{"id":13128,"date":"2023-01-06T09:01:06","date_gmt":"2023-01-06T09:01:06","guid":{"rendered":"https:\/\/buy-gold-bullion.expresspage.net\/?p=13128"},"modified":"2023-01-06T09:01:39","modified_gmt":"2023-01-06T09:01:39","slug":"derivatives-a-beginners-guide-to-financial-weapons-of-mass-destruction-2022-update","status":"publish","type":"post","link":"https:\/\/expresspage.net\/derivatives-a-beginners-guide-to-financial-weapons-of-mass-destruction-2022-update\/","title":{"rendered":"Derivatives – a Beginner’s Guide to \u201cFinancial Weapons of Mass Destruction\u201d – 2022 Update"},"content":{"rendered":"
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Foll\nowing the 2009 monetary crisis, the term derivatives has actually been strongly embedded in todays lexicon. <\/p>\n\n\n\n
With the failure of Bear Stearns in 2008, and subsequent bailout of numerous other too huge too stop working banks, the term “acquired” was turning up all over. Then in 2012 we had JP Morgan’s $7 billion trading loss on credit derivatives in the news. <\/p>\n\n\n\n
In 2019 there was still a lot of conversation over Deutsche Banks acquired portfolio and the threats this put on the international monetary system. With great factor too. Here’s a terrific summary from Wall Street on Parade: <\/p>\n\n\n\n
The great void surrounding derivatives is simply as dark today as it remained in 2008– and simply as unsafe. The Financial Crisis Questions Commission had this to state about the crash: “the presence of countless derivatives agreements of all types in between systemically crucial banks– hidden and unidentified in this uncontrolled market– contributed to unpredictability and intensified panic, assisting to speed up federal government support to those organizations.” There is not one Federal or state regulator today who might inform you which counterparty has the most focused danger to derivatives. Nor exists one Wall Street bank who has clearness on this concern– since most of the non-prescription acquired agreements are secret agreements in between one celebration and another.<\/p>
We understand that Deutsche Bank’s acquired arms extend into the majority of the significant Wall Street banks. According to a 2016 report from the International Monetary Fund (IMF), Deutsche Bank is greatly adjoined economically to JPMorgan Chase, Citigroup, Goldman Sachs, Morgan Stanley and Bank of America along with other mega banks in Europe. The IMF concluded that Deutsche Bank postured a higher risk to international monetary stability than any other bank as an outcome of these affiliations– which was when its market capitalization was 10s of billions of dollars bigger than it is today.<\/p>
Up until these mega banks are separated, till the Fed is changed by a skilled and major regulator of bank holding business, and till derivatives are limited to those that trade on a transparent exchange, the next legendary monetary crash is simply one counterparty blowup away.<\/p> Source.<\/cite><\/blockquote>\n\n\n