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

To: William H Huebl who wrote (75125)	4/1/2007 12:51:09 PM
From: Real Man	Read Replies (1) \| Respond to of 94695

BK warning - it is coming, thanks to mortgage defaults. Could even be later this year. Here is who the entity causing futures spikes really is, and my guess is it's not the Fed; the market is not going down only because of that futures support: occ.treas.gov "The operational infrastructure improvement effort now focuses on equity derivatives in addition to credit derivatives." "Derivatives activity in the U.S. banking system is dominated by a small group of large financial institutions. Five large banks represent 97% of the total notional amount, 79% of total revenues and 88% of net current credit exposure." And, here is why the interest rates set by the Fed and telegraphed in advance to these 5 banks are important: "Bank derivative contracts remain concentrated in interest rate products, which represent 82% of total notionals. " Here is the result of this cooperation of the Fed and the Fed banks that own it: "U.S. commercial banks generated record trading revenues of $18.8 billion in 2006, versus the previous record of $14.4 billion in 2005. " Here is why if the problems in the mortgage sector spread, we'll have a BK, and why we had 200 Dow points down on 2/27 because of that: "Credit default swaps represent 98% of the total amount of credit derivatives. "