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<blockquote data-quote="DidUHearThat?" data-source="post: 5699080" data-attributes="member: 594758">Some derivatives are legit, or they used to be.&nbsp; If your using your money to leverage against some other interest or market manipulation to create actual wealth that is legit. But somewhere along the way they created these giant hedge funds based on abusrd &quot;derivatives&quot; that were just creative long shot &quot;bets&quot; that only existed on paper.&nbsp; That was just gambling, and usually the &quot;profits&quot; were equally fictitious and were just leveraging credit against the fund to pay &quot;profits&quot; that didn&#039;t really exist.Where we really went wrong was when Greenspan agreed to bail out a giant hedge fund back in the late 90&#039;s because they were &quot;too big to be allowed to fail&quot;, despite they specialized making the most absurd gambles possible.&nbsp; That paved the way more giant hedge funds and expanding derivatives from real estate and pretending they were real investements.That led us to where we are now.&nbsp; Investors blindly pouring money into ponzi schemes without knowing where there money was going and what they were buying.&nbsp; Knowing that as long as it&#039;s &quot;too big to fail&quot; then the gov&#039;t would bail you out no matter how stupid the &quot;gambles&quot;.If the investment is too complicated for you to understand, you shouldn&#039;t put your money into it.</blockquote>

[QUOTE="DidUHearThat?, post: 5699080, member: 594758"] Some derivatives are legit, or they used to be. If your using your money to leverage against some other interest or market manipulation to create actual wealth that is legit. But somewhere along the way they created these giant hedge funds based on abusrd "derivatives" that were just creative long shot "bets" that only existed on paper. That was just gambling, and usually the "profits" were equally fictitious and were just leveraging credit against the fund to pay "profits" that didn't really exist. Where we really went wrong was when Greenspan agreed to bail out a giant hedge fund back in the late 90's because they were "too big to be allowed to fail", despite they specialized making the most absurd gambles possible. That paved the way more giant hedge funds and expanding derivatives from real estate and pretending they were real investements. That led us to where we are now. Investors blindly pouring money into ponzi schemes without knowing where there money was going and what they were buying. Knowing that as long as it's "too big to fail" then the gov't would bail you out no matter how stupid the "gambles". If the investment is too complicated for you to understand, you shouldn't put your money into it. [/QUOTE]

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