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Posts Tagged ‘The “Great Unwind”’

The Invisible One Quadrillion Dollar Equation — Asymmetric Leverage and Systemic Risk

Posted by smeddum on March 18, 2009

 

The Size of the Derivatives Bubble = $190K Per Person on Planet
The Invisible One Quadrillion Dollar Equation
by DK Matai
Global Research, March 16, 2009
siliconvalleywatcher.com

 

According to various distinguished sources including the Bank for International Settlements (BIS) in Basel, Switzerland — the central bankers’ bank — the amount of outstanding derivatives worldwide as of December 2007 crossed USD 1.144 Quadrillion, ie, USD 1,144 Trillion. The main categories of the USD 1.144 Quadrillion derivatives market were the following:

1. Listed credit derivatives stood at USD 548 trillion;

2. The Over-The-Counter (OTC) derivatives stood in notional or face value at USD 596 trillion and included:

a. Interest Rate Derivatives at about USD 393+ trillion;

b. Credit Default Swaps at about USD 58+ trillion;

c. Foreign Exchange Derivatives at about USD 56+ trillion;

d. Commodity Derivatives at about USD 9 trillion;

e. Equity Linked Derivatives at about USD 8.5 trillion; and

f. Unallocated Derivatives at about USD 71+ trillion. Read the rest of this entry »

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