derivative is a legal bet (contract) that derives its value from another asset,
such as the future or current value of oil, government bonds or anything else.
Ex- A derivative buys you the option (but not obligation) to buy oil in 6
months for today’s price/any agreed price, hoping that oil will cost more in
future. (I’ll bet you it’ll cost more in 6 months). Derivative can also be used
as insurance, betting that a loan will or won’t default before a given date. So
its a big betting system, like a Casino, but instead of betting on cards and
roulette, you bet on future values and performance of practically anything that
holds value. The system is not regulated what-so-ever, and you can buy a
derivative on an existing derivative.

Most large banks try to prevent smaller investors from gaining access to the
derivative market on the basis of there being too much risk. Deriv. market has
blown a galactic bubble, just like the real estate bubble or stock market
bubble (that’s going on right now). Since there is literally no economist in
the world that knows exactly how the derivative money flows or how the system
works, while derivatives are traded in microseconds by computers, we really
don’t know what will trigger the crash, or when it will happen, but considering
the global financial crisis this system is in for tough times, that will be
catastrophic for the world financial system since the 9 largest banks shown below
hold a total of $228.72 trillion in Derivatives – Approximately 3 times the
entire world economy. No government in world has money for this bailout. Lets
take a look at what banks have the biggest Derivative Exposures and what
scandals they’ve been lately involved in. Derivative Data Source: ZeroHedge.





These infographics are a MUST view.  I’m ashamed that I have been sitting in front
of a computer for so many years and wasn’t aware of the scope of the
unprotected extent of these contracts. 



The bank also
got a SECRET
$2.041 Trillion bailout from the Federal Reserve
during the crisis, beyond
the tax payer bailout.


“  “ got a SECRET
$159 billion bailout
from the Federal Reserve.


“  “ got a $814
billion SECRET bailout
from the Federal Reserve during the 2008 crisis


“  “ received
$1.344 trillion dollar bailout
the Federal Reserve.


“  “ received a SECRET
$2.513 trillion dollar bailout
from the Federal Reserve.


“  “received a SECRET
$391 billion dollar bailout
from the Federal Reserve.


Total of
secret bailout money:   $5.221
Trillion.  This is in addition to the
Public Law 110 – 343 – Emergency Economic
Stabilization Act of 2008 money.