Originally Posted by
adams101
I am not sure how you don't see the failure of a Quadrillion dollars in investment capital specifically with mortgage backed securities not tying into US real estate? As I said we saw just a glimpse of this in 2008 but poured tens of trillions into the industry propping up the massive losses.... of just a glimpse. This is all one GIANT spreadsheet here the bankers have separated into two spreadsheets by forming the unregulated derivatives market. Even a 5 or 10 percent variance in these values is a global economic crash of epic proportions.
Derivatives are simply an unregulated place to hide 100 times as many toxic mortgages as those few brought to light in 2008. These mortgages are tied to tens of millions of American individuals, retirement accounts, IRA/401K's, corporations, unions, schools, city governments etc etc etc. They are all tied into derivative investments. The solvency of those people are dependent on the solvency of those derivatives.
The price of real estate is directly tied to the amount of wealth in the country. The wealth of this country is tied up in a Quadrillion dollars of derivatives. Those belong to real people both wealthy but most of all the middle class. Their pensions, 401K/IRA's, the stockmarket, employment etc are massively tied to them. Much of the corporate wealth in the US is tied to them.
How you see this as unrelated I have no clue.