Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: BigBull who wrote (81201)	12/9/2000 10:08:59 PM
From: isopatch	Respond to of 95453

12/7 Contrary Investor is worth repeating for those who missed it: Let's start with an apertif(g) "The Bank for International Settlements (BIS) in Basel Switzerland produces a semi-annual survey that puts the notional value of the global OTC derivatives market at $94 trillion as of June 2000. Clearly from the above numbers, the US banking system accounts for over one third of this global exposure. Moreover, global interest rate contracts outstanding are estimated at $64 trillion in notional amount. The US banks are closer to 50% of this number." Then...there's this little treat! "The merger of Chase and JP Morgan has incredible consequences if you ask us. Together, this entity will account for close to 60% of total US banking system exposure to derivative vehicles. Talk about concentrated systematic risk. This possibly sets a new definition." Oh what the hell, why not read the whole thing. Wall Streeters are well know for saying, "The trees don't grow to the sky". However, it would appear the house of cards that comprises the tower of derivatives in our banking system has... contraryinvestor.com Imagine the inflation generated as the buck tanks because the Fed is forced to debase the currency with a truly biblical flood of liquidity when this unsustainable structure collapses. What would follow would make the Great Depression look like a kids birthday party! Only question is can enough taxpayer money be illegally diverted into the PPT slush fund to buy and retire a large enough fraction of this derivative mountain to prevent the mother of all meltdowns? Now there's a guess for someone a lot braver about making forecasts and predictions than little ole moi(G). Isopatch