The 2 Billion Dollar Loss By JP Morgan Is Just A Preview Of The Coming Collapse Of The Derivatives Market
According to the Comptroller of the Currency, the "too big to fail" banks have exposure to derivatives that is absolutely mind blowing. Just check out the following numbers from an official U.S. government report....
JPMorgan Chase - $70.1 Trillion
Citibank - $52.1 Trillion
Bank of America - $50.1 Trillion
Goldman Sachs - $44.2 Trillion
So a 2 billion dollar loss for JP Morgan is nothing compared to their total exposure of over 70 trillion dollars.
Overall, the 9 largest U.S. banks have a total of more than 200 trillion dollars of exposure to derivatives. That is approximately 3 times the size of the entire global economy.
It is hard for the average person on the street to begin to comprehend how immense this derivatives bubble is.
So let's not make too much out of this 2 billion dollar loss by JP Morgan.
This is just chicken feed.
This is just a preview of coming attractions.
Soon enough the real problems with derivatives will begin, and when that happens it will shake the entire global financial system to the core.
My apologies to readers of this blog: I was on vacation for 10 days.
Economic Alert
" I can say with 100% certainty that most of us will live to see the climax of the breakdown, and that this breakdown is about to enter a more precarious state before the end of this year. "
James Howard Kunstler
"The whole world, in fact, has got something like a giant hairball stuck in its craw. The hairball is composed of filaments of lies wound over a core of supernatural indebtedness. The lies are promises that the debt will be paid back."
Amidst Protests Formula One Teams on EdgeAt least two teams have reported encounters on the road between the circuit and the capital city of Manama, where the teams are based this week. On Wednesday night, a vehicle carrying personnel from the Force India team passed through an area where Molotov cocktails and debris were thrown. According to the BBC, a tear-gas canister fired by the police entered the vehicle. Two Force India employees elected to leave Bahrain ahead of Sunday’s race. Speaking afterward about the incident, the team driver Nico Hulkenberg questioned the decision of Formula One authorities to race in such a volatile climate, saying that teams “shouldn’t have been put in this position.”
Force India elected to forgo the second practice session on Friday rather than risk driving back to Manama in the dark.
On Thursday night, en route to Manama after a practice session, Sauber mechanics encountered flaming debris in the middle of the road. Their shuttle bus was able to drive to the right of the debris, the team noted in a statement.
Bahrain’s crown prince, Salman bin Hamad Al Khalifa, said Friday at a news conference that canceling the race for a second consecutive year would empower “extremists.”
Protest at F1 Headquarters
