SPECULATIVE DERIVATIVES ARE ABOUT TO COLLAPSE

How does this affect every-day Americans? Continue reading “SPECULATIVE DERIVATIVES ARE ABOUT TO COLLAPSE”

Speculative derivatives markets are in the process of collapse–with serious consequences for us all. This will eventually have broad-reaching ramifications for every sector of business, not least of which is in valuations for bankruptcy proceedings and other court proceedings.  

Directly and heavily impacted will be the insurance industry.  Insurers with significant exposure to speculative derivatives include: Lincoln National Corp., Ameriprise Financial, AIG, Prudential Financial, and Voya Financial.

This is a problem that has been brewing since Sept. 16, 2019 with break-down of the Federal Reserve’s overnight repo market.  Months later, even with massive Fed repo injections, commercial paper purchases by the Federal Reserve, announcement of $800 billion Fed QE program, announcement of $1 Trillion IMF QE program and a Fed Discount Window rate cut to .25%, the US and European equity markets opened the day limit down–which triggered circuit breakers to temporarily stop equities trading.

How does this affect every-day Americans? Continue reading “SPECULATIVE DERIVATIVES ARE ABOUT TO COLLAPSE”