Chat with us, powered by LiveChat
Menu

Derivatives Video: This is How 2008 Will Happen Again

Derivatives
Print Friendly, PDF & Email

EDITOR NOTE: Here’s a thought to shake things up a bit: the 2008 financial crisis never truly ended. Before you dismiss this notion with utter disbelief, think about it in relation to a serious underlying illness. Just because you’ve treated the “symptoms” of your illness doesn’t mean that the underlying illness has gone away. In 2009, the symptom was the stock market, but the illness--OVERLEVERAGED USE OF FINANCIAL DERIVATIVES by banks and financial institutions--remained. And the government is turning a blind eye toward it. The total value of the US stock market is between $89 trillion to $95 trillion. That may sound like a lot of money. But if you consider the derivatives being traded on top of it--the larger bets on top of the already-large bets--the total value, and hence TOTAL RISK is estimated to be somewhere between $640 TRILLION to $1 QUADRILLION (or 1000 trillion)! Think of what will happen when up to a quadrillion worth of assets begins collapsing. It will be a crash the likes of which we’ve never seen in the history of the US stock market. You see, leverage caused the 2008 crisis. The difference between then and now is that the leverage our market is currently holding DWARFS the risk we held in 2008. Your money and investments are sitting on a ticking time bomb. And the only safe-haven assets that will not only withstand but also benefit from the impending collapse are non-CUSIP gold and silver.

Originally posted by GSI Exchange

PDF-image-precious-metals

GET YOUR FREE DEFINITIVE GUIDE TO PRECIOUS METALS

  • This field is for validation purposes and should be left unchanged.

All articles are provided as a third party analysis and do not necessarily reflect the explicit views of GSI Exchange and should not be construed as financial advice.

Precious Metals and Currency Data Powered by nFusion Solutions