Derivatives - Worse Than the GFC

Posted | 07/08/2015 / Views | 2986
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Economist and multi-millionaire businessman Doug Casey of Casey Research recently released his “5 unsettling signs we’re headed for a worse crash than 2008” forecast.  His number one reason is America’s banks are in greater danger now than before the GFC.  Here’s what he had to say:

“Remember derivatives? The absurdly complex financial instruments that essentially caused the massive bank failures in 2008… and led to the biggest economic collapse since the Great Depression? Well, what if I told you the amount of exposure to derivatives the top five US banks have - right now, today - is 45% LARGER than it was just before the collapse in 2008? That’s not a typo. The very same people who created the 2008 banking crisis are at it again,- having created another, much bigger ($273 TRILLION) derivatives bubble (versus $187 trillion in ’08).”