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Next bubble: $600 trillion?
Cities, states, universities could sink from monster derivatives meltdown
As interest rates begin to rise worldwide, losses in derivatives may end up bankrupting a wide range of institutions, including municipalities, state governments, major insurance companies, top investment houses, commercial banks and universities.
Defaults now beginning to occur in a number of European cities prefigure what may end up being the largest financial bubble ever to burst – a bubble that today amounts to more than $600 trillion.
The Bank of International Settlements in Basel, Switzerland, now estimates derivatives – the complex bets financial institutions
and sophisticated institutional investors make with one another on everything from commodities options to credit swaps – topped $604 trillion worldwide at the end of June 2009. ---“
See:
http://www.wnd.com/index.php?fa=PAGE.view&pageId=143057
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