Friday, November 13, 2009

Derivatives market soaring again!

The global OTC (over the counter) derivatives market is up 10% in the last 6 months to a mind numbing $605 trillion dollars.Wow!That's a number that even the Obama wealth redistribution team would have a hard time spending.Thats's roughly $90,000 for every person on the planet just in this trading market.Of course,this is mostly funny money thanks to our fractional reserve banking friends at the B.I.S. (Bank for International Settlements which is the central bank for global central banks).

This includes some of our favorite players in the economic collapse of last year like credit default swaps and various other hedge funds.Is is any wonder where most of the mystery money the Fed has been lending out is going?The main players here are commercial banks,investment banks,hedge funds and GSE's (government sponsored enterprises i.e.-Freddie mac and Fannie Mae).

We don't know how much or to whom the money goes to when it's snuck out the back door of the Fed and I really don't see Bernanke coming clean.Barney Frank has already indicated he will water down the Ron Paul bill to audit the Fed.We'll hear tough talk from Chris Dodd and Barney Frank about moving oversight and regulatory authority away from the Fed and to a new government agency.Gee,anyone see a potential problem here?More to come...

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