We all remember how in late 2008, staggering losses on risky derivatives nearly brought down our entire financial system.
With 43 members of the House and the Senate hammering out a final version of the financial-reform bill, one of the biggest contentions remains what to do about the mind-boggling, vast, and opaque derivatives market owned by the nation's too-big-to-fail megabanks.
The problem is getting worse. Notional amounts of derivatives held by federally insuredbanks have risen to more than $200 trillion.
Source: Office of the Comptroller of Currency as of Dec. 31, 2009.
The blue line you see is the huge profit center of derivatives casinos and squeezing customers. The yellow one is mostly naked credit default swaps, the same instruments for gambling on the bankruptcy of other companies that blew up AIG (NYSE: AIG). Green is what banks use to actually hedge their risk.
Granted, many of these positions cancel each other out, but even assuming the "netting" works, we're still talking more than $20 trillion.
No matter how you measure it, this is a ton of risk, and it's concentrated in five hands:JPMorgan Chase (NYSE: JPM), Bank of America (NYSE: BAC), Goldman Sachs (NYSE:GS), Citigroup (NYSE: C), and Wells Fargo (NYSE: WFC).
Source: Office of the Comptroller of Currency as of Dec. 31, 2009.
There are at least three problems with this picture:
MY GOD WHO IS INCHARGE DOWN THERE? WHY DON'T THE GOVERNORS (LA.AL.MS.FL) DECLARE THE 10th AMENDMENT AND "KICK SOME ASS"???
ReplyDeleteNo 'meltdown' is coming.
ReplyDeleteIt is already here and has been for some time. So many people are hurting so the very few can float around on their yachts and sip their champagne.
You want to know how it's over , today in Las Vegas on a thursday evening, I was in a Walgreens in a busy part of town, I counted 7 Employees and 3 shoppers, that is how you know it is over For sure, Prepare People, you dont have much time.
ReplyDeleteI have spending a lot of time researching what is happening with the oil gushers; from 90% alternate sources and 10% MSM.
ReplyDeleteNow I am convinced it is 100x worse than the average person believes. It will never be stopped. The only hope is a hail Mary pass with a nuke and that would probably collapse the seabed and destroy the Earth's oceans within months.
Just amazing that a hole(s) may eventually turn the world into one huge sewer or worse, an atmosphere of toxic gas.
This is all do the completely unnecessary greed of the elite; their battles among themselves to see who can finally hold the final brass global ring. The platform explosion was no accident. Someone was to gain by an increase in the oil supply, someone would lose billions. The later chose to invest a minor amount of money via sabotage to see deep sea oil exploration would stop.
The output of the gushers are expanding exponentially. The oil is finding new routes to the seabed surface. There is no stopping it. Relief wells are a joke. Like pressing your finger against a leaking bucket with 100 holes, while the bucket is in the process of falling apart.
BP and the other corporate criminals could have stopped this, but they got greedy when they realized there would be trillions in profits from the cleanup.
But the monster got away from them. They uncapped an evil genie.
Now, there is sediment in these oil blasts coming out at 72,000+ pounds per square inch. Think of it as a gigantic sandblaster that is and will cut through any rock or METAL placed around it eventually.
Looking forward, I see a NUKE hail Mary Pass next year and then the world sinking into the abyss 2011+.
When the magnitude of what is REALLY happening finally reaches the apathetic sheeple of the USA they will run into their homes and lock the door in fear and wait for mommy government for help. Mommy doesn't care about you though, so you are orphaned and on your own.
oil barges where helping but if lightning hits the ocean and ignites the oil you could see a massive explosian of oil
ReplyDeletethats right the ocean can explode with flames
i do beleive
Oh shit! You know when things get so, so bad you have to sort of reset and laugh a little or you'll die of anxiety.
ReplyDeleteAs with every hurricane season, this outlook underscores the importance of having a hurricane preparedness plan in place.
Across the entire Atlantic Basin for the six-month season, which begins June 1, NOAA is projecting a 70 percent probability of the following ranges:
• 14 to 23 named storms with top winds of 39 mph or higher, including:
• 8 to 14 hurricanes with top winds of 74 mph or higher, of which:
• 3 to 7 could be major hurricanes of Category 3, 4 or 5 with winds of at least 111 mph.
http://www.msnbc.msn.com/id/21134540/vp/37749380#37749380
ReplyDeletebankers with your money
weeeeeee back to work slave
My fave theory [don tinfoil hat now]:
ReplyDeleteFrom pseudo-newspaper (but with lots of informational links) eutimes.net
http://www.eutimes.net/2010/05/us-orders-blackout-over-north-korean-torpedoing-of-gulf-of-mexico-oil-rig/
is that North Korea launched a minisub full of crack suicide troops from a freighter that diverted out of Cuba that torpedoed the D.H. watched it burn for 2 days, then moved underneath and detonated itself to sink the D.H. all to force the U.S. to use a nuke to seal the well therefor justifying nukes for any "deepwater drilling" nation...also striking a blow at South Korea by sinking a rig owned by Transocean that was funded by Hyundai.
True or not it's better than most movie scripts!
lots of good info at the oil drum for instance:
http://www.theoildrum.com/node/6593
http://www.theoildrum.com/node/6444
http://beforeitsnews.com/news/79/952/The_Gulf_Of_Mexico_Oil_Spill_Is_Making_A_Lot_Of_People_Really_Sick.html
ReplyDeleteread this 40 percent of the gulf under water covered in black tar
hows that for nightmare
msm is useless get out of the gulf before you wont be allowed to leave
and fema traps you
god help you
Where does it say in this article "oil to flow freely"? The barges were halted for 24 hrs. I am just trying to reinforce the necessity of accuracy here. We shouldnt be jumping to wild conclusions and drawing inappropriate conclusions.
ReplyDeleteThat said, I have the feeling that the well may not get stopped and all these clean up efforts, or lack of in many cases, could be for naught.
is there a shark in there, what shark>??
ReplyDeleteBack on topic, folks: I'm old enough and paying attention enough to know about the last derivatives fall-out that happened more than 20 years ago. Derivatives are a bet--like being in a casino--that the price of something will go up or down. It's risky and not safe. Yet municipalities and pension funds and school boards were told they should invent in derivatives.
ReplyDeleteSure enough a number of cities and towns had to declare bankruptcy. I bet some of the current financial problems the states have now may be due not only to falling revenues but funds they put into derivatives. Why would anyone trust the stock market now?
Wow,nice, one of the best read posts so far.
ReplyDeleteI quit my job and moving to Europe for 1 year.
ReplyDeleteI am so through with this nonsense.
Financial meltdown can be faced well but one needs to be prepare for it
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Yes the rates are increasing and economy is going down.I don’t understand who calculates all.
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