NICHOLAS DUNBAR ~ THE DEVIL’S DERIVATIVES ~ 2011

~ RTDIA ~ Ready To Do It Again

~ TBAHFMCTB ~ The Bankers And Hedge Fund Managers Celebrating Their Bonuses

~ TBTMBS ~ The Bets That Made Banking Sexy

~ IWCA-CDS-RTBLT-CM-IR-S-O-C-TDWLT-UFD:TDOLOB-IWABLBIPOSEL-TCOPFRNHAQPTCBTED ~ It Was Called A – Credit Default Swap – Rather Than Being Linked To – Currency Markets – Interest Rates – Stocks – Or – Commodities – These Derivatives Were Linked To – Unmitigated Financial Disaster: The Default Of Loans Or Bonds – It Was A Bit Like Buying Insurance Policy On Someone Else’s Life – The Cost Of Protection From Risk Now Had A Quantifiable Price That Could Be Traded Every Day

~ T-S-S-D-O-H-T-LB ~ The – Sad – Strange – Death – Of – Hate-To-Lose Banking

~ TFAOR ~ The False Apostles Of Rationality

~ BRTMTT ~ Bending Reality To Match The Textbook

~ AD-SHIYL ~ A Derivatives-Shaped Hole In Your Life

~ A-FL-W-PF ~ A – Free Lunch – With – Processed Food

~ TDAEMP ~ The Debt And Equity Morality Play

~ BATG ~ Barbarians Among The Gatekeepers

~ STU ~ Selling The Unsellable

~ RC ~ Regulatory Capture

~ PTB ~ Passing The Bucks

~ ‘SI’/’LD’-’LL’ ~ “Stated Income” / “Limited Documentation” – “Liar Loans”

~ P-T-EL ~ Primed-To-Explode Loans

~ A-BCDS ~ Asset-Backed Credit Default Swaps

~ NINJA ~ No Income / No Job / No Assets

~ TF-SMOTFSWNOACOMA ~ The Full-Scale Meltdown Of The Financial System Was Now Only A Couple Of Months Away

~ BITS ~ Banking In The Shadows

~ T-S-I-WL-R-AM-S-DITE-‘R’-FESOTIP ~ The – Self-Interest – Was Less – Rational – And More – Selfish – Driving Individuals To Extract – “Rent” – From Each Step Of The Innovation Process

~ BBPM ~ Banking By Photocopy Machine

~ TCOASA-H/L/U-O-TBG-TF-WAYU ~ The Consequences Of Allowing Such A – Huge / Leveraged / Unregulated – Off-Track Betting Game – To Flourish – Were As Yet Unimagined

~ PGTB ~ Pop Goes The Bubble

~ MCD ~ Massive Collateral Damage

~ ‘STBYOV…’ ~ “Sorry To Bother You On Vacation…”

~ CITS ~ Cracks In The Street

~ L-A-D-O-PD ~ Life – And – Death – On – Planet Derivative

~ WHBMRBIU-BPHOBODITS-GQTWOU-APU-PD ~ What Had Been Measurable Risk Became Immeasurable Uncertainty – By Pouring Hundreds Of Billions Of Dollars Into The System – Governments Quenched The Wildfire Of Uncertainty – And Propped Up – Planet Derivative

~ JTATOTB ~ Just Throw A Tarp Over The Body

~ ASOILADMAAD-AOTUPUBTG-PFBT ~ A Series Of Increasingly Large And Desperate Merger And Acquisition Deals – All Of Them Ultimately Propped Up By The Government – Paid For By Taxpayers

~ BHMHRC ~ But How Much Has Really Changed?

~ UB ~ Unchastened Banks

~ TM-NCTATBRIB ~ The Multi-Nationals Continue To Argue That Bigger Really Is Better

~ DS(M)U-THITTRATHT-TOIP-TCOC-TUATWOC ~ Derivatives Still (Mostly) Unbound – The Huge Incentives To Take Risks And Then Hedge Them – The Opacity In Pricing – The Contagion Of Collateralization – The Uncertainty About The Web Of Counterparties

~ BB ~ Buyers Beware

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