Can Someone explain the 1.5 Quadrillion derivative bubble? | TigerDroppings.com
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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

# Can Someone explain the 1.5 Quadrillion derivative bubble?

I was just watching a small piece on one of the news channels and an analyst was mentioning this gigantic 1.5 quadrillion(never heard the number) bubble that will burst soon and all currencies will be worthless he said. Then we'll all be wearing tin foil hats and trading silver coins for snickers bars.....I know its probably just nonsense....but can anyone explain the gigantic derivative bubble he mentions

Mo Jeaux
LSU Fan
NYC
Member since Aug 2008
14765 posts

re: Can Someone explain the 1.5 Quadrillion derivative bubble?
InB4 Bitcoins.

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GumboPot
LSU Fan
Saints Fan
Member since Mar 2009
27302 posts

re: Can Someone explain the 1.5 Quadrillion derivative bubble?
He's probably referring to the notional value of said derivatives and probaly doesn't know what that means.

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RCDfan1950
LSU Fan
United States
Member since Feb 2007
12214 posts

re: Can Someone explain the 1.5 Quadrillion derivative bubble?
BF...I suspect that you'll have to apply Quantum Physics math, in order to "explain" that.

Bottom line. Stock the pantry.

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Powerman
LSU Fan
Corpus Christi, TX
Member since Jan 2004
121037 posts

re: Can Someone explain the 1.5 Quadrillion derivative bubble?
I'd be willing to bet he has some 120 dollar survival guide to tell you

It's bullshite

PuntBamaPunt
Vanderbilt Fan
Member since Nov 2010
7325 posts

re: Can Someone explain the 1.5 Quadrillion derivative bubble?
googling it turned up some quality sites

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bigblake
Member since Jun 2011
1155 posts

re: Can Someone explain the 1.5 Quadrillion derivative bubble?
(no message)
This post was edited on 4/6 at 4:06 am

ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Can Someone explain the 1.5 Quadrillion derivative bubble?

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dante
LSU Fan
Kingwood, TX
Member since Mar 2006
9529 posts

re: Can Someone explain the 1.5 Quadrillion derivative bubble?

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PrimeTime Money
USA Fan
Houston, Texas, USA
Member since Nov 2012
11008 posts

re: Can Someone explain the 1.5 Quadrillion derivative bubble?
Derivatives are highly leveraged. This happened because of the availability of cheap money that can essentially be gambled with.

It is a consequence of the quarter of a percent federal funds rate.

So yeah, derivatives are a problem.

That is what collapsed AIG, Lehman Brothers, Goldman Sachs, etc.

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UncleFestersLegs
Columbia MD
Member since Nov 2010
1739 posts

re: Can Someone explain the 1.5 Quadrillion derivative bubble?
quote:

It's bullshite

At the time of it's bankruptcy, Lehman had a \$35 trillion notional derivatives portfolio. What part of that is bullshite?

ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: Can Someone explain the 1.5 Quadrillion derivative bubble?
So...back to my original question....do I begin constructing my bunker,hoarding food and silver coins....or do I keep on as is

UncleFestersLegs
Columbia MD
Member since Nov 2010
1739 posts

re: Can Someone explain the 1.5 Quadrillion derivative bubble?
Central bankers can keep the balls in the air a lot longer than you think. Look at Japan. They have been doing QE for almost 15 years, have a debt to GDP ratio more than triple the US and they still haven't collapsed.

TupeloTiger
LSU Fan
Tupelo,Ms.[via Bastrop,La.]
Member since Jul 2004
3060 posts

re: Can Someone explain the 1.5 Quadrillion derivative bubble?
Obama and the Sec. of the Treasury Printing paper money to cover the 1.2 Trillion in deficit spending,instead of modest cuts, combined with very low interest rates is causing this. The borrowing is cheap, practically no interest costs, produces a lot of derivatives that are cheap, that Wall Street uses for investments. It's getting bigger and bigger and could collapse in a few years. If Obama continues this for 4 more years, I predict colapse in about 5 or 6 years. It'll be just like Greece and Western Europe.

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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Can Someone explain the 1.5 Quadrillion derivative bubble?
quote:

and all currencies will be worthless

bitcoin FTW

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