Will Rising Interest Rates Ignite the Derivatives Time Bomb?

Of the $200+ trillion in derivatives on US banks’ balance sheets, 85% are based on interest rates and for that reason I cannot take any of the Fed’s mumblings about raising interest rates seriously at all. Remember, most if not all, of the bailout money has gone to US banks in order to help them raise capital. So why would the Fed make a move that could potentially destroy these firms’ equity and essentially undoing all of its previous efforts? That being said I still see derivatives as a trillion dollar ticking time bomb with a short fuse. Words: 506

See larger image Traders, Guns & Money: Knowns and unknowns in the dazzling world of derivatives (Paperback) By (author) Satyajit Das List Price: $29.99 USD New From: $17.99 In Stock Used from: $9.00 In Stock

Financial Elite’s Behavior Has Opened Floodgates for Gold

In spite of philosophical differences in many areas of politics and economics, Ron Paul and Simon Johnson agree that the cosiness that exists between the U. S. Congress and the financial elite has not worked, and is not working, in the best interest of the average American. They both suggest that major changes must be made in that relationship to strengthen the American economy. Is it too late, however, to avoid the repercussions of an even weaker greenback, rising inflation and the opening of the floodgates in the price of all investments related to gold and silver? Words: 1278

See larger image 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown (Hardcover) By (author) Simon Johnson, James Kwak List Price: $26.95 USD New From: $17.79 In Stock This title will be released on March 30, 2010.

U.S.A. ‘Sold Out’ for $5.2 Billion!

The ‘Money Industry’ bought control of America for $5.2 Billion and, as such, bought control of the American political system and, in the process, betrayed America’s trust in them. They are still in control and there is no end in sight. Words: 1872

It’s Payback Time – Big Time!

The recession has forced a financial reckoning for Americans across the income spectrum. The pressure is especially acute for the low-income Americans who relied on borrowing for daily expenses or to gain the trappings of middle-class life. Shifting credit practices over several decades had enabled them to live beyond their means by borrowing nearly as readily as the more affluent. Now it is payback time – big time! Words: 875