Derivatives: Bigger than Sub-prime Mortgages

Folks,

Here's a bit of a discussion on this important topic of derivatives and why you need to call your congress person and tell them to vote NO. It's an MP3 file.

Here.

The role of Buffet here is important, but I'd be interested in what others believe what the trends are given his recent purchases. Buffett On Derivatives: 'A Fool's Game' is an article written a year and a-half ago quoting the sage himself.

We need to be clear that the problem is much larger than sub-prime mortgages, which is the principle way that this story is being spun. People's stock portfolios rose in the 90s and 2000s, but no one seemed to ask why and how as jobs flowed overseas and most rural and industrial America became ghost towns. Those who remained wrapped themselves in a bloody flag, meth labs, and Nascar.

The tranquilizing effects of "entertainment" also ensnared the cynical sophisticates of the urban meccas. They had been to college and believed that they as Americans were beyond reproach. Never mind that the militarization they intended for the world became a karmic noose that tightened progressively with each collateral mistake, with each uranium bullet, with each refugee, and hollow claims for "human rights." Of course they were hollow, every one knows you put your money where your mouth is and everyone's money is still in Ratheon and Goldman.

Well, now that it's becoming increasing apparent that this model may not actually be in their best interest, the question becomes what is the best solution? First is to stop funding "them", and reallocating these resources in ways that increase revenue within communities as opposed to centralizing it in the hands of corportists.

The Shock Doctrine has been getting some coverage from the media. In it you'll find a discussion of how the current situation resembles happenings in S. America over the last 20 years. I feel I've belabored the point about SE Asia and Argentina, but these were lies I saw unfold before my eyes and affected people I know. The arrogance from Sorros to Bush to Clinton to Rubin to Summers to Greenspan to NPR to Wall St. Journal to NYT, all the glib disregard!

Catherine Austin-Fitts runs a site called Solari, which analogizes Wall St. to a parasite draining from the "host"-- Main St. As a Wharton graduate and one who has worked in both Republican and Democratic administrations, few have her insider expertise and smarts. Here.