Tag Archives: credit derivatives

The term “derivative” has become a dirty, if not evil word. So much of what ails our global financial system has been laid-at-the-feet of this misunderstood, mischaracterized term – derivatives. The purpose of this paper is to outline the origin, growth and ultimately the corruption of the derivatives market – and explain how something originally designed to provide economic utility has morphed into a tool of abusive, manipulative economic tyranny. Words: 3355

With the global economy growing, with federal deficits exploding, and with central banks printing money like there’s no tomorrow, there can be little doubt that rising markets will also bring rising interest rates. Who gets hurt when interest rates rise? The answer is all borrowers with debts coming due because they must pay more to roll them over and all lenders who have extended medium- or long-term credit at fixed rates because they suffer an immediate loss in the market value of their loans. Words: 928