Ellen Brown offers an important critique to our Global Open Table.
Responses welcomed and shared
Peter
———- Forwarded message ———
From: Ellen Brown from Web of Debt <ellenbrown@substack.com>
Date: Thu, 15 Feb 2024 at 14:33
Subject: Defusing the Derivatives Time Bomb: Some Proposed Solutions
To: <peterchallen@googlemail.com>
| Forwarded this email? Subscribe here for more Defusing the Derivatives Time Bomb: Some Proposed Solutions ELLEN BROWN FEBRUARY 15th READ IN APP The “protected class” is granted “safe harbor” only because their bets are so risky that to let them fail could crash the economy. But why let them bet at all? By Ellen Brown / Original to ScheerPost This is a sequel to a January 15th article titled “Casino Capitalism and the Derivatives Market: Time for Another ‘Lehman Moment’?”, discussing the threat of a 2024 “black swan” event that could pop the derivatives bubble. That bubble is now over ten times the GDP of the world and is so interconnected and fragile that an unanticipated crisis could trigger the collapse not just of the bubble but of the economy. To avoid that result, in the event of the bankruptcy of a major financial institution, derivative claimants are put first in line to grab the assets — not just the deposits of customers but their stocks and bonds. This is made possible by the Uniform Commercial Code, under which all assets held by brokers, banks and “central clearing parties” have been “dematerialized” into fungible pools and are held in “street name.” This article will consider several proposed alternatives for diffusing what Warren Buffett called a time bomb waiting to go off. That sort of bomb just detonated in the Chinese stock market, contributing to its fall; and the result could be much worse in the U.S., where the stock market plays a much larger role in the economy. Continue reading here. LIKE COMMENT RESTACK © 2024 Ellen Brown 548 Market Street PMB 72296, San Francisco, CA 94104 |
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