derivatives
Financial unicorns to my way of thinking. Despise those things.
Yep. I'm a 32-year retired military guy and now I am in full-time finance. Derivatives are more dangerous than being in Fallujah in 2004 without an Up-Armored Humvee. The best description of them is in the movie "The Big Short" - which everyone with interest in the markets should see - the Casino Scene. They are basically bets on the bets that people are making bets on. One wrong move and the whole system implodes.
DB has a $75 TRILLION (!!!) derivatives exposure...and that's just them. Who knows what Credit Suisse has - and the rest of the Euro gang.
But here are some guesses in terms of the US Banks:
Citi: $47 trillion
JP Morgan: $47 Trillion
GS: $41 trillion
BOA: $33 trillion
Morgan Stan: $28 trillion
Total of top 25 Banks: Over $250 Trillion in the US alone. I've read that the total worldwide is about $1 Quadrillion.
Just imagine what a total derivatives collapse would look like.