Derivatives are legalized gambling by big banks, and are what caused the financial panic back in 2007/2008.  It is a bet on the future.  You can bet on anything.  You can bet it’s going to rain tomorrow, and someone can bet that it won’t.  The loser has to pay off.  As you can see below, the big banks are very heavily exposed to derivatives.  In the U.S. alone, and banks around the world are in the same situation, there are $225 trillion in derivatives in an economy with $18.8 trillion in GDP (Gross Domestic Product).  What do you think is going to come of that?  Do you think when the due bill comes that the losers are going to be able to pay their debts?  The housing derivatives of 2007 are what caused the market crash back then.  Remember Collateralized Debt Obligations (CDO’s)?  Now, we have another housing bubble, plus a debt bubble in the bond market, plus a government spending bubble, plus a student debt bubble etc. etc.  Are you ready to live in abject poverty like they are already doing in Venezuela?

Citigroup:

Total exposure to derivatives – $47 trillion

Total assets – $1.8 trillion

JP MorganChase:

Total exposure to derivatives – $47 trillion

Total assets – $2.5 trillion

Goldman Sachs:

Total exposure to derivatives – $41 trillion

Total assets – $860 billion

Bank Of America:

Total exposure to derivatives – $33 trillion

Total assets – $2 trillion

Morgan Stanley:

Total exposure to derivatives – $28.6 trillion

Total assets – $814 billion

Wells Fargo:

Total exposure to derivatives – $7 trillion

Total assets – $1.9 trillion