U.S.A. Banks Have 700 Trillion Dollars Of Exposure To Derivatives

Are you prepared for the coming economic collapse and the next great depression? The collapse of U.S. financial markets sparked a stock market crash in 2008. You would think investors would’ve learned their lesson, but with global financial markets drowning in debt, the world is once again on the verge of a financial collapse in 2016. The coming financial collapse could be worse than anything seen before.  Banks today are bigger and more opaque than ever, and they continue to trade in derivatives in many of the same ways they did before the crash of 2008, but on a larger scale and with precisely the same unknown risks.  We can’t say when this will happen.  We can’t say which bank or which particular instrument will trigger the debacle.  What we can say with virtual certainty is that if we continue as now is that it will happen.  Because the scale of the trading is larger, and because the depleted government treasures are not well placed for another huge bailout, the impact will be worse than 2008.  The lack of transparency in derivative trading that now totals in notional amount more than $700 trillion. That is more than ten times the size of the entire world economy. Yet incredibly, we have little information about it or its implications for the financial strength of any of the big banks. Wall Street doesn’t trust big banks Wall Street already reflects its distrust of the big banks.  Even after a run-up in the price of bank stocks this fall, many remain below “book value,” which means that the banks are worth less than the stated value of the assets on their books. This indicates that investors don’t believe the stated value, or don’t believe the banks will be profitable in the future—or both. The Derivatives Disaster The Derivatives Disaster
	The Derivatives Disaster