the $28 trillion credit-default swap market is stalled over pricing on less frequently traded contracts, Chief Executive Officer Jeff Sprecher said.
http://www.bloomberg.com/apps/news?pid=20601087&sid=ajj6I1iqF1UQ&refer=home
This has to get worse, it's only human nature to claw your way into a position of power and then go for greed.
The Bank of International Settlements last year estimated the turnover in just the exchange and interest rates derivatives markets at $2.4 Trillion a day.
Total derivatives market as of September 2008 $455 Trillion, probably more like $600 Trillion now. Do see the problem here? Throwing $700 billion at the hole won't fill it, won't fix it.
And now countries are going bust and economic zones like the Eurozone are threatened. And no one knows how to fix it.
http://www.telegraph.co.uk/finance/4682554/Gold-hits-record-against-euro-on-fear-of-Zimbabwean-style-response-to-bank-crisis.html
Buy gold.
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