Breaking News on

Respond to this messageReturn to
Original Message
  • The coming blow-up of financial system after the fall of the Derivatives in trillions
    • economy (no login)
      Posted May 31, 2012 8:19 AM

      By Silver Dollars Bullion
      29 May 2012

      Harvey fears that the losses on JP Morgans interest rate swaps could already be $100 billion, and COULD BRING DOWN THE WHOLE FINANCIAL SYSTEM OF THE WORLD!

      When asked what type of risk JP Morgans derivatives crisis currently poses to the financial system Harvey responded:

      Weve been following this (JP Morgans derivatives) for quite awhile. Rob Kirby in 2009 wrote a great paper The Elephant in the Room, where he describes the huge amount of interest rate swaps that JP Morgan has underwritten, and its probably in excess of $50 trillion- of the $70 trillion in derivatives that they hold.

      These interest rate swaps are really a bet where they go long on long term rates (T-bonds), and short the short term treasury bills. That forces the purchase of bonds, which in turn causes long term rates to fall. Thats basically why long term rates are low for the United States, but Europes rates are higher: its because of the manipulation by JP Morgan.

      What Jim Willie has shown is that JP Morgan right now is unwinding some of these interest rate swaps. If theyre unwinding these things, together with the huge losses from the IG9 (which were losses from the underwriting of the European credit default swaps), THIS COULD BRING DOWN THE WHOLE FINANCIAL SYSTEM OF THE WORLD!

      If its $100 billion ( the losses on JP Morgans interest rate swaps), then that blows up everybody.

      Harvey believes that the panicked reactions of multiple federal regulatory agencies indicates that JP Morgans losses are likely much more critical and severe than the mere $8 billion lost in the IG9 tranche, and states the data indicates JP Morgan is unwinding a portion of its $50 Trillion in interest rate swaps.
    Login Status
  • You are not logged in
    • Login

      Provides additional benefits such as notifications, signatures, and user authentication.

      Create Account
    Your Name
    Message Title
    Message Text
    Enable formatted text (what's this?)
    Notice: This is a moderated forum. Your post will not show up until a moderator approves the message. If you regularly have full posting privileges, you may have to login first.

    Find more forums on ArmenianCreate your own forum at Network54
     Copyright © 1999-2018 Network54. All rights reserved.   Terms of Use   Privacy Statement  
    It All Begins Here, Click To Chat With Armenian Girls and Guys