Something wicked comes this way...

Derivatives the new 'ticking bomb'Buffett and Gross warn: $516 trillion bubble is a disaster waiting to happen - Paul B. Farrell

Taken from article above:

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Data on the five-fold growth of derivatives to $516 trillion in five years comes from the most recent survey by the Bank of International Settlements, the world's clearinghouse for central banks in Basel, Switzerland. The BIS is like the cashier's window at a racetrack or casino, where you'd place a bet or cash in chips, except on a massive scale: BIS is where the U.S. settles trade imbalances with Saudi Arabia for all that oil we guzzle and gives China IOUs for the tainted drugs and lead-based toys we buy.

To grasp how significant this five-fold bubble increase is, let's put that $516 trillion in the context of some other domestic and international monetary data:

U.S. annual gross domestic product is about $15 trillion
U.S. money supply is also about $15 trillion
Current proposed U.S. federal budget is $3 trillion
U.S. government's maximum legal debt is $9 trillion
U.S. mutual fund companies manage about $12 trillion
World's GDPs for all nations is approximately $50 trillion
Unfunded Social Security and Medicare benefits $50 trillion to $65 trillion
Total value of the world's real estate is estimated at about $75 trillion
Total value of world's stock and bond markets is more than $100 trillion
BIS valuation of world's derivatives back in 2002 was about $100 trillion
BIS 2007 valuation of the world's derivatives is now a whopping $516 trillion

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Do you see something out of sync here? If not then better take some MATH 101 classes. What this tells me is that $2.5 trillions on bailout and stimulas spent so far is meager chump change compared to whats headed our way. It reminds me of this song...

Double, double toil and trouble;
Fire burn, and caldron bubble.
Double, double toil and trouble
Something wicked this way comes
Eye of newt, and toe of frog, Wool of bat,
and tongue of dog,
Adder's fork, and blind-worm's sting,
Lizard's leg, and owlet's wing,
Double, double toil and trouble;
Fire burn, and caldron bubble.
Double, double toil and trouble
Fire burn, and caldron bubble.
Something wicked this way comes!