Beginning of the End of Capitalism

It is estimated that approximately a quadrillion dollars ($1,000,000,000,000,000) are involved in derivative trading per year, a 0.2% transfer tax would create $2 trillion in revenue. This would dampen speculation, the cause of many of the problems on Wall Street, and pay down our national debt.

it is true - Derivative values have exceed global GDP. It is a dangerous situation. http://www.dailyfinance.com/2010/06/09/risk-quadrillion-derivatives-market-gdp/

Big Risk: $1.2 Quadrillion Derivatives Market Dwarfs World GDP - DailyFinance

www.dailyfinance.com

One of the biggest risks to the world's financial health is the $1.2 quadrillion...See More

 

Sounds impossible right - because it is. The banks and Wall Street have come together to create one of the most dangerous monetary manipulation ever. We thought the housing bubble was bad, what till the day of reckoning for derivatives. There is relatively little to no material wealth supporting the speculated value of them.

 

This guy says it all - As the value of securities became more closely tied to the subjective and compromised opinions of analysts and rating agencies, Wall Street banks become more closely aligned to the world of art than the notion of commerce described by Adam Smith or Milton Friedman. 

 

We are on dangerous ground and there is no where to fix it without someone and/or country making an enormous sacrifice.  The housing bubble was only a small fraction of the entire faulty concept.  It redefines capitalism and falsely bloats economies.