In this hour long in-depth interview, the Hat Trick Letter’s Jim Willie discusses the origins of over the counter (OTC) derivatives and how these OTC derivatives are used as a phony foundation (bad collateral) for banks to invest/speculate/loan with the rest of their businesses. Jim traces many of these large, opaque zero sum game derivatives casino type bets/games back to the early 1990s, and explains how they are at the heart of the fraud at many large banks in the US and in Europe.
Willie breaks down credit default swaps and interest rate swaps, and explains why based on his and Rob Kirby’s research that the US can never fully leave ZIRP without a systemic collapse WORSE than 2008.
Shockingly, Willie also explains how the bank balance sheets problems and derivatives crisis are connected to the string of recent murders of middle managers at banks!
Jim Willie’s full MUST LISTEN interview on the impending collapse of the derivatives casino is below: