Sunday, 8 July 2012

Derivatives! Derivatives!

Watching some news broadcasts would lead us to believe that the current financial disaster has been caused by the citizens running up too much personal debt! Although personal debt is on the high side and savings far too low, the truth is that the current financial crisis can be laid directly at the feet of Banks! The banks of the world, Canadian Banks included, involved themselves in finance-crippling derivative markets that have grown larger than all of the world’s economies combined!
At $400 Trillion dollars, all that the world’s leaders can hope to do is ‘Right the Bicycle’.  It will take a long time to grow out of this problem created by ‘Greed without Consequence’.
Niagara Winners Circle Report 2009, Page 4:
In a little book called ‘Charter of Greed’ written before 1995 by one of our NWC members, Preston Haskell called out the conduct of Canada’s Chartered Banks.
Considering the current financial calamity facing the world at this time Preston wrote, on page 13, “Too soon they {Banks} will no doubt treat us to yet another of their extraordinary displays of entrepreneurialism with their insightful gamble on derivatives”...
Another intuitive line can be found on page 17 of ‘Charter of Greed’ that states “As long as the markets will sustain our Bank’s derivative holdings our Banks will be successful”…
On page 64-65-66 Preston sounded the alarm, through news clippings and personal commentary, under the heading ‘Banks carry huge “derivative” risks...
In the ‘Charter of Greed’ Preston Haskell voiced his concern that the old trick of simply lowering the bank rate just might not spur on the economy. He believed that the Bank of Canada would try this tactic once too often and nothing would happen.
‘Charter of Greed’ points to Banks and Governments losing control like quicksilver through tightly clenched fists’.
Now, nearly 20 years late the wisenheimers of PBS are proud to tell you all about ‘Derivatives’:

Post script: Not one of the ‘Free’ world’s problems has been caused by an academic drop-out.

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