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View Full Version : Economic: "I think you're correct that derivatives provide a market tool that is worthwhile."




Orangeish
02-06-2012, 10:10 AM
So I just recently watched the video where Ron Paul is criticizing Allen Greenspan for the Federal Reserve's flawed policies. Yet at one point (http://youtu.be/RTZVwZgH080?t=3m13s) during the questioning Ron Paul says: "And I'm not for more of this regulation by SEC. I think you're correct that derivatives provide a market tool that is worthwhile."

I'm just a tad confused, because I've always heard that Ron Paul has always mentioned them as being a bad idea. Am I mistaken?

malkusm
02-06-2012, 10:25 AM
Derivatives themselves are not bad. They are simply contract where one party takes on risk that another party wants to hedge against.

Mostly when Ron talks about derivatives, if you listen carefully, his issue is with the over-leveraging of these derivative contracts. 100:1 leveraging would not be possible without a system of credit and a monetary system to support it.

Seraphim
02-06-2012, 04:41 PM
The problem with the modern derivative market as created by the large investment banks is that they know they have the population - through their governments - by the testicules/ovaries...and issue the most insanely overleveraged contracts...because they know they will get a bailout (TARP).

What's more, because they have the laws clamped to your baby makers - they also bet against you (the customer) via short contracts on the very same securities they sell you that are marked as AAA+ by...guess who? Government regulators/ratings agencies.

The electrodes clamped to your testies are turned onto HIGH VOLTAGE, whenever their derivatives ponzi scheme begins to collapse.

The securities they sell to their customers backed/insured by this market are packaged and sold into mutual/pension funds that HUNDREDS of millions of people are told will pay for their retirements. When the time comes, someone like Henry Paulson (a Goldman Sachs schill planted into the USG) simply threatens the Puppet Extrodinaire of the day (Bush, last time around) and says....BAIL OUT THE MAJOR FUNDS OR THE SHEEPLE WILL GO BROKE AND RIOT ON YOUR SORRY PUNKS ASS.

Buy gold/silver and you are effectively removing the electrodes from YOUR future generations.