you see things your way belly[rose coloured glasses]
alp is perfect[or will be]..unions lol..super

sure your of the baby boomers
who's retirment..needed a cash injection to the 'super providers'
so we all got lumped together[compulsory super]..KNOWING most mugs like us dont know to get the max govt subsidy[as you did in later years,..putting over one third youyr wages into super

yes mate..its great[but there kis baby boomers GLOBALLY
you might hear about greek pensioners[well they will want their LUMP SUM too]

i note pericules..[what at least replies the topic]..finds gold silver valueless]..so he dont care how the fed nbankers leased it to each other[for the fixed price for au@$44.44cents per oz]

it was LEASED..thus must/could should be called to acount
[return the gold[LEASED]to you[that yuou lot onsold then[for double]
and now never got no hope of ever bying back

STOLEN
thus perry values it as of no value
thats what his mates want[usually do][ie sell high[in the boom]..buy up folowing the bust..[for bonus..not for you]..you best save your super belly..cause your grandkids..wont get nuthin..

im over trying to explain
its not my problem..

just like that enforced greek haircut[sent spanish BANKS broke
ditto the 'bailout'..from cyprus..that straw that sent their banks broke

no to mention the billion EACH day..flowing from greek\[and spanish/cyprus/irish/portugeece/italie banks are collectivly bleeding eiuros[into germaniac banks]..so they can lend it back to govts

to bailout more banks
its time govt renationalised banks..[full stop]
before your high risk gambling..sends ya kids broke..

even worse if leveraging..

Let's look at Credit Default Swaps.A seller of a CDS will compensate the buyer in the event of a loan default or other adverse credit event.The buyer of a CDS makes a series of payments to the seller and in exchange receives a payoff if the loan defaults.In the event of a default,the buyer of the CDS receives compensation ( usually the face value of the loan ) and the seller takes possession of the defaulted loan.The seller can repossess the collateral put up against the loan.

So in this situation, it is the interest of the buyer and seller to have a faultering economy.They both can make money on a collapse.In the case of Fannie and Freddie 95% of all the loans according to Prof William K Black were fraudulent.This is how Soros attacked Greece.So now the bwankers take possession of all the public utilities and bring in austerity so they can reap more profits.

Much of the Fannie and Freddie loans were also bundled up as safe assets which our super funds bought into.Why were not the credit agencies brought to account?

These criminal activities are not being addressed.Even those who work in derivatives don't fully understand them.They've been made purposefully complex to con people and evade the regulators.

Arjay I favour your version on this issue. There are two major changes which occurred in the seventies which have led to the present global financial mess. Both of these events started in America. The first was the congress decision to dismantle the Glass/Steggall act which had been the basis of unprecedented global growth and stability since it was adopted to counter the great depression. The second and most disastrous change was the Reagon/Thatcher adoption of the Milton Friedmann theory of unfetterd free market capitalism. This meant that any country including Australia which fell for this mantra removed any and all control mechanisms which inhibited free trade. The problem is that in doing so we also relinquished the very instruments by which we could control and determine the future of our country. We are now at the mercy of an all powerful and giant corporate conglomerate which is also largely supported by the very governments which we elect to act in our best interests. As for derivatives a more accurate name would be imaginatives.
Den 71

DEN71,I have a suspicion that pericles trades in derivatives.They are not just an insurance policy as he would have us believe.When they have so much leverage in terms of counterfeit money they can steal real assets legally.

Note that pericles does not mention how the derivative market became 20 times the GDP of the planet.When they went off the gold standard in 1975 the banks went into overdrive creating money from nothing.Much of this money went into the derivative market.When Clinton removed Glass Steagall the markets when crazy with greed.

Note that the US Fed has created $15 trillion for bailouts and war putting the US people in huge debt.A partial audit found another $16 trillion created from nothing that went to our banks and institutions all around the planet.They just made the derivative market even bigger.

There will be more "quantative easing" in the USA but they are just delaying the day of reckoning.

I heard Nigel Farage talking to Alan Jones this morning.He said that people in Greece look like taking up arms.When you lose everything,you lose it.This is one of the reasons why these elites are pushing for war with China/Russia.They have the pollies in their back pockets and have controlling shares in all the major corporations.

It's impressive that you managed to type "CDS" into Google, Arjay, and fantastic that you were then able to find the Wikipedia entry:

"A credit default swap (CDS) is a financial swap agreement that the seller of the CDS will compensate the buyer in the event of a loan default or other credit event. The buyer of the CDS makes a series of payments (the CDS "fee" or "spread") to the seller and, in exchange, receives a payoff if the loan defaults. In the event of default the buyer of the CDS receives compensation (usually the face value of the loan), and the seller of the CDS takes possession of the defaulted loan."

Even more impressive is your ability to cut'n'paste it into your post.

What you failed to do, however, was to give even the vaguest indication that you understood that which you had carefully researched and reprinted here.

>>So in this situation, it is the interest of the buyer and seller to have a faultering economy.They both can make money on a collapse<<

That is so fundamentally wrong, and demonstrates beyond conjecture that you didn't understand the Wikipedia entry.

What would be interesting, though, would be to hear your explanation of how you managed to draw this conclusion. Who would make money, and where exactly would it come from?

Here's what actually happens:

The original borrower would have lost the property he borrowed the money in order to buy. The CDS buyer - the owner of the loan - would be compensated with the face value, but would have lost the amount of the spread. The CDS seller would have the collateral, but by this time it would be of a lower value than the face value of the loan.

So nobody makes money on the transactions. Nobody.

That, in a nutshell, is how the CDS market became a key pillar of the GFC. As the assets devalued, and the rate of default increased, everybody involved, lost.

It is always most instructive to follow the money.

Pericles not everyone one lost.If you have worthless monopoly money that can be used to hedge real assets,even if that asset depreciates by half,you have moved from monopoly money to a real asset.