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Author Topic: 60 TRILLION v. 600 TRILLION ?????  (Read 1806 times)
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WhiskeyGirl
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« on: June 08, 2011, 06:33:22 AM »

I saw on TV last night that the US has $60 TRILLION in unfunded liabilities bankrupting our future.  Where's the money?  Who's going to pay.

Quote
These new global requirements on capital are critical to reducing the risk of failure of institutions. We need to lay the foundation for the same type of global approach to constraining risk in markets, particularly in the derivative markets.

In U.S. reforms, we are building a comprehensive framework of oversight for the over-the-counter derivatives market, which now has an estimated $600 trillion in gross exposures.

...

All derivatives contracts that are appropriate for central clearing will be cleared and traded on an exchange or other regulated trading platform. At the same time, the law makes provisions for economically essential contracts that are not suitable for central clearing - for example, trades by non-financial end users or certain complex, illiquid or otherwise highly customized derivatives.

read more here - http://www.realclearpolitics.com/articles/2011/06/06/secretary_geithner_at_the_international_monetary_conference_110102.html

Can anyone explain how there can be $600 TRILLION in derivatives?  Is the global real estate worth that much?  Is that a big gambling industry?

All one has to do to avoid regulation is create "certain complex, illiquid or otherwise highly customized derivatives."?

It seems to me the rally cry a few years ago that derivatives were so complex, misleading, etc. that most folks didn't understand them.  I read a few days ago, that some, Goldman Sachs, have been accused of unloading a lot of risk and didn't provide good/necessary information to buyers.  Information that might have lost them the sale?

So, are Americans really ahead?

Can anyone show me the REAL VALUE behind that $600 TRILLION?  The estimated value of a Ponzi scheme?  Who pays when it goes bad?
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WhiskeyGirl
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« Reply #1 on: June 08, 2011, 06:34:15 AM »

Why isn't Geithner concerned with shoring up Main Street's retirement?  Main Street's future?
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All my posts are just my humble opinions.  Please take with a grain of salt.  Smile

It doesn't do any good to hate anyone,
they'll end up in your family anyway...
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