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IPFS News Link • Propaganda

Morgan Stanley Sued Over Bad Derivative Bet

• Seeking Alpha

Apart from the vicarious joy of watching one Wall Street bankster suing another, the story seemed to lack a great deal of relevance – given that the amount of the suit (a mere $245 million) is nothing more than “pocket change” in a derivatives market recently valued at over $1 quadrillion($1,000,000,000,000,000). Put another way, the derivatives market was/is 4million times the size of the damages sought after in this suit. However, sifting through the limited details available provides some sobering insights.


This is further support for the assertion by The Telegraph's Ambrose Pritchard-Evans (and others) that Wall Street's claim of only relatively minor “net exposures” in this bankster-casino is nothing but hollow rhetoric (see “A Derivatives Myth Exposed”) . With capital-cushions which aremicroscopic in comparison to the total size of the derivatives market, and with the pay-outs required by individual gamblers in this market leveraged to such extremes, it is a mathematical certainty that this entire market mustimplode if specific performance is required on just a tiny portion of these contracts/bets.


Despite claims by the Obama regime, and the continual reassurances from the media propagandists that the U.S. financial sector has been “saved” through re-inflating the financial sector bubble with $10 trillion in hand-outs/loans/guarantees, the reality is that nothing has been fixed. Two other news items provide further context for this fact.


Two days ago,