https://www.theinteldrop.org/2024/02/18/how-to-diffuse-the-derivatives-time-bomb/ " How to Diffuse the Derivatives Time Bomb posted by INTEL-DROP February 18, 2024 Current laws allow the big international banks to run the largest derivatives casino that the world has ever seen. [...] South Dakota’s Innovative Solution The most readily achievable solution is probably that in a South Dakota bill filed on January 29. The bill is detailed in a February 2 article titled “You Could Lose Your Retirement Savings in the Next Financial Crash Unless Others Follow This State’s Lead,” which observes: …If your broker… were to go bankrupt, the broker’s secured creditors (the people to whom the broker owes money) would be empowered to take the investments that you paid for in order to settle outstanding debts…. To avoid a catastrophe in the future, a nationwide movement is desperately needed to alter the existing Uniform Commercial Code. Of course, that won’t be easy to accomplish, especially because bank lobbyists and other powerful financial interests will almost certainly fight kicking and screaming to stop policymakers from taking away their advantage over consumers. The good news is, this “great taking” can be stopped at the state level. Americans don’t need to count on a divided Congress to get the job done. Because the UCC is state law, state lawmakers can take concrete steps to restore the property rights of their constituents and protect them in the event of a financial crisis. On Monday, South Dakota legislators introduced a bill that would do just that. The legislation would ensure that individual investors have priority over securities held by brokerage firms and other intermediaries. It would also alter jurisdictional provisions so that cases are determined in the state of the individual investor, rather than the state of the broker, custodian, or clearing corporation. This would ensure that individual investors are able to rely on the laws of their local state. Hopefully, other states will follow South Dakota’s lead. Tennessee, for one, is reported to have such a bill in the works. [...] "
This news again?? Seriously... this was supposed to happen about 780,989 times already and hasn't...it never will. This has been mentioned so many times as the next possible crisis and end to the global financial system but no worries as it will never ever ever happen. So you can rest easily tonight and the rest of your life.
It's unclear to me what exactly you mean. The cited South Dakota bill was filed on January 29, ie. only 2 weeks ago, and the above news article was published yesterday. Please specify.
This news about the derivatives market becoming a crisis has been mentioned for over 20 yrs. I myself have been reading articles about this for nearly 2 decades. It's been talked about, analyzed and forever mentioned. Just walk away and forget it. Who cares about the South Dakota bill and when it was filed...doesn't make any difference. .....no one is losing anything. The fed..government and all top officials will bail out any amount of dollars needed to fix any problems. If it's going to take trillions, they will pay. There is no worry ....relax
@S2007S, it might be "clear" for you, but still no reason to try to silence others who want to discuss it. You are not forced to participate in the discussion. Please respect others and other people's opinions. We had enough of such destructive dictator idiots like destriero here making everybody, especially newcomers, down, with devastating results for the authors as well for ET...
Was the 2008 crisis not caused by derivatives? https://seekingalpha.com/article/198197-why-derivatives-caused-financial-crisis " Why Derivatives Caused Financial Crisis Apr. 12, 2010 4:16 AM ET Graham Summers [...] What caused the Crisis? Derivatives. [...] "
I'm not trying to silence anyone.....im just mentioning that this topic has been talked about before. Markets these days aren't bothered by anything, if they are it lasts a handful of weeks or months and then the rally resumes...as you can see every time we have a debt ceiling crisis they raise the debt ceiling even higher and stocks resume their rally. 34 trillion in US debt and the higher the trillions go the higher markets go. Banks have collapsed left and right, they got backed out and everything was forgotten about. Pandemic that closed down worldwide economies, they spend trillions and the markets resumed there upward trajectory. Today we have 7 stocks making up the entire market with 7 of these stocks being worth nearly half the US gdp. Everything is just too big too fail. They will not let the system collapse. They will print trillions and trillions and do anything possible to sustain a continue bull market for the next thousand years. ....
@S2007S, you are IMO not fair nor "honest", b/c you claimed the following, and I quoted an article from 2010 that clearly says the 2008 crisis was caused by derivatives. Do you want to comment on these discrepancies in views/opinions/facts?
Mechanically it was caused by derivatives but in reality it was poor risk management. Bear & Lehman had such poor risk management they didn't even realize their VaR (Value at Risk) model was going haywire due to mortgage defaults. Derivatives just leveraged their bets. The real problem was it was true bubble since the majority believed it from mortgage brokers, real estate professionals, MBS participants, appraisers and worst of all the CRAs (aka Moodys). The CRAs are the real criminals in this scenario since they rubber stamped MBS & CDO sales to institutions all over the world (Inside Job (2010) is good documentary that covers this). I am still amazed the US government didn't prosecute them using RICO since they fit the definition of a Mafia. The CEO of Moody's came to Capitol Hill and claimed their credit analysis was only an opinion and that it was covered by the free speech doctrine. What a joke. I'm pretty sure the only reason Moody's is still around is because of Warren Buffet who was a majority stakeholder.