the game has changed - kirby, page-5

thx dub, interesting post. here's a quick summary of where otc's sat recently -

http://www.bis.org/statistics/otcder/dt1920a.pdf
As at Dec 2008 USD$591 trillion (thousand billion!!) was notionally held outstanding in OTC derivatives

the $111 billion in silver derivatives is loose change spilled from the pockets of the $581 trillion in otc derivatives ... I wouldn't hesitate to guess the false accounts in derivatives adds a factor of 10 to this.

rb, didn't opus prime and sub-prime mortgages tell the world how fundamentally ignorant banks when chasing a return, despite all their well paid smarts. how messed up is the intellect when they are trading 'derivatives of debt' for profit. someone around here previously didn't grasp the concept of physically backing a trade with something material. Simplistically the 100:1 leveraging of tangible worth creates an unfunded liability 99 times the value of that transaction. they are trading thin air if people choose liquidity at any particular moment .... which part of that would you rather be holding when it happens?

anyhow, look for how this opportunity might create (or destroy in some sectors) many mulitples of your future wealth.

trade smart, be on the ball ... and good luck.

(For 20 cents - if things do deteriorate, the Aus governments bank g'tee will be the immediate liquidity mums and dads will be reliant upon to live on. give it some thought pending your opinion on futures if they think they are going to remove the gtee anytime this side of Xmas2009. What the banks say they are exposed to is a drop in the ocen to what is being purported).