Forgotten 2007 & 2008 Derivatives
All too many have forgotten 2007 and especially 2008. Personally I do not know what has been solved since then. It seems rather that potentially reality has been postponed. I am not a bear nor a bull. I am a trend follower and try to be logical in my thinking as well as my trading. There should have been a more cleansing of the banking system. However where we stand today is can be easily construed as scary just due to logic. I am referring to a massive debt bubble…as well as the unstoppable leverage of Derivatives. All one has to do is remember Long Term Capital which almost brought down the banking system….
Digest these numbers and let me know how you feel….
Total Assets: $114,693,000,000 (a bit more than 114 billion dollars – yes, you read that correctly)
Total Exposure To Derivatives: $41,580,395,000,000 ( 41 trillion dollars+)
Bank Of America
Total Assets: $1,445,093,000,000 (a bit more than 1.4 trillion dollars)
Total Exposure To Derivatives: $44,405,372,000,000 (44 trillion dollars+)
Total Assets: $1,812,837,000,000 (just over 1.8 trillion dollars)
Total Exposure To Derivatives: $69,238,349,000,000 (69 trillion dollars+)
Total Assets: $1,347,841,000,000 (a bit more than 1.3 trillion dollars)
Total Exposure To Derivatives: $52,150,970,000,000 ( 52 trillion dollars+)
Another fun and interesting fact. Most of these derivatives are based on interest rates. Interest rates go up…You guess what can happen?
Past performance is not indicative of future performance