Full Financialization: Many Central Banks & Large Banks Are Large, High Risk Gambling Hedge Funds – YouTube

Many financial commentators talk about how the US and global economy is too financialized but they do not go into details. There is too much debt globally. How much? Over $250 trillion and so much (that’s still growing especially in the last 4 months) that it cannot ever be mathematically paid back. Over the Counter (OTC) derivatives are another major problem. There’s many hundreds of trillions of those that banks and hedge funds like to leverage up (borrowing from repo and Dollar funding markets like Euro Dollar) to gamble on. All it takes is one large counter party to not pay back their loans and/or their bets and the system is risking total collapse. This is why every 7-10 years there has been a collapse since Long Term Capital Management (LTCM) which blew up on OTC derivatives and leveraged bond and currency rrades going bad. Central banks are even getting large trading volume discounts to gamble more in derivatives! Central banks get discounts for trading EVERYTHING through CME Group and Comex http://gata.org/node/14385It’s Settled: Central Banks Trade S&P500 Futures https://www.zerohedge.com/news/2014-0…Lately, large banks are making record profits trading currencies as banks Currency-Trading Revenue Surges to Highest in a Decade https://www.investing.com/news/forex-…

via www.youtube.com