A Secret Elite RULES (As In Kings) The Derivatives Market

My next post will tie directly into this one.  It is something I promised to put up months ago.  That is, a unique look at how fraudulent the 2010 financial reform bill actually is.

But this new article in the New York times is really no secret.  It never has been.  At least not on here.  I think we have discussed all of the major points in this article at least once over the years.  Anyone who seeks to understand this market knows that almost the entire multi-tens of trillions of dollars derivatives market is 90+% controlled by a half dozen firms.

Supposed financial reform, undertaken by a captured government, has actually made our financial system systemically worse and has literally created an even worse cabal of crooks able to manipulate our world.  It has solved nothing of value.  Nothing. 

I have written some very detailed articles on here about derivatives.  And we wrote a very extensive post on how lack of transparency and complexity in derivatives is necessary to perpetuate fraud and mint profits.  When there is equal price discovery and transparency, Wall Street’s derivatives con fails flat on its face.   Demand for most derivatives would evaporate with complete transparency in all financial markets.  It was the derivatives con which created the housing Ponzi scheme in the first place.   And all of those out of court settlements (kept out of court so Wall Street can keep society ‘dumbed down’ as to its con, so it can continue its Ponzi schemes) where lawsuits were brought to Wall Street for f*cking our school systems, our municipalities, our retirement funds, our companies and our society with these derivatives schemes would come to an end.  

And frankly, while we could get into a philosophical discussion, derivatives really serve little, if any, useful purpose.  In their current form where a handful of firms control the entire market, they serve one purpose – to create a system so structurally unsound that a small mistake by one firm could literally once again bring our financial system to its knees.  I have said before that we should ban all derivatives within our banking system.  Period.  Banks didn’t even know what a derivative was when our economy was the envy of the world.  Even today, there is not a CEO on Wall Street who understands these markets.  They are criminally-negligent for even participating in these markets when they are charged with protecting our savings.   And please no bullshit about how the world has changed.  It’s completely indefensible.  The world is going to change again.  In a way no Wall Street banker understands.  And that means their attempts at hedging couldm almost certainly will, compound future economic crises.

Wall Street creates the need for derivatives in many markets by manipulating those markets.  A perfect example is energy.  Wall Street is criminally manipulating the energy markets.  By doing so, they create an artificial demand for derivatives in the real world.  So, as an example, with so much petroleum volatility, which Wall Street traders crave and create, airlines must hedge their fuel consumption.  Ditto in the agricultural markets where the complex inputs of grains, fuel, land, fertilizers, herbicides and insecticides are used to produce an end product.   Wall Street trading in basic commodities distorts these markets and creates an artificial demand for hedging within the agricultural community.  I know people who have been farmers for forty years and never hedged anything.  Today they are speculating in the commodities markets both to make a profit and to hedge against input product volatility created by Wall Street crooks.   This extends to every commodities market including manufacturing.  It’s all a game of manipulation that will end very, very badly.

In theory, this group exists to safeguard the integrity of the multitrillion-dollar market. In practice, it also defends the dominance of the big banks.

The banks in this group .. have fought to block other banks from entering the market, and they are also trying to thwart efforts to make full information on prices and fees freely available.

Banks’ influence over this market, and over clearinghouses like the one this select group advises, has costly implications for businesses large and small, like Dan Singer’s home heating-oil company in Westchester County, north of New York City.

This is all nothing more than massive fraud perpetrated by monopoly status.  All because our government will not enforce anti-trust laws or frankly, any rule of law as it pertains to the crooks on Wall Street.   Our government cannot serve two masters.  It must either serve the American people or their own self-interested greed and power.  To date, they choose self-interested greed and power.