I had written an article called “How To Make Big Money With Options…Ask The Treasury” back in March.

Well it looks like the Treasury is set again to make some big profits on Citi Bank using derivatives, I’m mean warrants – which are basically options.

Warrants and options are derivative financial instruments which allows a party the right (or option) to take ownership in a company if they chose to exercise their option.  However, as with all things, the financial instruments can be sold.

Selling is what the Treasury plans to do.  They first bought the warrants by giving cash to the bank (in the bailout) for the option to take ownership in companies – such as Citi Bank.  Now to complete the transaction, the Treasury will sell the warrants they purchased at auction and get paid – or profit on the sale of the “derivatives”.

Getting beyond the terminology, the act of buying and selling is pretty simple; and, the product really doesn’t matter.  What does matter is what goes on in Washington as it relates to our everyday lives and freedoms.

See the Dodd-Frank Bill looks to provide “consumer protection” when in reality it limits what the Average Joe can do, or has access to.

The talking points coming out of Washington and the media blasts Wall Street and the private sector and wants to control the private sector activites, yet continues to do the very same things it bashes.

The real risk though is not so much derivatives as much as the lack of knowledge about the products invested in (for the Average Joe).  Therefore, if it is good for Washington and the Treasury…why not do as they do…make money using the same financial strategies and tactics and… bark with the big dogs?