Monday, October 3, 2011

Why Are Derivatives Bad?

1.No regulation.
       When there is NO Regulation it is like a LOTTERY.
Imagine life without the Courts,the Police and the Military.Individuals,Societies and Nations may be in trouble.
2.Like the Fractional Reserve Banking there is the problem of LEVERAGE.
3.When these two are in the hands of the Investment bankers,the above two,in items 1 and 2 wreck havoc.
4.Derivatives are mainly MISUSED to manipulate the prices of Commodities,Currencies and Stocks by either going long or short,in the respective Futures.
5.This is how the US Dollar is kept artificially STRONG by shorting in Gold and Silver Futures by the Investment Bankers,in whose hands, the Fractional reserve banking becomes a great weapon,as mentioned earlier.
6.Thus the Derivatives are powerful TOOLs of the Investment bankers to Bankrupt Municipalities,nations etc.
Will be updated........

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