[TigerLikesRooster]

The link to derivative table on BIS report: http://www.bis.org/publ/qtrpdf/r_qa0809.pdf#page=108

[rabscuttle385]

The Money, Banking, and Financial Markets Ping List. "Money, not morality, is the principle commerce of civilized nations." —Thomas Jefferson FR Keywords: moneylist, bankinglist, financelist Please tag all relevant threads with the aforementioned keywords. This can be a very high-volume ping list at times. Ping list jointly pinged by rabscuttle385 and TigerLikesRooster. To join the ping list: FReepmail rabscuttle385 with the subject line add  moneylist. (Stop getting pings by sending the subject line drop moneylist.)

[freebilly]

This has been the elephant in the room that is just getting some attention....

[raybbr]

I don’t know if you are on TLR’s list but, ping.

[TheRiverNile]

I can almost hear the laughter.

[gotribe]

I don’t know about the scariness here. The currency market is larger than all other markets combined and the most liquid. Lots of “derivatives” in the foreign exchange market in the form of hedges against currency moves. Not at all similar to sub-prime lending derivatives.

[Brian S. Fitzgerald]

I smell a Democrat behind all of this.

[DiogenesLaertius]

This what happens when you take a bunch of spoiled kids from the Ivies to manage trillions of dollars worth of transactions.

They thought they could have morons with only a liberal-arts college degree and a good name into a mathematical genius that can accurately price risk. They thought wrong.

[palmer]

German chancellor Angela Merkel said ahead of an emergency meeting with French president Nicolas Sarkozy in a TV interview that she would present a rescue package for German banks on Monday. This is also expected from several other European countries. Italian president Silvio Berlusconi went so far as to suggest a concerted stock exchange holiday.

This news is all one month old. In the meantime nothing has been fixed but various bankruptcies have been postponed with loans. That's good and bad: prevents the derivatives meltdown, but it also keeps the economy hostage to insolvent banks.

[slnk_rules]

I am the least worried about currency derivatives. This is the interbank market, which is the biggest, most liquid, and most importantly, the most accurate “marked to market” center for financial instruments in the world.

They have been doing derivatives before they were called derivatives. IF (big IF) there are any markets out there with a true net zero sum (all the derivatives cancel each other out, the way derivatives are supposed to do) it would be this one.

[Secret Agent Man]

Easy. Since it’s fiat money, just print 596 ‘one trillion’ dollar bills. Or 60 ‘ten trillion’ dollar bills and have 4 trillion extra in change.

Gotta love fiat currency. Money out of nothing. WHOOO-HOOOO! I mean, “D’OH!”

[Grampa Dave]

Obama Wins, Economy’s Doomed:

Peter Schiff, president of Euro Pacific Capital and author of ‘The Little Book of Bull Moves in Bear Markets,’ says a big-government Obama administration will lead to an economic collapse on par with the Great Depression.
Sun 11/09/08 04:59 AM EST — Gregg Greenberg

Check the video linked below to really make your day, week, month, year, decade:

http://www.thestreet.com/_yahoo/video/strategysession/10446771.html?cm_ven=YAHOOV&cm_cat=FREE&cm_ite=NA

[GOPJ]

As the vast majority of these contracts have no market, failure will come in the form of counterparty risk. This makes all the current emergency meeting a bit more understandable if politicians are already aware of the biggest bubble that may find no other way of deflation than a sudden burst.

There's not enough money in the world for a "bailout". Let this bubble burst, then selectively pick up important pieces...