xmlns:og='http://ogp.me/ns#'. The Digibandit: Alan Greenspan - NOW we Understand

Monday, March 02, 2009

Alan Greenspan - NOW we Understand

The derivatives market today is $531 trillion, up from $106 trillion in 2002 and a relative pittance just two decades ago. Theoretically intended to limit risk and ward off financial problems, the contracts instead have stoked uncertainty and actually spread risk amid doubts about how companies value them.

The contracts allowed financial services firms and corporations to take more complex risks that they might have otherwise avoided — for example, issuing questionable mortgages or excessive corporate debt. The fact that they can be traded in one sense limited risk but also increased the number of parties exposed when problems emerged.

Throughout the 1990s, some argued that derivatives had become so vast, intertwined and inscrutable that they required federal oversight to protect the financial system. But the financial industry lobbied heavily against such measures, and won backing from important figures, including Alan Greenspan, chairman of the Federal Reserve from 1987 to early 2006.

Remember when all the financial wizards would sit around wondering what Alan meant by that look in his eyes when he said "Hmmm" - or when he farted after saying "interest rate" - sniffing to see which way his gas floated - or what he said when he mumbled "isa ghriia" - What? - What are you saying oh genius seer -God - of all matters fiscal?"

Well - now we know what he was saying :

"Ha Ha Ha -you goyisha Jew haters -I'm going home to fuck Andrea -and kish meir in tuchas (kiss my ass) all you waspy dickheads."