CRISIS 2008 ... The trail of financial gunpowder ...

Since the mid-1970s with the pressure of financial deregulation by NEOLIBERALS on their path by the carousal of economic freedom without measuring the likely subsequent burdens ... and after economic freedom avenge initiates a significant change in the financial market context with the insertion DERIVATIVES with the following definition:

1. Financial derivatives Financial instruments, based on future quotations, whose return depends on the value of other assets such as stocks, bonds, commodities or commodities.

The very definition states that it derives from something else in the case of the last derivation crisis that came from mortgages. Financial derivation was the only way to get real estate mortgages on the financial market but by starting NEOLIBERAL CAROUSAL without any legal regulation was starting the prescription for economic disaster ... which generated the following diagnosis

• excessive liquidity;
• excessive leverage of financial institutions;
• use of complex financial instruments;
• inadequate assessment of the risks inherent in credit operations.

The graphic below will dazzle us better this context ...

Prepared according to Ipeadata data

After the COMMODITIES BOOM and even the actions of various countries was affected by SEVEN QUARTERS followed demystifying the fallacy of neoliberalism of self-regulation of the market without any governmental action to reverse economic chaos ... proving that without an intervention in the economy would go to SEVERA contamination of SYSTEMIC CHAOS IN ALL ECONOMY ...

MEAT COMMODITIES


PRODUCT MOST PERCEIVABLE WITH THAT VOLATILITY AND MAGNITUDE IN PRICE SWING IS LESS IMPACT;
THEREFORE HIS LESS MEASURABILITY WAS 42.11% FALL.


COFFEE COMMODITIES


LESS PERCENTAGE PRODUCT WITH THIS VOLATILITY AND MAGNITUDE IN PRICE SWING IS BIGGEST IMPACT

THEREFORE ITS BIGGEST MEASURABILITY OF 113.37% FALL.

The graph above demonstrates that the damaging effects that fall on the REAL ECONOMY FALLING the FALACY of economic freedom into which neoliberals put their pseudo arguments ... therefore the economy has the need for regulation to curb the financial binges sponsored by neoliberalism and according to the magnitude of the economy as the US spread to the WHOLE WORLD OF SYSTEMIC RISK ... with the spread of derivative contracts around the world the derivatives boom triggered the financial gun fuse that burst after BOOM OF REAL ESTATE MORTGAGES IN JUNE 2006 ( SUMMER IN NORTH HEMISPHERE).

In the specific case of the COMMODITIES of the chart above the contagious lasted SEVEN CONSECUTIVE QUARTERS which had an abrupt fall of COMMODITIES COFFEE ...

The 50 kilogram bag price (equivalent to £ 110.23) decreased from $ 165.55 to $ 143.59 in just one quarter (last quarter of 2008);

The recovery in which it aimed for the price of $ 204.57 (third quarter 2009).

The big question lies in LIMBO because without a legal framework to tie limits to the financial market the next BUBBLE will be unmanageable to a magnitude similar to what occurred in 1929 ... but the "EXPERTS" ARE OMITTING because not even have the real notion of to come ... but who LIVE ... will feel the effects on the skin ...

ENGLISH LANGUAGE EXPLANATION BOX

1929 CRISIS

MEAT (COMMODITIES MEAT)

CAFE (COMMODITIES COFFEE)

THE GRAPH IS RELATED TO THE BRAZILIAN ECONOMY THAT IN COMMODITIES BOOM HAD VARIOUS BENEFITS BY A LARGE SUPPLIER OF VARIOUS COMMODITIES BUT IN THE CRISIS OF 2008 MADE ANY-CYCLIC POLICIES DO NOT CALL FOR SYSTEMIC RISK TO ARRIVE IN BRAZIL.