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Message Subject BREAKING: The Fed is sharply increasing the amount of help it is providing to the financial system
Poster Handle jk
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The part of this that is so dominant (yet to me, so purposely hidden from the investing public; not to mention the general public) is the nearly unbelievable level of total derivative turnover.

It has soared!

The latest numbers that I know of, are given from the BIS, reported last month (for June of this year). Assuming my math is correct, it amounts to: $13,667,000,000,000 DAILY. This is the (AVERAGE DAILY DERIVATIVE TURNOVER). It includes both options and futures' derivatives' contracts. It does not include (what is UNREPORTED: which I would guess is substantially more).

Why is that so relevant? Well, for one thing, among the biggest banks that participate in derivative contracts, are American and European banks.

Here's the table from BIS' own disclosures:

[link to www.bis.org (secure)] so you can see if my math is (in the ballpark).

Now, according to Bankrate.com, their article last May, giving the TOTAL ASSETS by the TOP 15 US BANKS (as they claim to use the data from S&P Global Market Intelligence), is as follows (Here's the link too):

[link to www.bankrate.com (secure)]

$13,700,000,000,000!

Hello?

Did anyone get that?

THE TOTAL ASSETS OF THE TOP 15 US BANKS...IS (ROUGHLY EXACTLY EQUAL TO - W/IN appr. 1/4 OF 1% EQUAL TO) THE AVERAGE DAILY DERIVATIVE TURNOVER!

And...the relevance of that, to all of this please, one may ask? Very simple: ANY VERY, VERY SMALL (PERCENTAGE MOVE OF THE TOTAL DAILY DERIVATIVES' CONTRACTS THAT ARE COMING DUE), AND TO THE WRONG SIDE OF THE BANKS' DERIVATIVES HELD...HAS THE POTENTIAL TO BE FINANCIALLY DISASTROUS.
 
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