i'm put the clock on it
here comes financial armenia
one day one
wire and they want
as the first air reporting the story
at mac but it's not a reality but
systems the first i would tell you about it unquote
will keep track going forward
here's what i have to say tick tock tick tock now look
i've said it before
uh... eat you know the size of the service market is hilarious fits
it is different reports on it
the last one says that it is six hundred and thirty-nine
trillion dollars
that over a solo artist comical right i believe it's ten times the size of the
entire world economy
project is also called the swamps market so
there's this giant swaps market where they're taking insane risk with our
money
and uh...
now dot frank bill was supposed to regulate that
and i mean it didn't this much regulation a scintilla regulations
but the bank said all you know what
it's ok we don't have to follow that scintilla radiation wyatt
organ we call missus swaps market
we met futures market well that's not
party regulation also futures yes that's what it
so larry begin to explain attractive als o david maleness explains futures
traders are required to set aside
less collateral on their trains
an incentive to place larger bats
so they understand that
they're moving to the futures market
because
they can put down less collateral and make a larger bats now if you put down
less money and you make bigger bats guess what happens
is if you make a tiny little error you don't have the money to back it up
that's how we got a message to the other day
they're putting that on steroids
this is going to be awesome
under the new regulatory regime all in a few of the so-called block trades
wesley disclosed to other market participants
enabling regulators
to monitor the scope of the regulation
about this is what they're trying to get rid of it
so they say
now even those title changed will not be monitor
well great
that will cause trouble at all either
continue it
by contrast which future trades must be disclosed
and which can be kept private
are generally left to be determined by the private companies that operate the
exchanges a clap clap clap
built by the irish
don't worry the banks will regulate themselves
and those exchanges
that get all their money problems banks
well i'm sure will be very tough in regulating the
in other words goodnight irene mary will be no regulation
okay
furthermore without frank
losses on swatch trades are limited to parties that engage in that trade
but in the futures market the consequences of an ill-fated that can
spill out to miri players
from the brokers who engineered a position student clearing houses that
executing trades the other server apart
so before if party a party me do a deal
it goes bad and one of them yes recruitment nal
it's a broader
so more banks suffer because of that rate
the clear housing clearing houses suburb is a veteran so when there is an
explosion
it knocks more people out
and then those that more people out
and then financial armageddon
i'm not a plane and i'm not overstating it
remember
it's a six hundred and thirty-nine
shrill yen-dollar market
wrote a continuing
james calling c_e_o_ jeevan capital markets aside those thoughts
this case is quote as a market gravitates to cheaper platform and it's
cheaper because it's unsafe
that creates a risk for everyone
so here's a c_e_o_ of a guy who's running
a company in this field say
don't do it
would phone do it's a really bad idea and it's gonna blow up on all of us
but they're step aside step aside
all right there's one more to attack and thinking more
and widening rejeen that favors financial futures over financial swaps
runs the risk
of increasing systemic risk
by systemic risk they mean risk that applies to the in prior system
one thing goes down
it's a bunch of dominoes and they all go down
here are people inside bloomberg instead yelling capital markets a
dogs picked
the swamps market was indecisive and install it the cause of two thousand
date
now we're disarming even riskier that affects even ev bigger portion of the
markets
dictated to a wrecked it depicted
let me tell you guys
who's going to bring this disaster to you
civic group called the sea and equal
the why it is so important they're setting up the exchanges where they do
not regulate the banks and the regulates the
and they get to do all this trading
and this is where it's gonna blow up
now you will look back later after blows up to this video don't listen to any of
the other noce essentially right wing will blame it on the government later
they blame it on this that went on that until you have a time
it's gonna happen and it's going to happen
at the c_n_n_
one of the iran there on the chicago marked mercantile exchange
an intercontinental exchange
which is
probably the riskiest place on earth
anything that comes out of the intercom alex change watch out
okay
and by the way here's something fun there about the by
the new york stock exchange
so who do you think things a rescue before
wait till you get a lot of them
actor wants
tick tick tick tick
protective gear we're on day one
i don't know when it'll blow up i don't know if it'll be two months two years
i don't know how long they can keep the other with duct tape but i get into this
if you take this amount of risk
with this amount of money
he will bring down the entire global financial system
s_l_s harsh
but it isn't there all connected
there's no way around it
it's a pure or a matter of logic
you know that the workbook