The Size Of The Derivatives Bubble Hanging Over The Global Economy Hits A Record High By Michael Snyder

27 May 2014 — WashingtonsBlog

The global derivatives bubble is now 20 percent bigger than it was just before the last great financial crisis struck in 2008.  It is a financial bubble far larger than anything the world has ever seen, and when it finally bursts it is going to be a complete and utter nightmare for the financial system of the planet.  According to the Bank for International Settlements, the total notional value of derivatives contracts around the world has ballooned to an astounding 710 trillion dollars ($710,000,000,000,000). 

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The Global Banking Game Is Rigged, and the FDIC Is Suing By Ellen Brown

13 April 2014 — Global Research

Taxpayers are paying billions of dollars for a swindle pulled off by the world’s biggest banks, using a form of derivative called interest-rate swaps; and the Federal Deposit Insurance Corporation has now joined a chorus of litigants suing over it. According to an SEIU report:

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Goldman Sachs Sued for Selling Libya Billions in Worthless Options By Richard Smallteacher

31 January 2014 — Corpwatch Holding Corporations Accountable

Goldman Sachs, the Wall Street investment bank, is being sued in London for selling Libya “worthless” derivatives trades in 2008 that the country’s financial managers did not understand. Libya says it lost approximately $1.2 billion on the deals, while Goldman made $350 million.

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Larry Summers and the Secret “End-Game” Memo By Greg Palast

22 August 2013 — Vice Magazine

When a little birdie dropped the End Game memo through my window, its content was so explosive, so sick and plain evil, I just couldn’t believe it. 
 
The Memo confirmed every conspiracy freak’s fantasy:  that in the late 1990s, the top US Treasury officials secretly conspired with a small cabal of banker big-shots to rip apart financial regulation across the planet.  When you see 26.3% unemployment in Spain, desperation and hunger in Greece, riots in Indonesia and Detroit in bankruptcy, go back to this End Game memo, the genesis of the blood and tears.
 
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My Big Fat Greek Minister By Greg Palast

20 May 2013 — Vice Magazine

It wasn’t too difficult picking out the Fat Bastard in the crowd of Russian models, craven moochers and media mavens. Besides, Fat Bastard and I were both desperate for coffee and heading for the same empty urn.

(We’d both signed on for Kazakhstan’s annual Eurasia Media Forum, a kind of Burning Man festival for Eastern oilgarchs and their media camp followers.)

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It Can Happen Here: The Confiscation Scheme Planned for US and UK Depositors By Ellen Brown

28 March, 2013– webofdebt

Confiscating the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone “troika” officials scrambling to salvage their balance sheets. A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here; and that the result will be to deliver clear title to the banks of depositor funds.

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Video: LIBOR Scandal More Than Fraud – Whole Game is Rigged

15 February 2013 — The Real News Network

 

Costas Lapavitsas: From multimillion dollar losses by cities like Baltimore to pension fund losses and much more, the LIBOR interest rate scandal shows that such mechanisms must be taken out of the hands of banks and be run in public interest (inc. transcript)

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Ellen Brown: How Greece Could Take Down Wall Street

21 February 2012 — Web of DebtGlobal Research

In an article titled “Still No End to ‘Too Big to Fail,’” William Greider wrote in The Nation on February 15th:

Financial market cynics have assumed all along that Dodd-Frank did not end “too big to fail” but instead created a charmed circle of protected banks labeled “systemically important” that will not be allowed to fail, no matter how badly they behave.

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The Wolf Report: Smackdown: Mr. MBS battles Mr. QE2

8 June 2011 — The Wolf Report: Nonconfidential analysis for the anti-investor

Doctor Derivative looked good in the blue and silver spandex leotard he did, this son of New York, this brash, brawling, battling banker. He bowed a bit to the crowd, blew a kiss to a loved one, flexed first one bicep then the other. Jamie Dimon took the measure of his opponent.

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How Financial Brokers Became Bookies: The Insidious Transformation of Markets Into Casinos By Ellen Brown

13 July, 2010 — Global ResearchWeb of Debt – 2010-07-12

“You all are the house, you’re the bookie. [Your clients] are booking their bets with you. I don’t know why we need to dress it up. It’s a bet.”
Senator Claire McCaskill, Senate Subcommittee on Investigations, investigating Goldman Sachs (Washington Post, April 27, 2010)

Ever since December 2008, the Federal Reserve has held short-term interest rates near zero. This was not only to try to stimulate the housing and credit markets but also to allow the federal government to increase its debt levels without increasing the interest tab picked up by the taxpayers. The total public U.S. debt increased by nearly 50% from 2006 to the end of 2009 (from about $8.5 trillion to $12.3 trillion), but the interest bill on the debt actually dropped (from $406 billion to $383 billion), because of this reduction in interest rates.

One of the dire unintended consequences of that maneuver, however, was that municipal governments across the country have been saddled with very costly bad derivatives bets. They were persuaded by their Wall Street advisers to buy credit default swaps to protect their loans against interest rates shooting up. Instead, rates proceeded to drop through the floor, a wholly unforeseeable and unnatural market condition caused by rate manipulations by the Fed. Instead of the banks bearing the losses in return for premiums paid by municipal governments, the governments have had to pay massive sums to the banks – to the point of bankrupting at least one city (Montgomery, Alabama).

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