"Derivatives" on any financial institution's books means OPM

[Jeff Tumbarello]

This guy "got it" early on the high-risk arena and spoke well to the problem in early 2008. I have no idea where he's been since, but he runs some sort of investment outfit and seems to have survived so far.

The same high-risk stupid bets had brought down the system several times in the past, the most famous being the Great Depression era, which made the high-risk idea rather unpopular for quite a few years. However unfortunate it might be, if a horrible idea worked for a while and was effective for the thieves 'til it went bust, you can plan on it doing the Phoenix act sometime later.

http://www.youtube.com/watch?v=WshxmT3Fawo

"Derivatives" on any financial institution's books means OPM (Depositor/Investor/Lender/Fed/Treasury) vested deeply in LBOs, "High Yield" Bonds (AKA "Junk"), ETFs, puts/calls in equities/commodities/currencies, and a lot of real "derivatives" (bets based on equations in every manner of index movements) and all other sorts of investments which would make a Depositor or "Investor" run for the hills if it were more clearly described. Hedge funds handle a lot of a Bank's derivatives, which are supposed to be equally balanced as short/long bets on the same issues/indexes, leaving some room to swing in favorable directions as the pendulum merits. The reality is, they get FAR too long or short based on analysis (quants) or "gut feelings", the market turns against them and we all wake up broke (again).

NOBODY whose whole enterprise is based on SECURING other people's money should EVER be allowed to buy a single share of stock.

Betting on ANY Derivatives should carry at least the death penalty for the CEO and all above Sr. VP, with a mandatory two-year execution process and a fine for the executioner if the bastard dies before the end of his execution process.