The future of mortgage lending in the U.S.

derivatives were not a bad idea-a lot of industries in developing countries-papua new guinea, uganda got financing that way
letting innovation come in some areas and recycled into usas centers of financing, trade, industry
leaving hedge funds to get so large
and not giving the sec greater mandates to create quality competition in the 80s was criminal
and the outcome bad for all twenty years later

buyer beware, six point two billion people in the planet
greedy people in usa overconsuming, the system is not at fault, people are, the derivatives system could have constrained the greed instead it amplified and now it is returning
the real culprit-SEC, DONT AUTHORIZE COMPANIES TO ISSUE FIVE MILLION SHARES FOR CEOS TO TRADE GLOBALLY
no one can control that monster, its insane to let everything go so crazy, should have slowed down growth of the derivatives in global companies from 1982-onward

people played along, how many hedge funds are run by transnational people
if there was a real accounting of the systems there would country constraints (such as capital controls) of people who operate transnationally
but most derivatives models are still efficient and excellent, when done well, they are a marvel of complexity
but its impossible to control greed which is a human flaw, and people always want more and the newer and better instead of being happy with the slower and more thoughtful

i grew up in venezuela during the 80s when the structural adjustment programs (SAPs) were implemented by the IMF
the reaction was that they hurt the poor, but that was not their intention, the main problem was the implementors did not want to swallow the bitter pill of their own demise, in other words, the middle and upper middle class did not want their lives accounted for under them, the framework was not the problem, the lifestyles under the constraints which would be greater sociallong-term

the derivatives are just used as way of determining the underlying asset, so, for example, the real value of reserves is the real value on exchange rates, and so on, the value of the indices that are supposed to determine private sector activity are the derivatives, so, you have a mortgage on your property and then a bond for your government, underneath them there is a value that is the realized potential of assets as economic activity increases
but its not as if that will ever be the only truth