
3 Things That Will SINK the Economy
Rich Dad Radio Show: In-Your-Face Advice on Investing, Personal Finance, & Starting a Business
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The Rehypotication of Derivatives Market
The nine trillion effect money has been leveraged into a quadrillion of derivatives. The interest, the yield to maturity on the treasury bill that you buy in the secondary market is lower than what the Fed will give you for free just by picking up the phone. So why would you ever buy a treasury bill on the secondary market with a lower yield than what theFed will hand you? Well, the answer is because you can rehypoticate it. That's cause is liquidity crisis. And that's what you're warning everybody about right now. But I remind people, okay, September 15 Sunday, September 15 2008, Lehman Brothers,. 500 bankruptcy electronically on a Sunday night.
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