Recently, JP Morgan announced that it was going to take a 2 billion dollar loss from derivatives trades that have gone bad. Some analysts expect the actual loss to exceed 2 billion dollar. Some even put the figure as high as 20 billion dollars. The derivatives bubble has grown very much bigger since 2008, what can cause a derivatives crisis? And how big is the derivatives market? It was reported that the 9 largest banks in the US hold more than 200 trillion dollar in derivatives, that is about 3 times the size of the entire global economy. Visit the link below for an interesting illustration.
Don't play play when the bubble bursts.
When to Drink water ?
.
No comments:
Post a Comment