Breezhnev: Here’s my problem with your various posts: Using polemical language like “oligarchy” and “looting” doesn’t encourage anything in terms of a useful debate.
As to knowing the full scope of the problem: I don’t think anyone knows the complete picture and that is part of the problem. You and I have disagreed previously regarding the size of the derivatives market. I pointed out that the NOTIONAL (and that word is key) value is approx. $600Trn. Your response is that the number isn’t useful because the various contracts cancel each other out. That’s where I disagree. I don’t think that’s the case at all. I don’t think anyone has a clue as to how interrelated the various portfolios are, how much potential liability exists, or what would happen if things went south. Recall that in 1998 Long-Term Capital Management (LTCM) nearly blew a hole in the market when their various derivative positions unwound and LTCM was microscopic compared to the size of the present day derivatives market.
Here’s the key point regarding derivatives and, in a larger sense, the various “too big too fail” institutions: If there is a disorderly unwinding encompassing these institutions that occurs simultaneously or nearly simultaneously, then we are looking at a worldwide systemic collapse. That’s a Game Over scenario.
Now, back to words like “oligarchy” and “looting”. I don’t disagree that there are major issues regarding cronyism, favoritism, and outright fraud and theft. However, engaging in hysterical outbursts and saber rattling doesn’t do anything to solve the problem. It’s like yelling at the guy holding the matches while the damn house burns down. First, PUT OUT THE DAMN FIRE and then, once it’s out, worry about prosecuting the arsonist (or arsonists).
When I pointed out your various flip-flops regarding Obama, it was for the same reason. Pick a side, educate yourself and then get involved. I mention Dave’s background or mine for a reason and that is you have to understand what you’re talking about if you are seriously going to effect meaningful change. Screaming and waving your pitchfork doesn’t do a damn thing to fix the problems and, in many ways, it’s exactly what the evildoers (little nod to Dubya for ya) want. Hence, the distractions we see every day and those are meant to keep us away from the truth.
