Sunday, May 6, 2012


What is a Derivative?

The short answer, A Derivative is anything that is valued based upon some other asset.  In other words, it derives its value from something else.

I watched a very interesting program on PBS (Public Broadcasting System) in USA, Frontline  Money, Power and Wall Street.

We all know what happened there, lack of ethics and pure greed.  High flyers pulling in millions of dollars a year based on selling derivatives.  If you don't understand what a derivative is don't worry neither did the people selling them truly understand.  They just knew how to work the system, sell them and make their commission, what happened down the road was no worry of theirs.

When Goldman Sachs did a huge deal with the Greek government how did other brokerage houses view it, heck how did we miss that golden apple of a deal.  Well guess what now the European Economic Community is having to bail them out.

Who bailed out Wall Street the tax payer and who lost their homes common people the tax payers.  We the people who have lost jobs, or work twice as hard for less money. Every day we go out and pay for their high flying.

That's all I',m going to say about it, because we have always lived a simple life and now it has to be simpler then ever.  Plus I have never put my trust in governments or this system.
Mathew 6:19-21

But the series of programs was quite interesting, you might want to take a look.


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