“A massive short position. I think I see the problem. The risk is unlimited in such a position.”
And we are only just beginning to hear who was exposed. Citi has already admitted to an at least $150 million loss.
What about Goldman, or JP Morgan, the huge currency players? Nothing yet. Monday morning, the margin calls will hit, but not in the US until Tuesday.
Will Yellen save the “too-Big-to-fails” if they caught the knife?
If Citi had a $150mm loss that equates to something like $0.0005 per share. That doesn’t require a bailout of any kind.
“What about Goldman, or JP Morgan, the huge currency players?”
Speaking of JP, it’s my understanding that JP has a massive short position in silver ETFs. Do you think that will blow up in JP’s face this week?