I'm only the messenger, I cant vouch for the authenticity but given a semi-educated guess if its true its much worst than even my "glass is half full" view holds.... (But thanks for the response) Time will tell.
The problem is that no one knows how much net exposure the banks have. Even if the banks know their levels of exposure, they certainly aren't going to tell anyone.
The $78T figure is reported in both JP Morgan's 2010 annual report (pp. 192) and the US' OCC 2011 Q2 report on bank trading and derivatives activities so its authenticity is not in question. But that amount is the notional value of the derivative contracts; the total credit exposure for JP Morgan is given as $361billion in the OCC report (Table 4). Links to both reports below if you want to have a read yourself. [imgz=http://forums.silverstackers.com/uploads/762_jpmorgan_derivatives.png][/imgz] Source: JPMorgan 2010 Annual Report [imgz=http://forums.silverstackers.com/uploads/762_top5banks_totalexposure.png][/imgz] Source: OCC 11Q2 Report on Bank Trading and Derivatives Activities
It's not hard to see how 'dollars' quoted in any context are not only a measure of digital ones and zeros, but are now out there on such a scale that even being able to fathom the amount is beyond the comprehension of most people. [youtube]http://www.youtube.com/watch?v=cKKHSAE1gIs[/youtube] I want a kajillion badillion dollars! See how ridiculous it all sounds? At some point people are going to realise that all that crap isn't worth the paper it's not printed on. Next stop? I think you know the rest.
JPM is not really the problem here, it's company's like AIG who are willing to insure these positions. You see JPM does not leave themselves open to these leveraged positions without some sort of hedge or insurance. You can't really single out JPM with large deritive positions though as allot of banks have huge exposure.
AIG was bailed out last time, and it will be bailed out again (& again x 2). The JPMs of the world know this and exploit it. It's like playing monopoly... AIG is like the 'community chest' card for insurance. You don't have the money so you say to the "banker", 'Will pay it back on the next round' or "I.O.U that, Ok?" ... and the game keeps going on.
Perfect analogy. It's my rationale why it will actually be pretty hard for the system to change. I think to those billionaires and the ones controlling the system life is EXACTLY like a game of monopoly. Except there isn't just one game's worth of monopoly cash, they have opened a few more boxes and taken the cash out of those to use as well, as well as dishing out I.O.U's and rigging every card in the chance and community chest pile of cards. The only way the game will cease is if that wretched board and all the playing pieces are destroyed. I have a very philosophical theory about how it will eventually be rendered useless, but it just my belief system coming into play and is a bit 'airy fairy' and most likely will not be seen for hundreds if not thousands of years going by our current way of treating each other and the value people place in material objects over the value of another person.
These people are more than a bit 'off'! She states that people are put to death in red states for participating in "gang bangs" Now for those that may not be aware, only murder is punishable by death, or treason in the US, but it's been over 60 years since that happened for treason. In another recent Kaiser video post here, crazy max says that Texas executes people for "trivial crimes" I'd be laughing my you know what off it wasn't such a disgusting, prejudicial lie. My point is simply this; If these people are going to tell you blatant horrendous lies about people being executed for less than murder and it has to be extremely aggravating to qualify btw, then how an you possibly justify anything they say as truthful. Now that doesn't mean everything they say is a lie, but how are you to know if they're lying. If they'd look into the camera and lie about execution, they'd most certainly lie about anything. I'd call 'em both crackpots and kooks, but then I'd be insulting regular insane people.
In 2008, Lehman Bros., Babcock& Brown etc. landed on 'Mayfair' that had 4 Hotels on it with a huge rental! They couldn't pay up hence they were out of the game. More players should of been out, but they all had IOUs owing to other players hence were allowed to stay. The banker (Ben is his name) took out more paper and the game went on. Round & round they went, and each time they passed "Go" they got $100 (read 'Bailout' money). 3 years later nothing has changed. No ones in jail except Maddoff ('coz someone had to go). The board is now filled with all the property all having 4 hotels on each, and the rent is astronomical on each. IOUs are off the charts, but Ben has taken out more 'paper' to keep the game going. Now picture this. Each country has their own monopoly game going with their own banks etc. They're funded/spotted/cashed up by the taxes from their people. The people are the spectators looking over the shoulders of the players - just like in a casino. The banks within each country have multiple IOUs between other banks on other monopoly games. The numbers on the IOUs are staggering to the point where they sound ridiculous - billion/trillion/quadrillion. As time goes by the players realise that the value of the paper that Ben has 'provided' has dropped lower and lower. Countries/governments that owe each other are now talking about paying each others IOUs via some 'side agreement' like Gold. Ben the Banker doesn't like it and his puppet masters call in the Bouncers (called NATO, CIA etc) to get everyone back in line (Venezuela/Iraq/Libya) The game(s) must continue, so now countries with some 'paper' money left are now lending to other countries that need more playing money (bailout) (re:Ireland/Greece etc.) It all looks pointless. Too many IOUs to everyone & vice-versa. Eventually all IOUs will be called upon but the 'paper' being paid means squat, as 'it's only paper'. Will 'the Fed' casino be allowed to go bust, or is there something afoot with a new 'better' casino about to be opened with 'better paper' backed by something tangible? That time is near.
