The reason Carly Fiorina has changed her evil ways is because she has a bigger picture in mind. That picture is completely illegitimate.
I think it was in 2011, there were derivatives sold in amounts of something like $600 TRILLION while the 'underlying' was actually $60 trillion. The derivatives sold were more than ten times the amount of the 'underlying' and no one gave a damn. Those empty derivatives were sold. They were sold to real people with real money. That doesn't even begin to add the Swaps that may have went with them.
This was an article that appeared in April 2010 when the USA was about to pass their financial regulation laws. It appeared in the New York Daily News.
April 25, 2010
...For example, (click here) let's say you have a home that uses heating oil, and your oil company offers you a fixed price for the season. It needs to know the price of oil will be stable, so it buys an insurance policy - a derivative - guaranteeing it can buy oil at a set price during the heating season. The company can plan its business and homeowners can avoid the stress of worrying about fluctuating energy prices.
Another example: A farmer grows corn, but if the price slumps at the time of the harvest, he could go bankrupt. So he buys an insurance policy - a derivative - that guarantees him a fixed price. The farmer plants his crop knowing he won't lose money.
Business people use derivatives all the time to plan better and limit risk. All in all, it's reasonably conservative....
It is a lie. Oil distributors, unless they 'play the market' don't purchase derivatives to hedge their contracts with customers. If an oil supplier has made a contract with consumers for a year, it is because his supplier has given him a contract price, not because he purchased derivatives.
American farmers don't purchase derivatives. They work very hard and when drought hits or there is a very bad growing season they ask government agencies created to help farmers for loans to see them through to the next season in anticipation of a better growing season.
This article is a lie and 'exotic artificial instruments' are fraud. Just that simple. Now, we know it is fraud backed by the USA Republican Party to the extent of government bailouts. Incredibly, the Republicans consent to this fraud and at the same time deprive the people medical care, food stamps and unemployment benefits when it all collapses.
I think it was in 2011, there were derivatives sold in amounts of something like $600 TRILLION while the 'underlying' was actually $60 trillion. The derivatives sold were more than ten times the amount of the 'underlying' and no one gave a damn. Those empty derivatives were sold. They were sold to real people with real money. That doesn't even begin to add the Swaps that may have went with them.
This was an article that appeared in April 2010 when the USA was about to pass their financial regulation laws. It appeared in the New York Daily News.
April 25, 2010
...For example, (click here) let's say you have a home that uses heating oil, and your oil company offers you a fixed price for the season. It needs to know the price of oil will be stable, so it buys an insurance policy - a derivative - guaranteeing it can buy oil at a set price during the heating season. The company can plan its business and homeowners can avoid the stress of worrying about fluctuating energy prices.
Another example: A farmer grows corn, but if the price slumps at the time of the harvest, he could go bankrupt. So he buys an insurance policy - a derivative - that guarantees him a fixed price. The farmer plants his crop knowing he won't lose money.
Business people use derivatives all the time to plan better and limit risk. All in all, it's reasonably conservative....
It is a lie. Oil distributors, unless they 'play the market' don't purchase derivatives to hedge their contracts with customers. If an oil supplier has made a contract with consumers for a year, it is because his supplier has given him a contract price, not because he purchased derivatives.
American farmers don't purchase derivatives. They work very hard and when drought hits or there is a very bad growing season they ask government agencies created to help farmers for loans to see them through to the next season in anticipation of a better growing season.
This article is a lie and 'exotic artificial instruments' are fraud. Just that simple. Now, we know it is fraud backed by the USA Republican Party to the extent of government bailouts. Incredibly, the Republicans consent to this fraud and at the same time deprive the people medical care, food stamps and unemployment benefits when it all collapses.
