“Just think for a moment about what is below. It is beyond the beyond. It is the total pile of greed on the planet. It is the size of the financial weapons of mass destruction now starting to fire. The damage this is going to do to the man in the street might end with capital punishment for all identified derivative traders. The paper changers have gone way too far this time.
The size of the over the counter credit derivative non-market in which notional value becomes real value in a meltdown is unbelievably huge. That means junk all the intellectual arguments. The numbers you see here become absolute value numbers in a meltdown situation. When specific performance is called for it is all called for, a slice, portion, or any other geek speak is not acceptable.
This insures the injection of liquidity in amounts never before even imagined. Tighten your seat belts.
I would like to show you the size of this financial weapon of mass destruction. In the credit default swaps business there are only 14 meaningful dealers, of which only 5 count. Think of that. Dwell on that “minimum dealer numbers – maximum financial destruction.” What a web they have woven!
These numbers have been mainly created by 5 of the most prestigious names in finance. All 5 will fail unless college boy Ben and the rest of the Central Banks light a fire to the US dollar. These houses cannot fail without throwing the entire financial system into a catastrophe so they will not fail at any cost to the public.
The Bank for International Settlements reported the notional amount on outstanding OTC credit default swaps to be $20.4 trillion in June 2006, up $10.1 trillion (99%) from June 2005.
The Office of the Comptroller of the Currency reported the notional amount on outstanding credit derivatives from 882 reporting banks to be $5.472 trillion at the end of March, 2006.
The International Swaps and Derivatives Association (ISDA) reported the notional amount of credit default swaps grew by 101% over the year 2006, to $34.4 trillion.
This makes the total US debt look like kindergarten lunch money.”
