*****About The 14 Trillion Collateral Behind The 1.144 Quadrillion Derivatives Market*****

RGEmonitor reports that collateral use increases by 86% to $4 trillion in OTC derivative market.

(emphasis mine) [my comment]

Collateral Use Increases By 86% to $4 Trillion
Apr 27, 2009

In a release last week, the International Swaps and Derivatives Association has determined that collateral in circulation has essentially doubled from its 2008 estimate of $2.1 Trillion to $4 Trillion [banks are using this cash to fund their operations]. Not surprisingly most of this collateral is in cash.

Cash continues to grow in importance among most firms, and now stands at over 84 percent of collateral received and 83 percent of collateral delivered.


Another interesting tangent is where all this money is invested, with Treasuries (especially one month and other near maturities) likely being an easy conclusion [Banks can use these treasuries as collateral for repo loans, thereby funding their holdings of toxic debt]. Any endogenous risk events will likely have a shakeout not only in the derivative collateral market but also in their downstream investment, and could potentially be yet another shock to treasury holdings, especially if a wholesale unwind forces the accelerated sale of Treasuries by collateral counterparties.

KBC Merchant Banking reports that past trends in the OTC derivative market.

In the past, collateralization was only used for 'on-exchange derivatives'. The practice of initial- and variation margining has been used since the early 1980s, when several futures and options exchanges were founded in the US (e.g. CBOT) and in Europe.

Increased attention to risk management, reinforced by a series of market disturbances in the 1990s, has contributed to the growth of the collateralization of financial transactions over and beyond the regulated futures and options business. The concept of collateralized trading in the OTC sphere grew out of repo activities and the securities-lending business, both of which are effectively collateralized markets [Repo activities, securities lending, and derivative collateral were three of the financial innovations that enabled the massive credit bubble we have come to know and hate]. As financial institutions and hedge funds expanded their operations [into subprime mortgages] and accordingly required additional credit lines, the collateralization of OTC derivatives continued to increase in importance [banks used (and are still using) the collateral from OTC derivatives to fund their "expanding operations"]. Today, collateralization is becoming standard market practice in the US and Europe, with Asia following rapidly on the heels of the West. Initially, only banks and hedge funds set up collateral agreements with each other. However, collateralized trading has since spread quickly to other market participants such as companies.

The growth of the collateral market is clearly illustrated by the results of the 2006 ISDA Margin Survey, which is conducted every year. Banks and brokers remain the largest category participating in the survey, followed by institutional investors and hedge funds. The constantly rising percentage of participating corporate counterparties is a strong indication that collateralization is becoming standard practice amongst all market participants.

Based on the 2006 Survey results, ISDA estimates the gross amount of collateral in use to be $1.329 trillion as of the end of 2005. This amount represents a growth rate of 10 percent over the previous year. [Looking at this data, remember that this collateral/cash was being plowed into mortgage CDOs. This is where the demand for subprime mortgages came from]

Reuters reports that banks see risk in central clearing of derivatives.

Central clearing of derivatives seen adding risk
Tue Jun 9, 2009 4:31pm EDT

NEW YORK, June 9 (Reuters) - Proposals to require that all contracts in the $450 trillion [OTC] derivatives market be centrally cleared could tie up valuable capital and constrain the liquidity of companies [banks] that use the contracts to hedge [fund] their businesses, derivatives users and dealers warned on Tuesday.

The use of central clearinghouses is viewed as key to removing systemic risks posed by the contracts, should the failure of a large dealer spark a chain of losses globally. The issue arose after the collapse last year of Lehman Brothers and insurer American International Group.

[Banks are TERRIFIED by proposals to have all contracts in the $450 trillion OTC derivatives market centrally cleared. One of the roles of central clearinghouses is to hold on to collateral from both parties. If OTC derivative are centrally cleared, banks would lose access to the cheap funding provided by the 4 trillion in cash collateral they currently control. They don't have anything that anything which could replace it.]

Intent reports about The Invisible One Quadrillion Dollar Equation.

Financial Chaos: The Invisible One Quadrillion Dollar Equation
Posted Sun, 09/28/2008 - 21:00

According to various distinguished sources including the Bank for International Settlements (BIS) in Basel, Switzerland -- the central bankers' bank --
the amount of outstanding derivatives worldwide as of December 2007 crossed $1.144 Quadrillion, ie, $1,144 Trillion.

The main categories of the
USD 1.144 Quadrillion derivatives market were the following:

Listed credit derivatives stood at USD 548 trillion; [I haven't talked about listed derivatives much, mainly because I didn't realize their size. Collateral requirements are much stricter in listed/regulated markets, which means the collateral behind these 548 trillion listed derivatives is probably around $10 trillion (my guesstimate)]
2. The Over-The-Counter (OTC) derivatives stood in notional or face value at
USD 596 trillion and included:

a. Interest Rate Derivatives at about
USD 393+ trillion;
b. Credit Default Swaps at about
USD 58+ trillion;
c. Foreign Exchange Derivatives at about
USD 56+ trillion;
d. Commodity Derivatives at about USD 9 trillion;
e. Equity Linked Derivatives at about
USD 8.5 trillion; and
f. Unallocated Derivatives at about
USD 71+ trillion.

That is a number only super computing engineers and astronomers used to use, not economists and bankers! For example, the North star is "just" a couple of quadrillion miles away, ie, a few thousand trillion miles.

Counting one dollar per second, it would take 32 million years to count to one Quadrillion.
The numbers we are dealing with are absolutely astronomical, and from the realms of super computing we have stepped into global economics.

My opinion about derivatives is best summarized by Rense.com article titled the $1.5 quadrillion derivatives bubble.

... Humanity is in agony, and we must act against derivatives now. Going forward, we must ban the paper pyramids of derivatives in the same way that the Public Utility Holding Company Act of 1935 banned the pyramiding of holding companies.

Derivatives were illegal in the United States between 1936 and 1983. In 1933, an attempt was made to corner the wheat futures market using options, and the resulting outcry led to a 1936 federal law banning such options on farm commodity markets. This ban was repealed by the Futures Trading Act of 1982, signed by President Reagan in January 1983. During the G.H.W. Bush administration, Wendy Gramm of the Commodity Future Trading Commission went further, promising a "safe harbor" for derivatives. Despite the key role of derivatives in the Orange County disaster during the Clinton years, a valiant attempt by Brooksley Born of the CFTC to make derivatives reportable and subject to regulation was defeated by a united front of Robert Rubin, Larry Summers (today running US economic policy), and Greenspan. Despite the central role of $1 trillion of derivatives in the Long Term Capital Management debacle of 1998, Phil Gramm's Commodity Futures Modernization Act of 2000 guaranteed that derivatives, notably credit default swaps, would remain totally unregulated. These pro-derivatives forces must bear responsibility for the current depression, and those still in power must be ousted

The derivatives are the black holes of financial engineering, and can easily consume all the physical wealth and all the money in the world, and still be bankrupt. Gordon Brown's demand of $500 billion for the IMF is enough to bankrupt several nations, but pitifully inadequate to deal with the derivatives. They can only be dealt with by re-regulation -- a quick freeze, leading to extinction and permanent illegality. We reject Brown's IMF world derivatives dictatorship.

Derivatives pose the question of fictitious capital -- financial instruments created outside of the realm of production, and which destroy production. In 1931-2, fictitious capital appeared as tens of billions of dollars of reparations imposed on Germany, plus the war debts owed by Britain and France to the United States. These debts strangled world production and world trade. Bankers and statesmen tried desperately to maintain these debt structures. But US President Herbert Hoover proposed the Hoover Moratorium of 1931-1932, a temporary freeze on all these payments. The Lausanne Conference of June 1932 was the last chance to wipe out the debt permanently. But the Lausanne Conference failed to act decisively, and passed the buck. By the end of 1932, there was near-universal default on reparations and war debts anyway [This is the fate of the derivative market: near-universal default]. And by January 1933, Hitler had seized power. We urge the London G-20 to defend world civilization against derivatives. It is time to lift the crushing weight of derivatives from the backs of humanity before the world economy and the major nations collapse into irreversible chaos and war, as seen during the 1930s.

My reaction: Derivatives bear great responsibility for the current depression.

1) The collateral in circulation in the OTC derivatives market has doubled from $2.1 Trillion in 2008 to $4 Trillion in 2009.

2) Cash continues to grow in importance (84 percent of collateral received/delivered).

3) This $4 Trillion (mostly cash) collateral is invested in treasuries, especially one month and other near maturities

4) Banks can use these treasuries as collateral for repo loans, thereby funding their holdings of toxic debt.

5) Any shakeout in the derivative collateral market would create yet another shock to treasury markets by forcing the accelerated sale of Treasuries by collateral counterparties.

6) The concept of collateralized trading in the OTC sphere grew out of repo activities and the securities-lending business. Repo activities, securities lending, and derivative collateral were three of the financial innovations that enabled the massive credit bubble we have come to know and hate.

7) Banks used (and are still using) the collateral from OTC derivatives to fund their expanding operations (into subprime mortgages).

8) Proposals to require that all contracts in the $450 trillion OTC derivatives market centrally cleared are terrifying banks.

9) The use of central clearinghouses is viewed as key to removing systemic risks posed by the contracts, should the failure of a large dealer spark a chain of losses globally

10) If OTC derivative are centrally cleared, banks would lose access to the cheap funding provided by the 4 trillion in cash collateral they currently control.

11) The gross amount of collateral in use in OTC markets has been growing at double digits rates in recent years (ie: 10 percent in 2005)

12) The growing pile of collateral/cash was being plowed into 'AAA' (toxic) debt and explains much of the demand for subprime mortgages.

13) According to various distinguished sources, the amount of outstanding derivatives worldwide as of December 2007 crossed $1.144 Quadrillion ($1,144 Trillion).

14) The $1.144 Quadrillion derivatives market is made up of listed credit derivatives totaling $548 trillion and OTC derivatives totaling $596 trillion

15) Derivatives were illegal in the United States between 1936 and 1983.

16) The fate of the derivative market is near-universal default.

Conclusions about derivative markets:

1) There is probably $14 Trillion collateral behind listed/OTC derivative markets ($10 Trillion from listed derivatives and $4 Trillion from OTC derivatives).

2) This $14 Trillion collateral is invested in dollar-denominated debt. As the dollar collapses (as a result of fed's money printing), interest rates will skyrocket and this collateral will lose all value. Investors trying to collect on profitable bets (ie: call options on gold miners) will find their derivative contracts backed by insolvent counterparties and worthless debt.

3) Most of the $2 Trillion jump in OTC derivative collateral which occurred last year probably happened after the Lehman bankruptcy, and it explains the big rally in treasuries.

4) (Insolvent) banks relying on collateral from OTC derivatives for funding. If OTC contracts are centrally cleared as is being proposed, it will create another liquidity crisis, like after Lehman.

5) Derivatives are fictitious capital. No matter what type of derivative contract an investor buys, his money flows into the US credit market. As a result, while derivatives give investors the illusion of worth, they are in fact backed by the largest credit bubble in the history of mankind. Their real worth is zero (hence they are fictitious capital).

6) Anyone buying options, forwards, swaps, and other derivatives contracts is making a long term bet on the solvency of the United States and the continued worth of the dollar. This is a disastrous bet.

7) Derivatives were illegal once, and (after the near-universal default on outstanding contracts) they should be made illegal again.

Sell any derivative contracts you own, and use the proceeds to:

A) Buy equities via non-margin brokerage accounts (at an institution you trust).
B) Buy non-dollar, non-pound, non-yen debt (of a solvent institution)
C) Buy physical assets/commodities (especially gold and silver)

This entry was posted in Background_Info, Currency_Collapse, Financial_Wizardry, Wall_Street_Meltdown. Bookmark the permalink.

20 Responses to *****About The 14 Trillion Collateral Behind The 1.144 Quadrillion Derivatives Market*****

  1. Jimmy says:


    A) Buy equities via non-margin brokerage accounts (at an institution you trust).

    What is the difference between non-margin and margin brokerage accounts with regards to security safety?

  2. Another great piece. What is your sense of a timeline for this collapse?

  3. Jeff Burton says:

    Jimmy - if you are buying on margin, you are basically taking out a loan from your brokerage and buying stock. If the price falls precipitously, you may have to both sell your now de-valued stock and come up with the difference to make good the loan. It's why people jump off tall buildings without a red cape.

  4. Jimmy said...
    What is the difference between non-margin and margin brokerage accounts with regards to security safety?

    Brokers can't use your securities as collateral for loans in a non-margin account.

    Hypothecation and re-hypothecation, respectively, are commonly used to describe the means by which securities brokers and dealers first extend credit on margin to their customers using pledged securities as collateral, and then pledge the client-owned securities held in the client's margin account as collateral for the brokerage's bank loan. In this example, hypothecation describes the posting of collateral to secure the customer's obligation to the broker; rehypothecation is the pledging by the broker of hypothecated client-owned securities in a margin account to secure a loan to the broker from a bank.
    *****Securities Lending And Why Wall Street Sold 2.5 Trillion Treasury IOUs Last October*****


    Keating Willcox said...
    Another great piece. What is your sense of a timeline for this collapse?

    The dollar collapse will pick up steam sometime before the end of September.

  5. Dudeman says:

    Its interesting to hear talk about the dollar collapse as a future event. Given that the number trillion is part of day every conversation it seems like its already here. What comes after trillion?

  6. Anonymous says:

    We have japan, and now russia both stating that they have full faith in the USD, and back it 100%...

    Eric deCarbonnel preaches about the fall of the USD, what a buch of BS!

    You guys need to get a life.

    Oh just so you don't think I'm yanking your chain:



    You guys are going to end up looking like fools, and about to lose so much for buying gold.

    A collapse in the dollar my ass...

  7. occdude says:

    I have a question. Wont the unwinding of all these derivatives be deflationary seeing as how all these institutions have considerable counter party risk?

    You aptly pointed out the risk of a margin account. Was that due to fears of mass brokerage insolvency? And if there is insolvency wont that be deflationary as well?

    I've heard interesting deflationary commentary of late. One point a deflationist made is that we have already been in a long, protracted inflationary period lasting 20-30years if you take the price of gold from when we went off the gold standard till now (32 bucks to 1000) that unto itself is considerable inflation.

    The other point is, that the dollar will RISE due to the fact it is the SICKEST of currencies. Due to the fact the dollar is the most indebted currency out there, when deleveraging occurs, it causes an enormous desire for the currency that the debt is denominated in (the dollar). When your demand outstrips supply, the price rises (as happened with this last deflationary bout).

    The only thing that may rise in this asset deflationary environment is staples due to the fact that money velocity HAS to go to staples because people need to eat. Therefore thats where you will get the price increases due to the inevitable flight of speculators to the only things people cant do without.

    Rule of thumb. Anything bought with credit is going down in price. Anything usually paid for in cash is going up.

    The government is finding out that it is going to be constrained from monetizing the debt due to the bond market ready and willing to raise rates faster than they can print. Printing and spending too much money also risks a currency crisis which would be politically disasterous. Remember there are trillions of dollars out there in the world and the owners of that paper are not interested in seeing it devalued.

    Finally, the market forces of deflation are so much more quick and efficient as opposed to the bumbling, stumbling efforts of the government to inflate. So deflation first, then lots of inflation. When health returns to the market, dividend yields will be north of 8 percent, PEs will be in the 5 range and companies will be reporting higher earnings with the unemployment rate going down. The price of gold and equities will be at a ratio of 1-1 or 2-1.

    Real estate will be a four letter word. Interest rates will be very high (north of 20percent), and 20-25 percent down will be standard if not mandatory IF you can even get the loan.

  8. OperationNorthwoods says:


    Russia and Japan praising the dollar means it's time to run for the hills. Haven't you read Sun Tzu or The Prince?

  9. landjforall says:

    Everybody owes most of their debt in dollars. But no one owes more dollars than the U.S. Gov. So as dollars become scarce as the credit bubble bursts via derivative destruction. The U.S. Gov via the Federal Reserve will print so damn much money it will make the 70's look like practice. Asset prices will plummet and food and fuel prices will soar. "Precious" metal will be just that.

  10. Numonic says:

    occdude, i take it, you've never read any of my replys.

  11. big A.L. Cap. Pone says:

    derivatives illegal?
    simple futures used for 800+ yrs.
    Options, warrants on real
    physical things old.
    c. 1971 Chicago guys
    invented options on bundles of
    IOU's papers etc.

  12. Occdude says:

    Numonic I believe I haven't, but if you send me the pertinent links, I'll be happy to look at them.

  13. Numonic says:

    Occdude, here is a paper I did titled "The Global Financial Prophecy"

    The Global Financial Prophecy

    1. The Sickness: Credit/Third Party Banking/Lending. Not too much credit but credit period is the sickness.

    a. Ignoring the supply of tangibles compared to the supply of money, the value of credit or a bond is based on the lenders/banking systems solvency. The more solvent the banking system/lender looks the more valuable is that banking systems/lender’s bond/credit. Nothing makes a banking system/lender look more solvent than a banking system/lender that is lending/giving money out for free in massive quantities at massive speeds. This gives the image that the lender/bank has so much money that it can give it away recklessly/without care. This is why banks were lending so freely/easily and why bonds have been increasing in value over the last 30 years.

    b. Credit has also been decreasing the world of producers and replacing them with consumers. But because the producers were decreasing, allot of consumers began starving and poverty increased in the world.

  14. Numonic says:

    2. The Medicine:

    a. Over 90% of banks/third party holdings will fail at providing depositors with their money. The stock market will crash to record lows.

    b. Because of rising borrowing costs due to the massive defaults, prices on everything tangible will rise by at least a million percent and will continue rising rapidly there after. (i.e. Gas over $100/gallon, oil over $5,000/barrel, over $100 for a gallon of milk etc.)

    c. 100% of people will begin keeping their money in a private place where only they and they alone know where it is. And because prices will be so high and rising, people will not be keeping paper as money they will be keeping things that are durable, hard to produce, rare, vital for producing things and divisible without changing it’s property (i.e. Gold, Silver, Platinum, Palladium, Copper etc. Metals). The price of those things will be rising the most. 5 One dollar bills will be worth more than 1 One Hundred dollar bill. The face value on the bill will not matter anymore because the value of money will be based on it’s commodity value and 5 pieces of paper has a greater commodity value than 1 piece of paper. The fiat paper currency will be in disarray because it will be based on it’s commodity value and not it’s fiat value.

    d. The government will create money bills larger and much larger than the current largest denomination of the money. (This means they will create $100,000 to 1,000,000,000 dollar bills. $100 dollar bills will no longer be the largest bills we use.) The govt. will do this to have enough money to stop the massive defaults/bankruptcies(these defaults being the cause for the rise in price of all tangibles, the govt. wants to keep the price of all tangibles low, so stopping the defaults is their plan) from all the debt that was created since the banking system started which totals over $1 quadrillion. That’s over $1,000 Trillion dollars. A majority of that debt was created in the last 10 years. The larger bills will be the final attempt at saving the banking system.

    e. 90% of companies and businesses will close down and we will have 90% unemployment. Those who are lucky enough to keep their job will receive wage cuts. People will not be able to make a living with the wage cuts and higher prices.

    f. Because the producers in this world have been shrinking over the years, even countries that did not participate in the massive overleveraging will have currency problems. Because so much debt around the world will be worthless due to the massive debt destruction, China will no longer accept any of the debt around the world and exporting from China will disappear as China focuses more on domestic consumption and importing. China will try to move from being a major producer to being a major consumer. China will fail at being able to import because most of the worlds manufacturing sector is poor and most of the world will be producing for survival and not have enough to export yet. China will have a hard time finding things to spend it’s money on. And because there will be a shortage of things to spend it’s money on, the price of things will rise even in China’s currency. So even though China was not involved in the massive overleveraging and massive de-leveraging, it’s currency will suffer because of the rest of the world’s poor manufacturing sector which will cause a sort of uncontrollable protectionism for most countries. People around the world will not be exporting because they will not have enough to export and what they used to export (their debt) will be worthless.

  15. Numonic says:

    3. The Recovery:

    a. Because it will be so worthless to get paid with paper, people will start demanding to get paid in things of more value. People will start demanding to get paid with metals because of all the metal’s properties.

    b. There will also be bartering going on and people will be trading whatever they can for goods and services.

    c. More people will want to work because they know that they will be getting paid in things that will be rising in value ( i.e. gold, silver, platinum, palladium) and the only way to get those things will be by working for them.

    d. More people will become producers instead of just consumers and there will be more things produced in the world and global poverty will decrease. More metals will be mined and producing will become easier because the metals have industrial properties that help increase the efficiency of infrastructure.

    e. Since people will be getting paid in things that will be rising in value, more people will be richer sooner and more people will be able to retire earlier than they would have before.

  16. Numonic says:

    Oh and I expect this to happen within the next year or two at the longest. This will all take place within the next 2 years. Credit only has 2 years left at the most. The ball has started rolling and it will pick up pace in a couple months. I see close to $10/gallon gas by the end of this year. And once that type of pricing is in, the market will breakdown at breakneck speeds. $50/gallon gas in 2010.

  17. Numonic says:

    Check this out. I did some research on the history of the US currency denominations and we used to have larger denominations of US Currency.

    Check it out here:


    But the key point is "these bills were used by banks and the Federal Government for large financial transactions. This was especially true for gold certificates from 1865 to 1934. However, the introduction of the electronic money system has made large-scale cash transactions obsolete..."

    I looked up "electronic money"


    and one of the issues with it is "There are also potential macroeconomic effects such as...shortage of money supplies (total amount of digital cash versus total amount of real cash available, basically the possibility that digital cash could exceed the real cash available)."

    Now the govt. abandonned and discontinued these large bills because those transactions were replaced with digital money but if digital money fails(which it is failing and will collapse soon), the govt. will be forced to go back to creating these largeer denominated bills.

    Now it says "According to the US Department of Treasury website, "The present denominations of our currency in production are $1, $2, $5, $10, $20, $50 and $100....Neither the Department of the Treasury nor the Federal Reserve System has any plans to change the denominations in use today."

    And when you go to the US treasury FAQ website:


    It says:

    "Question: What denominations of currency are in circulation today? Will any new denominations be produced?

    Answer: The present denominations of our currency in production are $1, $2, 5$, $10, $20, $50 and $100. The purpose of the United States currency system is to serve the needs of the public and these denominations meet that goal. Neither the Department of the Treasury nor the Federal Reserve System has any plans to change the denominations in use today."

    Well we are seeing today that those denominations don't meet the goal of the public and the digital money system is breaking down without adequate size denominated currency.

    This is proof that larger bills will be created. Not that it will matter. The currency is doomed by default regaurdless if these larger bills are created or not. These larger bills are or will be a final attempt at saving the banking system. Without creating these larger bills, the banking/digital money system will collapse and borrowing costs/risk premiums will rise. Companies that rely on borrowing to stay in business will have to pay higher borrowing costs or close down. Wanting to survive companies will raise prices on their goods and services in order to make the money to pay the rising borrowing costs. So you see even without these larger bills and massive printing, prices on goods and services still rise, why because of massive defaults pushing up risk premiums on borrowers.

  18. Dave Narby says:

    With a 1000:1 debt:equity ratio, that will *have* to be defaulted on.

    You realize that you have made the ultimate argument for deflation..!

  19. Numonic says:

    Does this website block the words "borrowing costs" because everytime I say it, it seems to get ignored.

    The fallacy of the century is that massive defaults will cause prices of things to drop.

    On top of that the basis behind rising unemployment is another reason prices must rise. Unemployment isn't rising because companies see no reason to have so many people working because of a drop in sales(although that is happening), unemployment is rising to cut costs, these costs i speak of are borrowing costs(those seemingly invisible words). Instead of raising prices, companies are cutting what is costing them money( i.e. employees). This massive unemployment will soon be followed by massively rising prices because trying to save money by eliminating the costs of keeping employees isn't enough, borrowing costs will rise very high due to the massive defaults and companies will have to come up with other ways to make that money to stay in business, the only other way is by raising prices of their goods and services. So we'll have prices rising high while at the same time unemployment rising high. The debt deleveraging is what will be driving consumer prices higher, it's also what will be causing store shelves to empty as more companies won't be able to afford the goods and the drop in companioes inventory due to not having enough to pay for supplies will be made worse as more and more people come in droves to the store to buy the goods before supplies are wiped out, but the debt deleveraging will eat up supplies faster and greater than the people can, this is why consumer demand isn't as much a factor as many people are making it out to be. It's the deleveraging of debt that will be the monstrous demand eating up supplies. Companies will raise prices to have enough money to keep their doors open and their shelves stocked but this monstrous debt deleveraging beast has a $1 quadrillion stomach and in order to satisfy it, prices must go just as high.

    This isn't deflation, this isn't inflation, This is hyperinflation.

  20. The Federal Reserve expands the monetary supply to create bubbles,
    & contracted the monetary supply to destroy America.

    Follow the money.

    50 Trillion of the Tarp money went to German, British & French Banks.
    (They would have collapsed if not given the money.) The Derivative Pyramid needs to be outlawed, retroactive. It is impossible to ever make good on these securities.

    What is the point of trying to save this quadrillion plus of fraudulent instruments at the cost of people & country?




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