[Lorianne]

http://americablog.com/2013/03/the-worldwide-derivatives-market-could-be-over-1-2-quadrillion-in-notional-value.html

[21twelve]

That’s all too complicated for me. I’m going to see if American Idol is on.

[laplata]

ping

[mylife]

Whats another few zeros? /s

[babygene]

Seems to me that this is a problem only to the extent that governments feel they need to bail them out... With numbers like this, they can’t. So who looses

[Jonty30]

Notional value - what somebody says something is worth. Documentation is not necessary.

My $25,000 Focus has a notional value of $1,000,000. However, because I’m such a nice guy, I will be willing willing to,sell it for half its notional value.

In other words, notional value is the same in saying the value is made up.

[Secret Agent Man]

it’s all fake. it’s fake money based on non-existing products.

[Lonesome in Massachussets]

WOULD YOU PLEASE NOT USE THE WORD “QUADRILLION”. WHAT IF OBAMA FINDS OUT THAT THERE’S SOMETHING BIGGER THAN A TRILLION?

[oldbrowser]

Sounds like they are getting ready to run us around the pole again.
What they aren't mentioning is the billions of dollars in campaign contributions that the bankers pay out to be allowed to run this bookmaking operation.

[wolfman]

What is important to realize about all this is that the whole world, all the major economic powers and blocs are primed to blow up: China, Japan, the US, and Europe. It is not like some of these are acting as stabilizers for the others. They are all pursuing unsustainable courses and becoming increasingly unstable. The result is likely to be a cascading failure and mega-meltdown. There should be nothing surprising about this. None of the underlying problems have been fixed. They are all still there. They are getting worse and more problems are being added to them with each new crisis. Something will have to give. It is not a question of if but when, like a weak and poorly built dam holding back a 500 year flood, or like being in a munitions factory, gunpowder spilled all over the floor, and matches being flicked about. It will explode. The financial sector controls the economy and government. But it does not control the math, and in the end the math will win out.

[Wingy]

It seems, IIRC that the problem is worse then what is stated here. I saw an article on FR this past winter that, according to The International Bank of Settlement, the top six banks in the US had a derivative exposure of $1.65 quadrillion.

Methinks the house of cards is teetering....

[Hardraade]

Quadrillion?? That’s just enough for golf and dinner \Obama

[Irishguy]

but honestly what happened in Cyprus where they took money wont happen anywhere else...honestly...

if this keeps up i might actually stop having faith in the banking system /end sarc

[quintr]

derivatives primer

[ex-Texan]

Bank Of America Dumps $75 Trillion In Derivatives On U.S. Taxpayers With Federal Approval !

LOL !

The whole goovernment is corrupt and on the take for $$$$ Millions from crooked, greedy bankers that own it all.

Welcome to New World Order or NWO where everything is crooked and deeply corrupt

[Jimmy Valentine]

Derivitives are a risk hedge. Essentially you trade a piece of your earning rate for a lower risk. Where the fun starts (and it always seems to ) is when one side starts to weaken one side of the transaction under the assumption that the market will move their way. If it does, BIG MONEY! However, if it moves away from you HUGE LOSSES.

Another factor in all of this is the requirement to mark to market investment assets whether sold or not.This can create big swings in values and destabilize an institution (Ref: Lehman Brothers).

[OB1kNOb]

So that’s like, what, 1,200 hundred or so trillion dollar coins that the Fed can have stamped out in what, a week? No biggee............\flaming sarc