According to several sources the market for so-called “credit default swaps” last year alone was nearly equal to the total global GDP, around 70 trillion dollars by some estimates. Yet these derivatives have no discernible “origin” or value.
People aren’t sure whether they are capital vehicles, insurance vehicles, investment vehicles, all three, or none of the above. However, what is becoming very clear to me is that they, along with many of the other “creative” financial vehicles are nothing more than a bold mass counterfeiting scheme based on a very simple premise and set of conditions that are not at all “complex.” The problem is not that their values are “unknowable,” but that we know what their value is—worthless. Our problem is that we’re not willing to contemplate socially or personally the ramifications of what we know. This is why big lies work-- the bald truth is harder for most to bear.
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