Thursday, March 26, 2009

Shadow Economy Measured at $684 Trillion

David Corn, Chief of the Washington Bureau for Mother Jones Magazine, says he is "officially scared."

If the $684 trillion figure for over-the-counter derivatives recorded by the Bank for International Settlements is accurate, we all have reason to be scared.

Now I know why Nobel Prize Economist Paul Krugman says he is in despair over the Obama administration's bank rescue plan and the European Union President says the bailout plan is "the road to hell."

More than anyone else, we can thank former Texas Senator Phil Gramm for assuring that these derivatives were unregulated.

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