I want to take out a derivative today.
I want to hedge my bets against my company failing.
So, I create a CDS. Not 'buy', create.
How do I pay for it?
Who is the counter party?
Who wants to bet against me?
I don't need anybody else. I just create a formula such that the opposite side
of the bet is ME. So, I have both sides on my balance sheets.
Unfortunately, this 'legal' stuff is complete and utter bullsh*t.There's no check on this, no taxes, no true risk, and no reserves to pay off a loss.
If this causes a failure, I get bailed out.
["That's a Lambourghini. Keep that one. 275 thou"]
That's sh*tty if you're a pension fund.
The banksters took all your money and
left you with nothing but worthless paper IOUs.
Government pension funds around the world have been hit.
Now that the Boomers are retiring, they will take the last of the money
and then, it's back to the 19th century for the rest of us.
Even though banksters have robbed us, the banking system will still
all come crashing down. Why?
Their theft was legal,
but it was not enough to cover their foney derivative paper losses.
can you say "13 Trillion dollars"?Even without that problem, palliated with OUR future tax money,
some think that the original sin, sub-prime loans will do them all in.
They're still falling in value.
I thought they were gone, but they're back, like hungry zombies.