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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (50614)	3/27/2001 7:46:15 PM
From: Real Man	Respond to of 94695

Derivatives = high leverage bets. The growth of these instruments has been insane. JPM has 22.5 Trillion dollars of those, or about the size of the World economy. While it was a bull market, you could place one-side bets and win big. When it goes wrong way, however, it goes FAST. Now, you can calculate JPM 84 Billion Market cap as a % of their derivative play: ~0.4%. How wrong can you get before you get wiped out? JPM is #1 candidate. Other 7 major US banks have "only" $ 14 Trillion extra in total. Still 1.5x GDP of United States. Derivatives grew from 70 Trillion to 100 Trillion from 1998 to 2000.