Posted on 10/12/2011 2:37:06 PM PDT by Stayfree
In 2009, five banks held 80% of derivatives in America. Now, just four banks hold a staggering 95.9% of U.S. derivatives, according to a recent report from the Office of the Currency Comptroller...
The world's gross domestic product (GDP) is only about $65 trillion, or roughly 10.83% of the worldwide value of the global derivatives market, according to The Economist.
(Excerpt) Read more at moneymorning.com ...
The major banks know there is no way they can collateralize the potential daisy chain failure that Greece represents. So they're doing everything they can to stockpile cash and keep their trading under wraps and away from public scrutiny.
They've insured against a Greek default and now that that's coming to pass, they don't have the bucks to pay off the insurance.
This is utterly meaningless. Unless there is an alien race that we owe the money to, it’s meaningless. If it all defaults, then whatever the total amount of money that is actually available to redeem the insurance claims is distributed to everyone that has a claim, proportionately.
This is utterly meaningless. Unless there is an alien race that we owe the money to, it’s meaningless. If it all defaults, then whatever the total amount of money that is actually available to redeem the insurance claims is distributed to everyone that has a claim, proportionately.
AIG on a transnational level
It does not reflect the actual risk which, owing to leverage, is mere fraction of notional value.
But what about the collateralized risks??? Does anybody really know what the collateral will be worth if stuff starts spiraling down??? Because think of houses here, and how stuff that was supposed to good collateral went to POOF!!!, like 50 cents on the dollar and stuff. Sooo, how many trillions can that be??? I read about this stuff on zerohedge.
Sounds like an improvement. Now when their dirty deeds catch up to them, only four banks will fail, and as long as we don’t waste more taxpayer money bailing them out, we can wash our hands of the mess relatively pain-free.
“This is utterly meaningless. Unless there is an alien race that we owe the money to, it’s meaningless. If it all defaults, then whatever the total amount of money that is actually available to redeem the insurance claims is distributed to everyone that has a claim, proportionately.”
The problem is that there is almost no chance failures will be symmetric.Many institutions will fail before they are able to cover their swaps.Bonus’ will be paid to the end. We will be left holding the bag.
The govs. of the world, in cohorts with the factories which create _money_, out of-thin-air, have been playing borrowing more money than the world has long enough to create a bubble beyond managing. The derivative game was added on top of this already catastrophic mix, in order to multiply the hypothification level for those factories (banks). Not another coincidence. Pied Pipers are US, the good following the bad and the ugly eg. (blind).
Stuart Varney has had this guy on his show alot lately.
When this money system goes down, this is how they’ll intro in the moneyless system with smart chips/cards. The people who want global control of the money system that’s easier to control. Because now you can’t have physical cash, it’s all electronic. Oops, there’s a computer problem, you can’t get to your credits. Perhaps if you vote the right way, we can get your bills paid again and clear up the problems.
Zerohedge is a chicken little sky is falling site.
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