Saturday, 12 December 2009

Ex-Fed Chief Paul Volcker's 'telling' Words on Derivatives Industry

Echoing FSA chairman Lord Turner's comments that banks are "socially useless", Mr Volcker told delegates who had been discussing how to rebuild the financial system to "wake up". He said credit default swaps and collateralised debt obligations had taken the economy "right to the brink of disaster" and added that the economy had grown at "greater rates of speed" during the 1960s without such products.

Derivatives ARE financial weapons of mass destruction. These type of contracts must be abolished. The losses incurred by these heavily leveraged gambling devices have been lumped upon the taxpayers of the world. The people should not be made to pay for the foolishness of the Wall Street cretins.

[Posted at the SpookyWeather blog, December 12th, 2009.]

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