Ready to bail out the 1.2 quadrillion derivatives market?

[IndyDave1776]

Only 19 posts and Godwin's Law is already in effect.

Impressive!

Godwin's Law - As an online discussion grows longer, the probability of a comparison involving Nazis or Hitler approaches 1.

Correct observation, but just because it is described with derision that doesn't rule out the possibility. After all, the stream of history we are now experiencing has similarities with that as well as with the French revolution of 1789.

 

[Solitaire]

Correct observation, but just because it is described with derision that doesn't rule out the possibility. After all, the stream of history we are now experiencing has similarities with that as well as with the French revolution of 1789.

My wife's bum looks like J-Lo's, but that doesn't mean she can sing or dance worth a damn.

 

[IndyDave1776]

My wife's bum looks like J-Lo's, but that doesn't mean she can sing or dance worth a damn.

This is where we enter into speculation. Generally, parallel historic trends are repetitive. No guarantees, but definitely cause for caution. My perspective is to hope and work for the best and at the same time be cognizant of the possibility (perhaps probability would be a better word choice) that the best will not happen, and perhaps even an unmitigated disaster will happen. Being prepared for any potential outcome is always a wise choice.

No comment on your wife's voice or rear end. I would hate for a thread to appear on INGO in a few days about how a certain member got knots beat in his head by another member's wife!

 

[John Galt]

Only 19 posts and Godwin's Law is already in effect.

Impressive!

Godwin's Law - As an online discussion grows longer, the probability of a comparison involving Nazis or Hitler approaches 1.

Not saying we're going to end up like Nazi Germany, but the path to tyranny is well trod and pretty narrow. Only a fool would ignore the similarities of how tyranny has began, and all of it pretty much the same way for thousands of years. How it ends up depends on how soon the People wake up and find the courage to do whatever is necessary to combat the evil.
"Those who cannot remember the past are condemned to repeat it." - George Santayana

 

[spec4]

At some point, the sooner the better, the socialists in Washington will not be able to increase or maintain the free stuff. Socialism will collapse and it could be nasty for awhile.

 

[smokingman]

The Coming Derivatives Panic That Will Destroy Global Financial Markets

JPMorgan Chase
Total Assets: $1,812,837,000,000 (just over 1.8 trillion dollars)
Total Exposure To Derivatives: $69,238,349,000,000 (more than 69 trillion dollars)
Citibank
Total Assets: $1,347,841,000,000 (a bit more than 1.3 trillion dollars)
Total Exposure To Derivatives: $52,150,970,000,000 (more than 52 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 (more than 44 trillion dollars)
Goldman Sachs
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 (more than 41 trillion dollars)
That means that the total exposure that Goldman Sachs has to derivatives contracts is more than 362 times greater than their total assets.


How do you think we will bail out that mess?


This is the reason they saved AIG.It would have triggered a cascade failure in the derivatives markets.

 

[poptab]

The Coming Derivatives Panic That Will Destroy Global Financial Markets

JPMorgan Chase
Total Assets: $1,812,837,000,000 (just over 1.8 trillion dollars)
Total Exposure To Derivatives: $69,238,349,000,000 (more than 69 trillion dollars)
Citibank
Total Assets: $1,347,841,000,000 (a bit more than 1.3 trillion dollars)
Total Exposure To Derivatives: $52,150,970,000,000 (more than 52 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 (more than 44 trillion dollars)
Goldman Sachs
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 (more than 41 trillion dollars)
That means that the total exposure that Goldman Sachs has to derivatives contracts is more than 362 times greater than their total assets.


How do you think we will bail out that mess?


This is the reason they saved AIG.It would have triggered a cascade failure in the derivatives markets.

Say it taint so.

 

[mrjarrell]

There's no bail out if that market goes down. There isn't enough money in all the economies on the planet to cover them. They'd be ****ed. And so would we.