Monday, October 20, 2008

No everything is not ok

I was concerned about the coming "alt a" morgtgage debacle that is next in the pipeline. We just have to pray that God will help us to be ready for what is to come...

Coming Soon: The $600 Trillion Derivatives Emergency Meeting by Toni Straka

Here is an update on the size of the derivatives market with the latest official figures (.pdf) from the Bank for International Settlements (BIS). Hold your breath, as we are not anymore talking paltry billions but TRILLIONS of whichever fiat currency.

Current emergency meetings on banks and markets are still only in the stage where politicians and central bankers are bickering over how to create a few more hundred billions Euros and FRNs. But toxic MBS pale in comparison to the mushrooming growth of the derivatives market. According to figures released in the quarterly review of the BIS (pp A103) in September the total notional amount of outstanding derivatives in all categories rose 15% to a mindboggling $596 TRILLION as of December 2007…..

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