P&S and STO Death Blow's Message Board

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Strategies & Market Trends : P&S and STO Death Blow's

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To: ajtj99 who wrote (7393)	9/18/2002 10:48:28 PM
From: mishedlo	Read Replies (1) of 30712

I am not sure you understand the implications. JPM has TRILLIONS in derrivatives. There is a very real (although small) possibility of unknown major financial shocks to all kinds of insurers, reinsurers, etec etc as well as JPM itself if those options implode. All it takes is an enormous credit default (hint Brazil), leaping POG(why can't this happen), and perhaps some sort of interest rate shock. Now that might seem like a lot and it is. But there is no reason why a series of failures can not take place. In fact 2 out of 3 of those seem like a given. Over leverage is what did in LTCM. JPM psositins are much much much larger. M

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