Jobs

Where the jobs? / or How to invest and help no one but yourself: 1. Collateralized Loan Obligations, Banks aggressively offer loans and then sell the debts to others. These others in turn sell the debts to still others. 2. Stock market and currency opportunities for speculation are moving large amounts of money from one set of holdings to another. It is no longer families indentified with certain industries or the people who worked their way up from the bottom to the top and finally become owners. Now it is pure gambling in which because the size of the operations the government cannot allow failure. 3. Derivatives. An informal agreement between two or more parties under which payments, or payoffs, are to be made between the parties often on future investments that have not yet been secured. Many investors will set up a derivative contract with another investor on debts outstanding to speculate on the value of the underlying asset, betting that the party seeking insurance will be wrong about the future value of the underlying asset. Speculators look to buy an asset in the future at a low price hoping to sell an asset in the future at a higher price. Credit derivatives are privately held negotiable bilateral contracts that are used in managing exposures to credit risks by transferring a credit risk to some one else. This is a bet that one can make money before the investment fails. Hedge Funds Hedge Funds are the use of advanced investment strategies in derivatives or leveraged investments. This is unregulated and unprotected selling securities from a third party, buying the assets and selling them back or sill another party. In order to borrow heavily then to buy still more shares to sell them at a profit. A firm with more debt than equity is leveraged. Buying up bad mortgages, in the hopes some one will buy you out, or the government will bail you out. Collateral Debt Obligation (CDO) this credit protection allows selling of bad credit. Failure leads to super profits if you buy debts at a fraction of their original worth and then sell them still below their original value but at profit. The last guy standing hopefully will be bailed out buy the government. Either giving you loans at such low interest rates that when things turn around you own assets now worth more than what you paid or government insures your losses. Think about this next time you talk to a fiscal conservative talking about paying down our debts by cutting social programs, only to give more to the financial investors, i.e. the criminals who got us into this mess into the first place.