There is a reason why Warren Buffett once referred to derivatives as "financial weapons of mass destruction". Nobody really knows the total value of all the derivatives that are floating around out there, but estimates place the notional value of the global derivatives market anywhere from 600 trillion dollars all the way up to 1.5 quadrillion dollars.
Keep in mind that global GDP is somewhere around 70 trillion dollars for an entire year. So we are talking about an amount of money that is absolutely mind blowing.
So who is buying and selling all of these derivatives?
Well, would it surprise you to learn that it is mostly the biggest banks?
Total Assets: $1,812,837,000,000 (just over 1.8 trillion dollars)
Total Exposure To Derivatives: $69,238,349,000,000 (more than 69 trillion dollars)
Total Assets: $1,347,841,000,000 (a bit more than 1.3 trillion dollars)
Total Exposure To Derivatives: $52,150,970,000,000 (more than 52 trillion dollars)
Bank Of America
Total Assets: $1,445,093,000,000 (a bit more than 1.4 trillion dollars)
Total Exposure To Derivatives: $44,405,372,000,000 (more than 44 trillion dollars)
Total Assets: $114,693,000,000 (a bit more than 114 billion dollars - yes, you read that correctly)
Total Exposure To Derivatives: $41,580,395,000,000 (more than 41 trillion dollars)
That means that the total exposure that Goldman Sachs has to derivatives contracts is more than 362 times greater than their total assets.
To get a better idea of the massive amounts of money that we are talking about, just check out this excellent infographic.
How in the world could we let this happen?
And what is our financial system going to look like when this pyramid of risk comes falling down?
Our politicians put in a few new rules for derivatives, but as usual they only made things even worse.
According to Nasdaq.com, beginning next year new regulations will require derivatives traders to put up trillions of dollars to satisfy new margin requirements.
Total U.S. GDP was just a shade over 15 trillion dollars last year.
Citigroup Job Cuts: Bank Plans To Slash 11,000 Jobs In Plan To Save Executive Bonuses
Cuts include technology and support jobs around the world
* Consumer banking due for 35 pct of restructuring charges
* Company expects annual expense savings of $1 billion
* Stock rises 4 percent on news
Dec 5 (Reuters) - Citigroup Inc, which has lagged behind its peers in recovering from the financial crisis, said it is cutting 11,000 jobs worldwide, about 4 percent of its staff, to save as much as $1.1 billion a year in expenses.
The move will initially result in pre-tax charges of $1 billion against fourth-quarter earnings, the bank said on Wednesday.
The cuts are Chief Executive Michael Corbat's first major steps to reorganize the company since he took the reins in October after directors pushed out his predecessor, Vikram Pandit.
Secret Space War You Are Not Allowed To Know About
You are NOT allowed to KNOW anything for sure about this Secret Space War because these facts are deeply and narrowly compartment-ed under “Beyond Black” National Security Classifications (Aka NATO Cosmic Top Secret). Only a very small number of folks have received these security classifications and it is these folks alone that have access to these very narrow compartments based on an absolute “need to know” only.
DO NOT EXPECT ANY OFFICIAL USG DISCLOSURES ON THIS TO BE FORTHCOMING SOON
Do not expect American Intel or any DOD contractors (where most such secrets are now held) to be disclosing any actual facts soon about this Secret Space War. And without specific factual disclosures which are “christened” by the major mass media at the USG’s direction, we can only make good guesstimates after reviewing RUMORS from reasonable sources to form reasonable BELIEFS.
YOU ARE FREE TO BELIEVE WHAT YOU WANT TO BUT YOU ARE NOT ALLOWED TO KNOW FOR SURE
WHO REALLY RUNS THE SECRET SHADOW GOVERNMENT (SSG) AND SETS THEIR AGENDA ?
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Fascism was founded during World War I by Italian national syndicalists who combined left-wing and right-wing political views. Fascists have commonly opposed having a firm association with any section of the left-right spectrum, considering it inadequate to describe their beliefs, though fascism's goal to promote the rule of people deemed innately superior while seeking to purge society of people deemed innately inferior is identified as a prominent far-right theme. Fascism opposes multiple ideologies, such as: communism, conservatism, and liberalism.