Crazy Debt Derivatives Are Back With A Vengeance! High Risk Debt

in #dtube5 years ago


You thought that the derivatives were gone? Not a chance. You thought they were at least tamed, didn’t you? Well of course not. This began in the 80’s for the most part and just the thought of creating a product out of debt and then spinning it up into other products magically is beyond the wildest dreams of any financial company. These will only grow as time goes on.

Debt backed by consumers paying 40% lure yield-hungry in Canada - BNN Bloomberg
https://www.bnnbloomberg.ca/debt-backed-by-consumers-paying-40-lure-yield-hungry-in-canada-1.1239648
Canadians Are Feeling the Debt Burn - Bloomberg
https://www.bloomberg.com/news/articles/2019-03-26/canadians-are-feeling-the-debt-burn
Once Hated, Now Loved: BBB Corporate Debt Is Back in Vogue - BNN Bloomberg
https://www.bnnbloomberg.ca/once-hated-now-loved-bbb-corporate-debt-is-back-in-vogue-1.1236967


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Whenever there is a financial instrument out there, a derivative product is bound to be created just to be its counterweight. This over-the-edge leveraging scheme has been around for decades and as more and more debts are being created daily, worthless fiats are deployed into the bond and equity markets to stabilize the debt market and satisfy the yield chasing appetite of the masses. There will be a moment when everything snaps and the global debt crisis becomes insolvable.

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