Gentleman, we're screwed.

[FelixDeCat]

http://finance.yahoo.com/news/...=3&asset=TBD&ccode=TBD

Commercial banks rack up $9.2 billion in derivatives trading losses in the 4th quarter:

NEW YORK (AP) -- Commercial banks lost $9.2 billion trading derivatives during the fourth quarter as the credit crisis intensified, according to a report released Friday by the Office of the Comptroller of the Currency.

Losses mounted as commercial banks had to take additional write-downs on the value of investments they held, offsetting gains from actual trades.

The collapse of Lehman Brothers Holdings Inc. and the near-failure of American International Group Inc. in September touched off one of the worst parts of the credit crisis, which carried over into the final three months of the year. Credit markets froze up, further pressuring the value of many types of investments.

Derivatives contracts include interest rate and foreign exchange contracts as well as credit default swaps -- a product that is essentially a bet against the performance of other types of investments. Credit default swaps have been at the heart of the credit crisis and a main reason for problems at Lehman and AIG.

The total value of derivatives at commercial banks jumped 14 percent to $200.4 trillion as financial firms changed their operating status to commercial banks after the collapse of Lehman in an effort to stay in business. Among those changing their status were investment banking giants Goldman Sachs Group Inc. and Morgan Stanley.

For the full year, commercial banks recorded their first-ever industrywide loss on derivatives trading, losing $836 million in 2008, compared with revenues of $5.49 billion in 2007, according to the OCC.

So it took about $100,000,000,000.00 (one hundred billion dollars) in derivatives losses to kill AIG, and now we are finding out that in 4th quarter 2008 alone (just 90 days) all banks LOST another $9,200,000,000 on more derivatives losses?

AND now for the best part - there is a total of $200,000,000,000,000.00 (two hundred trillion) in derivatives out there?!

I remember when Ed Liddy was defending CDOs as a "viable product" when a congressman was asking them to stop creating that garbage to begin with. He just kept defending them. HEY ED, IF/WHEN THAT $200 TRILLION comes due THERE IS NOT ENOUGH MONEY ON THE ENTIRE PLANET TO COVER IT! :|

What a mess they have made.


You got pee and ennn in my OT.
- vi
Off Topic Mod

 

[leftyman]

hopefully the Chinese will continue to buy our useless debt.

 

[honkydory]

Just give them a couple trillion and they will make it back, I swear.

 

[Barfo]

F'n great.

 

[hiromizu]

This should be a non issue. In other words, it'll buff right out and we'll all be at home as if nothing happened.

 

[Platypus]

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[IceBergSLiM]

how is this my problem?

 

[DeadByDawn]

How much of that is real money? I mean it's leveraged how much, and if it collapses the net result will be massive deflation correct?

 

[randay]

Originally posted by: IcebergSlim
how is this my problem?

only if you plan to retire well

 

[FelixDeCat]

Originally posted by: DeadByDawn
How much of that is real money? I mean it's leveraged how much, and if it collapses the net result will be massive deflation correct?

I think so. If these "bets" continue to turn out badly for these clowns, you might want to stock up on wheel barrels. Because it will take a wheel barrel of cash to buy some bread in a hyper inflation / deflation environment.

 

[compuwiz1]

Originally posted by: IcebergSlim
how is this my problem?

It's not, until the entire financial system, as you know it, collapses and upsets your personal econ-structure.

 

[AstroManLuca]

Originally posted by: Platypus
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THIS
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THIS

 

[K1052]

Originally posted by: AstroManLuca

Originally posted by: Platypus
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THIS
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YES
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YES

 

[BladeVenom]

Originally posted by: IcebergSlim
how is this my problem?

Because you the taxpayer, are going to be bailing out all these financial institutions who squandered everyone's money on "magic beans."

 

[Baked]

Originally posted by: leftyman
hopefully the Chinese will continue to buy our useless debt.

The Chinese will own this country in no time.

 

[hiromizu]

Originally posted by: Baked

Originally posted by: leftyman
hopefully the Chinese will continue to buy our useless debt.

The Chinese will own this country in no time.

Nee Howw~!

 

[SAWYER]

http://i29.photobucket.com/alb...s/obama-getdamoney.gif

 

[ViviTheMage]

Originally posted by: Baked

Originally posted by: leftyman
hopefully the Chinese will continue to buy our useless debt.

The Chinese will own this country in no time.

traitor!

 

[K1052]

Originally posted by: Baked

Originally posted by: leftyman
hopefully the Chinese will continue to buy our useless debt.

The Chinese will own this country in no time.

Could we sell it to the Japanese instead?

The panty/beer/rubber tit vending machines could be really handy.

 

[leftyman]

wait till the repo man shows up.

 

[hiromizu]

Originally posted by: K1052

Originally posted by: Baked

Originally posted by: leftyman
hopefully the Chinese will continue to buy our useless debt.

The Chinese will own this country in no time.

Could we sell it to the Japanese instead?

The panty/beer/rubber tit vending machines could be really handy.

Not to worry, they have imitations that are much cheaper.

 

[Corporate Thug]

Originally posted by: Sawyer
http://i29.photobucket.com/alb...s/obama-getdamoney.gif

you're my hero. I can't stop laughing.