[P2P-F] Not enough money to bail speculative world economy out ? - $235 trillion of OTC derivative leverage by just 4 US Banks

Sat Nov 26 13:55:52 CET 2011

Perhaps someone else can help verify such figures :

If we need to fill the gap for *12 thousand trillion in debt derivatives*,
that would represent
*1'714'286 dollars per person on this planet ... !?*
( *one million seven hundred thousand dollars per person on this planet* -
considering seven billion people )

How much of these debt derivatives have gone bad ?
Why not let the banks go bankrupt, after they created so much leveraged
derivative debt to make profits with ?
Why do we try to bail them out with tax payers money ?
Is this a way to get everyone bankrupt... to the financial institutions? (
while they are the ones that are initially bankrupt ? )

*Who has some kind of count on real figures ?*
( excerpted some figures below )

//

If so much money gets printed out as to bail out / "recapitalize" the banks,
what is the effect on the value of money ? Are these currencies being
debased ? ( see comparison between worth of dollar or euro Vs swiss frank
or gold ? )
Is this part of currency wars ?
http://en.wikipedia.org/wiki/Currency_war

What is the parallel with the pre-second world war period ? ( hyper
inflation potential ? depression ? ... )

///

http://usawatchdog.com/four-biggest-banks-in-america-have-huge-leverage/

excerpts :

According to the latest report from the Comptroller of the Currency,

just four U.S. banks have an eye popping $235 trillion of OTC derivative
leverage. (Click here for the complete Comptroller of the Currency
report.)<http://www.occ.gov/topics/capital-markets/financial-markets/trading/derivatives/dq211.pdf>
As a nation, U.S. banks have a total OTC derivative exposure of $250
trillion. So, the fact that just four U.S. banks have this much leverage
and risk is astounding!  The banks are listed below in order of size and
approximate OTC exposure:

 1.)     JP MORGAN CHASE BANK NA OH

           $78.1 trillion OTC derivatives

 2.)    CITIBANK NATIONAL ASSN

           $56.1 trillion OTC derivatives

 3.)    BANK OF AMERICA NA NC

           $53.15 trillion OTC derivatives

 4.)    GOLDMAN SACHS BANK USA NY

           $47.7 trillion OTC derivatives

Considering that the total assets of these four banks are a little more
than *$5 trillion*, I see a frightening amount of risk with a total
derivative exposure of *$235 trillion! *

*///*

*The Bank of International Settlements pegs the total world
over-the-counter (OTC) derivative exposure at around $600 trillion, but
many experts say the real figure is more than twice that amount.  No matter
which figure you use, it is a gargantuan sum.  OTC derivatives are an
unregulated dark pool of money with no public market.  These are basically
debt bets between two entities on things such as credit risk, currencies,
interest rates and commodities. *

*In effect, the Federal Reserve bailed out the world financial system. Now,
we are right back to square one facing another financial meltdown with
European banks and sovereign debt.  If the Fed spent $16 trillion, why in
the heck is this problem not fixed and why isn’t the world economy taking
off like a rocket?”  The simple answer is it wasn’t enough money.  *

*Further googling :*

*
http://www.google.be/search?gcx=w&sourceid=chrome&client=ubuntu&channel=cs&ie=UTF-8&q=235+trillion+derivatives
*

*as for the 16 trillion the fed spent ( revealed only after a new law
enabled auditing of the fed ? )*

*
http://www.google.be/search?gcx=w&sourceid=chrome&client=ubuntu&channel=cs&ie=UTF-8&q=16+trillion+fed
*
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