Unloosening A Cannon…. "D-Day" For Credit Unions!

Totally risk free…
Just ask Jamie Dimon!

Well, before the day is out our federal regulator, "of late maniacally obsessed with risk",  will have purposefully increased the risk of loss for the vast majority of credit unions for the benefit of the very limited few…. 

NCUA HAS RIGHTFULLY RESISTED DERIVATIVES IN THE PAST:  WHY RISK IT NOW?

Derivatives do not reduce risk as proclaimed by advocates and the NCUA.

For Four Reasons:

Lehman Bros. !

1.  Risk can not to be eliminated by derivatives; risk can only be transferred for a limited period of time.

Goldman/TBTF !

2. Well-managed companies use derivatives to maximize the acceptable level of risk desired on their balance sheets - not to minimize the level of risk.

AIG !

3.  Derivatives are rarely a perfectly matched offset to the underlying risk and contain entirely subjective bets as to the future direction of and degree/rate of change in a risk exposure.

Fan/Fred!

4.  Derivatives serve to perpetuate the continued existence of unsound financial instruments and practices in the marketplace.

NCUSIF !

… will it be possible "to hedge" our 1% NCUSIF deposit against future losses?

(Just wondering… might be a good "bet"… perhaps a sure thing!)