Bank leverage

[Gold Kiwi]

http://kingworldnews.com/kingworldn...Failures,_Disorder,_Massive_Panic_&_Gold.html

Egon von Greyerz: There is only one bank of the top twenty-five banks in the world today that is below 20 times leverage. Every other bank is above. 20 times leverage means that if they only lose 5% on their loan book, they have lost their capital.

Credit Agricole, the largest French bank, has 63 times leverage. This is absolutely frightening. This situation is untenable. Some of these banks will not survive. Of course, central banks are aware of this, governments are aware of this, and they will print money.

The two big Swiss banks combined total 7 times Swiss GDP. The banks have a leverage which is unsustainable, and in many cases are bigger than the countries themselves.

As Jim Sinclair would say, QE to infinity.

 

[Nukz]

 

[Dogmatix]

http://cecaust.com.au/images/Derivatives_2010-11.jpg

http://cecaust.com.au/images/Banks_VS_Derivatives2.JPG

Whoa.

 

[Ilikemetals]

Is this real life, guys?

 

[JDMseaweed]

Since we're on this topic - leverage

I think you guys should watch "The Inside Job (2010) - if you haven't done so already.