Monday, December 31, 2012

What Is A Financial Derivative?

"Oh Mommy This Is Too Complicated"
Like all Zio-Cons you need to be inundated with minutia so you really don't get the real picture. You can ask 'how did little Isador Blumstein get into Harvard', and get a 20 page answer, and wished you never asked. Or you could get the short answer which is that  the admission officer, the head of scholarships, and the Dean, were all fellow Zionists. 
The mysterious 'Derivative' is no different, it's actually pretty simple. But, if understand the process, that the next question is "Who pulled the con?". And no one wants that question asked.
What Is The 'Option'
In simple terms you find a corvette, and give the owner a deposit while you arrange financing.
For $1,000 he guarantees you can buy the car for $25,000 for the next 30 days. If you don't buy it then he keeps the $1,000.

The Stock Option
You pay a stock broker $.50 cents a share to control GM stock for three months.
·         Call Option ... GM is at $40, your bet is up, and you lose
·         Put option.......GM is At $40, your bet is down, and you win
You buy options on GM at $40 to go down
1000 shares at $.50 = $500 is your cost
1000 shares x $20  = $20,000 is your profit
98% of the time you lose.
Futures Derivatives
You think there is a famine, war, water shortage, or whatever and the price of wheat will skyrocket. Basically you tell farmer Jones you will buy his next year's crop for $5 a bushel, or $50,000. Next you go to the bank and write a contract to borrow $50,000.
Wheat goes to $10, and your $50k contract is worth $100K ---You Win
Wheat goes to $2, your $50k contract is worth $20k ----- You lose $30k

Who Are The Winners?
Normally it will be a trader, who sees a big order, and jumps in before it. The second group would be the manipulators who have inside information.
If you know that an event, like the Lehman bankruptcy, will be announced than you can buy Dow Jones Index futures to go down.
Shorting A Stock
You simply buy a stock to go down. You are the head of AIG insurance and you know you will go bankrupt on Friday, then you short the stock the week before.

Who Runs The Markets
60% of the brokers are Zionists, and 95% of the upper management and hidden owners are Zionists.
Just like the diamond trade, this is their monopoly.
Who Loses
In 1980 there was a Savings and Loan crisis. Zionists lent their buddies billions, who bought real estate, that soon collapsed. The money was from small depositors, so if the bank closed the average Joe lost his life savings. The government (taxpayers) stepped in and paid off the depositors.
·         Abe Bloom got $20 million for his warehouse
·         The market collapsed and the bank is sitting with a $2 million dollar warehouse
·         The taxpayer has to give the bank the $18 million dollar difference
Then the warehouse was sold at fire sale prices, and the Zionists re-bought the same warehouse for 10 cents on the dollar.

These Are The Basic Derivatives
Derivatives are a fancy word for using small sums to control large purchases. The companies now in trouble used derivatives to buy housing loans, and when they went south, the companies had giant liabilities. You buy a $500,000 house, put $10,000 down (derivative) and housing collapses,  you now have a $200,000 house and a giant loss of $300,000, all from $10,000.
Lehman brothers bought $100 billion in housing loans from a bank, the market crashed, and the loans are valued at 50%. Because they would put $.02 cents down, and they controlled the rules, the exposure was enormous.

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