Follow Up on Derivatives

I have had requests from readers to follow up "Could Wall Street Derivatives Lead to Murder". For basic information on derivatives, you may refer to Wickipedia. This will give you the basic premise of these "futures" trading items. You can develop implications of the subject by reading some of the web sources I found.

I invite you to read the following:

The Wall Street Journal "Market Watch" article by Paul B. Farrell on March 10, 2008. The title is "Derivatives the new 'ticking time bomb'".

Also: Minerva School, MA & PhD in Critical Thinking Blog, article of September 6, 2009 titled Wall Street Now Creating "Death Scam" Derivatives.

Also: October 7, 2009 article by Moon Kil Woong's Instablog titled "Derivatives and Securitization: 'Is your life insurance about to become detrimental to your health?'"

Also: Time magazine article by Michael Scherrer, April 14,2010 titled "On Derivatives, The White House and Senate Dems Hold A Line Against The Bank Lobby".

Also: Seeking Alpha article by Avery Goodman "Jail Time for Wall Street's Derivatives Writers?" published April 25, 2010.

In "futures" the element of time is used to secure a price on a commodity at a point in time in the future, so a farmer could stabilize his costs before his harvest by fixing the contract rate. On Wall Street, this element of time has morphed into life insurance policies... where payout happens when the insured dies. "Time" here is hardly the original intent of "harvest".

I am amazed at the range of the readers who follow this blog. I hope this give you insight into my thinking.

Have a nice day.

People rock!