Wait, the Derivatives market is worth $1,200 TRILLION dollars???

[pa28]

53. I think it's a very big deal indeed.

Most derivatives cancel each other out and are adequately collateralized but let's just say that 1% of these instruments are floating around based on fraudulent collateral. Based on the malfeasance we've seen that's probably not a really big stretch is it?

Sounds like a reasonable risk but that adds up to 12 trillion and quite of few of these instruments are being held by too big to fail banks. When another financial crisis comes along the bad will show up overnight and the bills will have to be paid.

The US public has allowed all of our skin to be hung on a hook for these people. Our reaction in terms of new regulation, enforcement and prosecution seems absurd in the face what we've committed ourselves to. You've got to laugh really because this problem needed to be addressed while the iron was hot in 2008 and 2009.

People who made a sincere attempt at exposing taxpayer risk were dismissed as anti-capitalist losers who probably lived under a bridge.