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The banks and aig are too big to save! They are taking us into a DEPRESSION!

$1.14 quadrillion get a load of this!

No, that’s not a made up word. A quadrillion is one thousand trillion dollars. Not $4 trillion, but $1000 trillion – and change.

Here’s the breakdown, according to the International Bank of Settlements, which acts as banker for the world’s central banks:

1) Listed credit derivatives stood at USD 548 trillion;
2. The Over-The-Counter (OTC) derivatives stood in notional or face value at USD 596 trillion and included:
a. Interest Rate Derivatives at about USD 393 + Trillion;
b. Credit Default Swaps at about USD 58 + trillion
c. Foreign exchange derivatives at about USD 56 + trillion;
d. Commodity Derivatives at about USD 9 trillion;
e. Equity Linked Derivatives at about USD 8.5 trillion; and
f. Unallocated Derivatives at about USD 71+ trillion.
World derivative debt is $1.14 Quadrillion USD. For the US banks share of that see Table 1, page 22 of 33 at

The jig is up folks. The US banks are essentially bankrupt, with $10.5 trillion in assets vs. $176 trillion in derivative debts.

G20 world leaders should WRITE OFF this toxic speculative derivative ‘debt’.

Put in further perspective, the entire world’s GDP, according to the CIA’s world book, is $71 trillion USD annually. Compare that with that $1.14 quadillion and you now understand that a huge transfer of wealth is taking place, crowding out legitimate recovery efforts.

http://bluelori.blogspot.com/2009/04/all-hail-government-sachs.html

G20 world leaders should WRITE OFF this toxic speculative derivative ‘debt’.

The notional amount of derivatives does not equal a current or potential future liability. There are assets and/or liabilities booked related to these derivatives, but generally at a tiny fraction of the notional amount. Writing off the notional amount of all derivatives would not only be a disaster, it would be wrong.