Global Derivatives: $1.5 Quadrillion Time Bomb | Global Research - Centre for Research on Globalization

Global Derivatives: $1.5 Quadrillion Time Bomb | Global Research - Centre for Research on Globalization



So, unless derivatives are collateralized, ie., backed by collateral, namely treasury bonds or sometimes inferior bonds like MBSs that caused the crash in 2008, they are highly risky.



This we know, there is a shortage of collateral. That is a problem. Even Jamie Dimon has said that there is a shortage of collaters. This may be causing many deals to take place outside the clearinghouses for derivatives, which require collateral.



So the system may be unstable and dangerous to the financial well being of nations. We will see. 

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