Remember the stories surrounding the LTCM (Long Term Capital Management) debacle? Just to review; LTCM was the group of derivatives traders that bet too heavily on the Ruble and collapsed in 1998.
As I recall, the amount of LTCM's exposure was 65 Billion. The prevalent story was that the Feds bailed them out, fearing a domino effect might result in a world wide banking collapse.
Seems like peanuts today in relation to the exposures we are now seeing, (27 Trill @ JPM).
Am I the only one curious about the relative magnitude of this? Just the PPT alone must be spending billions to artificially manipulate gold, oil, & SM.
What about the pension problem of a few Trill?
Is there an end-game or will the power of the printing press suffice indefinitely?
The numbers & the extent of the distortions are way beyond my ability to comprehend. The Constitution appears to have lost any usefullness short of TP. Is it over? How much time have we got before implosion? How soon before the debt liquidation begins in earnest?
Please post your comments. All will be appreciated & thoroughly perused.
We used to have better beer in this country, better bread, better coffee, better movies, just as a matter of course, not as boutique products.
What the hell happened?
In the case of the beer, it was the repression of Germans and German enterprises, I think, during WWI. In the case of the movies, Pauline Kael says it was the conglomerates took over.
I am not sure your oil argument holds up. I understand productivity to be the generation of goods and services -expressed in dollars- per employee. If oil were to be cheaper it would reduce the productivity...
By: flint5821: >>>> The exposure for JPM I believe would be quite a bit less than 27 Trillion. Probably still a lot higher than LTCM but not quite the face value of derivatives. <<<<<<
JP jumped immediately to mind as merely a representative example of the plethora of examples that exist.