Woman Who Invented Credit Default Swaps is One of the Key Architects of Carbon Derivatives, Which Would Be at the Very CENTER of Cap and Trade

(WashingtonsBlog) – As I have previously shown, speculative derivatives (especially credit default swaps or “CDS”) are a primary cause of the economic crisis. They were largely responsible for bringing down Bear Stearns, AIG (and see this), WaMu and other mammoth corporations.

According to top experts, risky derivatives were not only largely responsible for bringing down the American (and world) economy, but they still pose a substantial systemic risk: Continue reading

Video: Goldman Sachs, the US Treasury, and criminal corruption

This is an extraordinary 26-minute video documenting criminal conspiracy between Goldman Sachs and the US Treasury with information in front of all of us to see: Continue reading

Harry Markopolos: CDS Fraud Will Make Madoff Look “Small-Time”

Memo to regulators: be forewarned about frauds in the credit-default swap market. They’ll make Bernie Madoff’s $65 billion fraud “look like small-time.” Continue reading

After $182 billion taxpayer rescue, is AIG on the verge of collapse?

You may remember American International Group (AIG). The U.S. government gave it $182 billion of taxpayer money last fall in exchange for a 78 percent stake. Of that money, $165 million went for bonuses to a handful of people in its Financial Products Group (FPG), which sold Credit Default Swaps (CDSs) on which AIG lacked the capital to make good. And $200 million more is slated for those good folks in 2009. Continue reading

Federal Reserve To Be Given Sweeping New Powers

Bankers get what they lobbied for, media reports total lack of transparency as “regulation” Continue reading

Credit Default Swaps; The Poison in the Financial System

In a little more than a decade, Credit Default Swaps (CDS) have ballooned into a multi-billion dollar industry which has changed the fundamental character of the financial system and increased systemic risk by many orders of magnitude. Continue reading

Nobel prize-winning economist described the root of the financial crisis in 1993

Nobel prize-winning economist George Akerlof co-wrote a paper in 1993 describing the causes of the S&L crisis and other financial meltdowns. As summarized by the New York Times: Continue reading

What Caused the Economic Crisis?

CDS are like an insurance contract, where the purchaser buys “insurance” that a company won’t go out of business from a seller. If the company stays in business, the purchaser pays premiums to the seller, but if the company goes belly up, the seller has to pay the face value of the CDS “policy”.

Why are CDS so dangerous? Continue reading

The Housing Bust Takes Center-stage

The Fed’s $12.8 trillion of monetary stimulus has triggered a six week-long surge in the stock market. Think of it as Bernanke’s Bear Market Rally, a torrent of capital gushing from every leaky valve and rusty pipe in the financial system. The Fed’s so-called “lending facilities” are a joke; stocks rocket into the stratosphere while the broader economy is stretched out corpse-like on a cold marble slab. Is this an economic recovery or just more of Bernanke’s “no down” zero-percent “no doc” faux prosperity? Continue reading

CDS ‘Godfather’ Says Blow ‘Em All Up’ – Webster G. Tarpley

Myron Scholes, the creator of the infamous Black-Scholes model for pricing derivatives which won the Nobel Prize and then almost destroyed the world banking system with the Long Term Capital Management bankruptcy of 1998, has now partially understood that his derivative creations are a Frankenstein monster. Continue reading

A Professional Run On Banks Has Begun

“If you have CDs or funds in banks that exceed six months of operating expenses remove them immediately.”

The following are some snippets from the most recent issue of the International Forecaster. For the full 37 page issue, please see subscription information below. Continue reading