Hi ArtVision;
Yeah, I left that one alone. One problem at a time, I figgered. Also, when you start talking derivatives most people start gettin' that 1000-mile stare
Fact is, pumping
Trillions, at most of the "too big to fail" banks is nothing but a complete rip-off. The ones hip-deep in derivatives are
hopelessly insolvent.
Simple case in point:
in 2002 J P Morgan held stockholder assets totalling roughly
$49 Billion.
They also held approximately
$120 Trillion (yes, with a T) in derivative notes.
In other words they are approximately
750:1 upside down!
To bring that home:
Imagine having a $48,000 net worth and your debts totaled $36,000,000.
Gee, you'd best keep up the payments, huh?
Lastly, the last figure I heard on it, the total in derivatives, held by the world's major banks was something like $1.2 Quadrillion. (Important to learn a new word, every day, huh?)
Fred