I have to admit, I am no economist. I use reason and common sense to evaluate what is going on in our economy. I try to watch as much news as possible, both left and right, since there is no truthful news, and I try to read as much as possible. So when I was watching "60 Minutes" tonight and heard the term "credit default swaps" or "CDS" and their assessment that they will be the next shoe to drop in this financial meltdown, I had to get online and learn about what they are.
The long and the short of it is this, its an insurance policy a lender buys to protect against the default of a loan. It is not, however, an insurance product technically so therefore it is not regulated. Not that regulation would have helped.
Why will these CDS be the next problem to face the global economy? Well, the Wall Street Journal estimates the world wide face value of outstanding CDS at about $50 TRILLION!
Consider this, the estimated size of the US Stock Market is $20 trillion. Holy cow. These instruments are covering debt 2.5 times the size of the entire US market? I need a drink.
I am beginning to think the world economy is all a big Ponzi scheme. The more I learn, the more I want to curl up in a ball and cry. Unfortunately this is not an option for me or for anyone else.
I do have one option though, I will vote against every incumbent this fall regardless of party affiliation. I just don't think there is any other solution to this problem. Not only are the enemies at the gate, the enemies are guarding the gate.
Maybe if we start to get some honest people minding the store, we can stand a fighting chance. Maybe with a fresh start our politicians will begin to write laws with some teeth which will deter white collar criminals from ever trying these corrupt practices again.
I beg you all, please join me. Incumbents must go. The only way we stand a chance is if YOU take back your own voting booth.
God Bless America,
EG
erik@exchangeyourgovernment.com
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