Thank goodness. It couldn’t have happen a day too soon.
NBC Nightly News (03-09-09) Tent Cities of Homeless Springing Up In Bad Times
Tent City, USA
Oct 02 2010
Apr 21 2010
Introduction To Weather Derivatives
by Felix Carabello, Associate Director, Environmental Products, Chicago Mercantile Exchange
Weather: Risky Business
It is estimated that nearly 20% of the U.S. economy is directly affected by the weather, and that the profitability and revenues of virtually every industry – agriculture, energy, entertainment, construction, travel and others – depend to a great extent on the vagaries of temperature. […]
In a 1998 testimony to Congress, former commerce secretary William Daley stated, “Weather is not just an environmental issue; it is a major economic factor. At least $1 trillion of our economy is weather-sensitive.”
If there were only some way, to “Hedge that Bet” — against the ever present risk of Foul Weather.
No Worries — Where there’s a Market Risk, there’s always a Wall Street Way!
Apr 20 2010
How does your Obligation to make your Mortgage Payments, turn into some unseen Investor’s “Income Stream”?
Easy — thanks to Derivatives and CDO’s (Collateralized Debt Obligation).
For the mere Price of Admission, those unseen Investor’s get to divvy up your Mortgage Payments, among themselves — long as they “promise to pay off” that Debt, WHEN, for whatever reason, you are no longer able to make those Obligatory Payments …
Piece of Cake!
Geesh … WHAT could ever go wrong with this picture?