My next target is to try and highlight the derivatives market, and the status.  The size of the derivative market and in particular the infamous Credit Default Swaps represent a gigantic ponzi scheme of artificial liabilities between banks around the world. Quietly banks have been unwinding those contracts, which by the way they could only do if there is no substantive asset behind them.  One dollar of debt can be translated into $3 + of derivatives as if by magic. This from the Financial Times in January that I missed then.  But read on – this is only the beginning … Continue reading Banks are unwinding derivatives