The five letter F word everyone in Washington is afraid to use F---D>FRAUD

"oops! I popped the next bubble."

A derivative instrument is a contract between two parties that specifies conditions—in particular, dates and the resulting values of the underlying variables—under which payments, or payoffs, are to be made between the parties.

Derivatives can be used for speculating purposes ("bets") or to hedge ("insurance"). For example, a speculator may sell deep in-the-money naked calls on a stock, expecting the stock price to plummet, but exposing himself to potentially unlimited losses. Very commonly, companies buy currency forwards in order to limit losses due to fluctuations in the exchange rate of two currencies. (from wikipedia's description)

There is a reason why Vegas exists and survives in a bad economy. If you bet long enough the house always wins. Back in 07'08' AIG's collapse was not bad insurance deals it was a 18 billion dollar derivative swap that went wrong i.e. lost the bet and a long line of other deals they had were about to collapse so the government stepped in with a bailout for their stupid series of mistakes. All the banks were losing there bets and the U.S. Government deemed them too big to fail and bailed them out with liquid cash that they printed. This too seems logical until you realize what the extra trillion dollars (give or take a 100bil or so) went into the money supply and made every dollar out there less valuable.


So you would think that we learned our lesson after we bailed out wall street and the cries for more regulations I hear from so many people. Regulations just to have regulations are not effective. Bad regulations written by lobbyists in the same industry that they are regulating given to a congressmen or senator who is on their donation list is BAD REGULATION. Doesn't this sound like FRAUD? Well that is how things are currently in place.

So you would think that we learned our lesson after we bailed out wall street and the trillions of dollars that bailed out insurance companies and wall street. The shell game answer is they paid back their bailouts with interest. Some yes but after a partial audit of the Federal Reserve it was shown that the bailout was more than what the media was letting us know about. Trillions even going out to foreign investment banks to cover their yes "bad derivatives" you see the world banks are also too big to fail. If a true market existed. The banks would fail and sound banks smaller banks would of filled the void and the big bank would go out of business and liquidate.

so you would think that we learned our lesson after we bailed out wall street and the trillions of dollars gambled on derivatives.

http://www.thedailybeast.com/newsweek/2008/10/17/600-000-000-000-000.html

nope we currently have a 600Trillion dollar derivative market! nobody disputes the number. cuz it's actually higher.

from the above article "The total world market value of derivatives—the money these promises are actually worth today—is more in the neighborhood of $15 trillion. That is still huge, slightly larger than the U.S. economy. And it's growing fast: the derivatives market has been doubling in size every two or three years for the last decade, for many reasons. Increasingly sophisticated computers make it easier to create and price complicated derivatives. Another is the continuing rise of "quants," math geniuses who Wall Street began recruiting in the mid-1980s, precisely to invent exotic new financial products. Top universities smelled the money, and now most have graduate programs in financial engineering."

"With that growth comes the continued potential for a blow-up, in large part because there is no clearinghouse for trading in most kinds of derivatives. Such an institution would make trades and risk more transparent, which is why many government officials as well as experts like George Soros and Robert Reich are pushing for it. Until then, the $55 trillion question is whether controls can be put in place before the CDS market explodes, again."


We need to protect the 99.9% because as we learned before we all have skin in the game eventually when the power brokers in wall street screw up and "ooops I popped the bubble" happens or we could let the market just let the morons gambling trillions go out of business as it happens and not bail them out but if we put regulations in place let's make them laws instead and if there is fraud. Let's use those things we call "JAILS" this time. So far nobody is in jail yet from the meltdown. One conviction of a banker. still no jail time yet. There's these guys called lawyers for the uber rich involved.... oh don't get me started on that right now.

Steve Jobs 1955 - 2011

Today one of my customers who is Blind and provides IT services for visually impaired organizations told me the impact of Steve Jobs on his life and others like him.
The iPhone has been a revolutionary device for all blind people. There is a visually impaired voice control function in the standard iphone OS. Normally special features like this cost hundreds of dollars more. Apple includes it in the phone. Because of Apple other phone manufacturers are following their lead. My friend from New Jersey said that Steve Jobs will always have an eternal place in the hearts of the visually impaired!

Is it me or am I just out of my mind?

It seems like lately. I've been so busyminded! I know that it's supposed to be two words. Busy minded. But, I mean busyminded! My brain is moving at a gazillion miles an hour and life seems like it is moving in a flash. Yet not really getting anywhere. That is what I'm trying to change.

You know how in the matrix 1 minute goes by as a second of motion occurs. WELCOME TO MY WORLD!