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John Parulis
Do You Really Own Your Stocks and Bonds?
In her latest post, "Web of Debt," author Ellen Brown, details the precipice our global economy is teetering on and how derivatives exposure to the tune of over one quadrillion dollars global, can create a colossal Black Swan event that can propel the world into a severe depression!
If you think your own financial holdings, stocks, bonds and money market funds are safe, think again. Ellen states:
"Under the Uniform Commercial Code (UCC) and the Bankruptcy Act of 2005, derivative securities also enjoy special protections. “Safe harbor” is provided to privileged entities described in court documents as “the protected class.” Derivatives enjoy “netting” and “close-out” privileges on the theory that they are a major source of systemic risk, and that allowing claimants to jump ahead of other investors in order to net and close out their bets reduces that risk. However, critical analysis has shown that derivative “super-priority” in bankruptcy can actually increase risk and propel otherwise viable financial entities into insolvency."
As Marin County and the state deal with out of control house construction and demands for increased spending, bond issuance, and taxes, it would be wise for state legislators to step back, take a breather, and consider the information in this article.