Is The Global Financial System On The Brink Of Collapse? Has the Financial Derivatives Meltdown Started?

• “.. my postulation that a massive, ongoing derivatives melt-down has started, as the derivatives lose value, more Treasury collateral has to be posted. … the Fed is engaging in an enormous reverse repo operation in order to prevent the global financial system from collapsing.” – Quote
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• Is The Global Financial System On The Brink Of Collapse?
  by Dave Kranzler, http://investmentresearchdynamics.com/
  A reverse repurchase agreement, also called a “reverse repo” or “RRP,” is an open market operation in which the Desk sells a security to an eligible RRP counterparty with an agreement to repurchase that same security at a specified price at a specific time in the future.  LINK…IMF tells regulators to brace for global ‘liquidity shock’ – LINK.
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  The financial news spin-doctors are attributing today’s abrupt sell-off to a report of a Bloomberg terminal outage and to a report that China has expanded its list of stocks available for shorting.   This explanation for the plunge in stocks globally is so absurd it almost leaves me speechless.
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  I have been postulating since mid-December that the strange volatility we’ve been experiencing in the markets – combined with the most intensive effort I’ve ever seen by the Plunge Protection Team (the Fed + the Treasury’s Working Group on Financial Markets) to prop up the stock market and keep a manipulative cap on gold – is occurring because there’s is a massive derivatives melt-down going on behind the scenes.  The volatility reflects the turmoil and the market intervention in stocks and precious metals reflects the effort to keep the problem covered up.
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  But a good friend and colleague showed me graph this morning that shows my thinking about a derivatives collapse may be correct – click to enlarge: (top of post)
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  read more!

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