financial meldown

The pyramid scheme that is the bond market is collapsing around us.
the scale of this meltdown is truly astonishing. the bank of
international settlements puts the "Amounts outstanding of over-the-
counter (OTC) derivatives" at 516 TRILLION dollars.
(516,000,000,000,000.00)

http://www.bis.org/statistics/otcder/dt1920a.pdf

while the bonds traded in exchanges amount to another 30 trillion. (us
gdp was 13.13 trillion in 2006).

The media is attempting to play the scale of this disaster right down.
for example, the bbc says that

"...the mortgage bond market is worth $6 trillion, and is the largest
single part of the whole $27 trillion US bond market, bigger even than
Treasury bonds."

http://news.bbc.co.uk/1/hi/business/7073131.stm

Spin is not going to work. this crash is not due to 'sentiment'. We
are looking at the evaporation of hundreds of trillions of dollars.

mark my words. this is going to be messy.


.

Relevant Pages

  • Re: financial meldown
    ... counter derivatives" at 516 TRILLION dollars. ... while the bonds traded in exchanges amount to another 30 trillion. ... The media is attempting to play the scale of this disaster right down. ... single part of the whole $27 trillion US bond market, ...
    (sci.econ)
  • Re: financial meldown
    ... while the bonds traded in exchanges amount to another 30 trillion. ... single part of the whole $27 trillion US bond market, ... or sell then buy future transaction is accounted for $100000 in your ... Derivatives are bets were, there are always two counterparts -the ...
    (sci.econ)
Quantcast