Oct. 31, 2022
October 31, 2022 \"Swaps\" At a surface level, swapping one security for another is fine. When large financial institutions use swaps to cover massive amounts of leveraged debt, they become a ticking time bomb. Top financial institutions have leveraged themselves to a dangerous degree, and currently the rules allow them to do this all behind the curtains. CFTC is hiding terrifying amounts of leveraged derivatives, and has no obligation to show this data to the public. It is well known that derivatives contracts amount to literally quadrillions of dollars in swaps. What this does is erode trust in the market, as more and more strings are moving behind closed doors. Additionally this can and will become a national security manner when the top financial institutions have no fiduciary obligations past hiding their own mistakes via SWAPS. This is a dangerous recipe and if not curbed, could easily lead to a chain reaction should one counterparty become insolvent. IT IS ABSOLUTELY UNACCEPTABLE that the consequences of a chain reaction like this should fall on ANYONES plate but the CEO's and managers that signed off on these swaps. A bailout from taxpayer money for mistakes from the financial upper echelon has been the easy way out before, but I fear the scale of economic disaster SWAPS and DOOMPS combined will damage millions of Americans savings, retirement, and overall financial stability. Banks, market makers, and hedgefund having the ability to hide derivatives and swaps behind closed doors WILL be the \"Fall of Rome\" if they are not forced to reveal those positions. They are simply too large to allow them to continue. Financial institutions MUST be held accountable, and the decision makers must be the ones to bear the weight.