You work all year and what do you get? Debt!
Yea that's right ..you work year after year long and what do you get years older and DEEPER in debt. You say No. You have a home maybe more even rental property and a thrilling business. Well maybe you are the exception, but I double it.
/Politics News Articles/ - SAN FRANCISCO, CA, January 24, 2008 - You see, worldwide we are exchanging paper for goods and services (your labor) backed by debt or a promise to pay by more paper and ultimately your labor. For example: Derivatives which are in part defined as instruments whose value derives from some underlying asset. Examples include futures contracts, options etc. Also known as synthetics. What The Hell did you say? Synthetics? So you may ask what is the value of these DERIVATIVES/SYNTHETICS ..in the billions maybe a few trillions?
"ISDA reports that data collected from their own survey of derivatives markets shows that the amount of outstanding vanilla swaps grew (is that Synthetic vanilla?) by 25% during the first six months of 2003. The growth rate of all interest rate derivatives, which includes single-currency interest rate swaps, cross-currency interest rate swaps and interest rate options, grew by 24% during the same period. The total outstanding amount of interest rate derivatives now totals $123.9 trillion (HOW MUCH!!!!in 2003 what is it now?) compared to $99.92 trillion at the end of 2002. By comparison, the BIS reported a figure of $106.29 trillion for the end of 2002. The difference might be attributed to how ISDA surveys only its members while BIS seeks to survey all derivatives dealers worldwide."
The Source for this information is found at: "Important New Data on Derivatives" Randall Dodd, Director Financial Policy Forum, September 25, 2003
Click here for the article. "Important New Data on Derivatives" http://www.financialpolicy.org/FPFSPB9.htm
The last paragraph states...
"The purpose of highlighting this new data is not to alarm but to raise awareness and understanding that these very large markets are growing at a very rapid pace. The data provides further proof that the regulation of financial market regulation by the Sarbanes-Oxley Act is not discouraging the use of derivatives to manage risk. The data also serves as a reminder that derivatives markets are, along with banking, securities and insurance, the pillars of the financial system." (Oh that is very reasuring)
For those doubting Toms out there rap your head around a further, wider definition:
"Derivatives are financial instruments whose value is derived from the value of something else. They generally take the form of contracts under which the parties agree to payments between them based upon the value of an underlying asset or other data at a particular point in time. The main types of derivatives are futures, forwards, options, and swaps.
The main use of derivatives is to reduce risk for one party while offering the potential for a high return (at increased risk) to another. The diverse range of potential underlying assets and payoff alternatives leads to a huge range of derivatives contracts available to be traded in the market. Derivatives can be based on different types of assets such as commodities, equities (stocks), bonds, interest rates, exchange rates, or indexes (such as a stock market index, consumer price index (CPI) — see inflation derivatives — or even an index of weather conditions, or other derivatives). Their performance can determine both the amount and the timing of the payoffs."
The source is... Wikipedia-Derivative" http://en.wikipedia.org/wiki/Derivative
Being a great fan of baseball here come stride three ..
Derivatives: Facts and Fallacies by Michael S. Rozeff
To worry or not to worry
Derivatives scare many people. They don't know what they are, or they may be quite unfamiliar with them. They don't know how they work, and it's not easy to learn. The amounts tossed around are fantastically huge. Most are traded behind the scenes. They are purchased in margin accounts, and this worries the untutored. Mysterious bankers, corporations, and dealers handle them mostly. Then there are the unnamed speculators and hedge funds. People worry about the financial system melting down. They worry about chains of bankruptcies. Sometimes there are big failures like Enron or Barings Bank or Orange County. People get scared. Regulation seems lax. Accounting for derivatives is tough and highly technical. Deciphering derivatives in footnotes of annual reports is unpleasant. People worry and worry, and there seem to be many reasons to worry. When they're not worrying, they're predicting disaster.
The worry is greatly overdone. Derivatives are worth some thought for investors, but they're a side show. They're the tail, not the dog. The tail won't wag the dog. They're worth some concern, but not too much. There are more important issues to worry about."
The source is at... Facts and Fallacies http://www.lewrockwell.com/rozeff/rozeff92.html
We have gotten to the point where I get on the soapbox and scream, pull what little hair I have left on my heard and tell you these institutions... all of them are the nuts ..evil nuts. The idea or concept of fiduciary responsibility is alien to this landscape of thieves.
The fiduciary duty is a legal relationship between two or more parties (most commonly a "fiduciary" or "trustee" and a "principal" or "beneficiary") that in English common law is arguably the most important concept within the portion of the legal system known as (the study/practice of fairness in economics) equity. In the United Kingdom, the Judicature Acts merged the courts of Equity (historically based in England's Court of Chancery) with the courts of common law, and as a result the concept of fiduciary duty also became usable in common law courts.
A fiduciary duty is the highest standard of care imposed at either equity or law. A fiduciary is expected to be extremely loyal to the person to whom they owe the duty (the "principal"): they must not put their personal interests before the duty, and must not profit from their position as a fiduciary, unless the principal consents. The fiduciary relationship is highlighted by good faith, loyalty and trust, and the word itself originally comes from the Latin fides, meaning faith, and fiducia.
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