Greg Hunter: Four Biggest Banks in America Have Huge 50:1 Leverage!

• I have warned about the financial weapons of mass destruction: derivatives market. This is a financial casino run by the banksters. It is totally opague, OTC market and entirely unregulated. No one really knows how much money is at risk in this market. Some are of the opinion that it is about US$1,500 Trillion. No amount of money can bailout this mess, the western financial system is in. The end result is: the FedRes will QE to infinity! The USD and all major currencies are toast. I do not believe minor currencies will survive the hyperinflation onslaught.
  –
  Four Biggest Banks in America have Huge Leverage
  By Greg hunter’s USAWatchdog.com
  I keep hammering away at the fact the Fed doled out $16 trillion in the wake of the credit crisis of 2008.  This is an enormous sum that is greater than the all goods and services produced in the U.S. in a single year.  Domestic banks and companies got the money, right along with foreign banks and companies.  In effect, the Federal Reserve bailed out the world financial system.  Now, we are right back to square one facing another financial meltdown with European banks and sovereign debt.  If the Fed spent $16 trillion, why in the heck is this problem not fixed and why isn’t the world economy taking off like a rocket?”  The simple answer is it wasn’t enough money. 
  –
  The Bank of International Settlements pegs the total world over-the-counter (OTC) derivative exposure at around $600 trillion, but many experts say the real figure is more than twice that amount.  No matter which figure you use, it is a gargantuan sum.  OTC derivatives are an unregulated dark pool of money with no public market.  These are basically debt bets between two entities on things such as credit risk, currencies, interest rates and commodities.  According to the latest report from the Comptroller of the Currency, just four U.S. banks have an eye popping $235 trillion of OTC derivative leverage. (Click here for the complete Comptroller of the Currency report.)  As a nation, U.S. banks have a total OTC derivative exposure of $250 trillion. So, the fact that just four U.S. banks have this much leverage and risk is astounding!  The banks are listed below in order of size and approximate OTC exposure:
  –
  …. for the full article click here!

end