Re: Brin: on Debt, Democracy, and all that

On 12/5/2011 12:51 AM, David Brin wrote:
>
> Wow, this was more interesting than I expected it to be. "On Debt, Democracy,
> and all that..."
> http://www.nakedcapitalism.com/2011/12/michael-hudson-debt-and-democracy-has-the-link-been-broken.html
>

Only the best for the good doctor.

>
>
>
>>>> What with 700+ Trillion in derivatives outstanding...
>
>
> Huge exaggeration.  700 trillion was artificially lent to banks so that their
> balance sheets would show enough capital so they would not have to be closed.
>   They then used it to buy treasury bonds..  Most of it is not missing.

You're conflating a few things.  Here:
http://www.marketwatch.com/story/the-700-trillion-elephant-room-theres

http://www.washingtontimes.com/news/2010/may/10/stock-market-time-bomb/?page=all

http://www.ied.info/articles/an-honest-bank-is-so-simple-you-can-run-it/hedge-funds-hedging-risk-becomes-infinite-risk

You see Derivatives are like Gambles (or Gambles on Gambles) (Or Gambles 
on Gambles on Gambles), Sort of like getting fire insurance on your 
neighbors house, and then doing things to increase the likelihood that 
your neighbors house burns down, etc.

HTH.