Destabilizing a country by derivatives is "counter productive" - Bernanke

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It is counter productive to destabilize or destroy a nation through derivatives according to Federal Reserve Chair Ben Bernanke.

Counter productive. Hmmmm, if it was a military weapon I do believe it would be called something else but as long as it's financial....well, ain't thems just fightin' words.

Obviously, using these instruments in a way that intentionally destabilizes a company or a country is -- is counterproductive, and I’m sure the SEC will be looking into that. We’ll certainly be evaluating what we can learn from the activities of the holding companies.

The SEC? Like Madloff? Bernanke said this during testimony before the Senate Banking Committee.

Chris Dodd asks:

Should there be limits on the use of credit default swaps to prevent “runs against governments?

Hmmmm, let's see, now if these were warships instead of derivatives, I do believe Congress is required to declare war...when it comes to weapons of mass destruction such as financial derivatives, we get a meek mouse, oh gee, well, maybe that's not such a good idea.

According to Bernanke testimony the Fed is looking into Goldman Sachs and others use of derivatives with Greece.

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Financial Innovation cost us $7 trillion dollars

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GRETCHEN MORGENSON in the New York Times is almost channeling the above post, with added detail (trust me, she did not channel this, I'm more surprised the financial press and blogs were not on fire with this latest, screaming in unison, or why we do not have 2 million people marching on D.C. over the lack of derivatives reform....)

Which leads to another question, how do you get the general public to realize these things are equivalent to a neutron bomb and this is really financial terrorism against the nation?

In this latest New York Times Article, she has some great quotes by Martin Mayer:

This insistence that you mustn’t slow the pace of innovation is just childish,” Mr. Mayer said. “Innovation has now cost us $7 trillion,” he added, referring to the loss in household wealth that has resulted from the crisis. “That’s a pretty high price to pay for innovation.