View RSS Feed

coalition

Peace in our time

Rate this Entry
[QUOTE=coalition;377822][B]Why taking our Pension money is simply a Con. If we gave the Banksters all the UK Taxes for the next 1,000 years, they would still not be Solvent.[/B]

[I]Source:[/I] [I][URL="http://www.bis.org/publ/otc_hy1111.pdf"]OTC derivatives market activity in the first half of 2011[/URL][/I] [I]and[/I] [I]Semi-annual[/I]
OTC derivatives market
Activity in the first half of 2011 Bank for International Settlements 2011. All rights reserved. Brief excerpts may be reproduced or translated provided the source is cited.
After an increase of only 3% in the second half of 2010, total notional amounts outstanding of
over-the-counter (OTC) derivatives rose by 18% in the first half of 2011, reaching $708 trillion
by the end of June 2011 (Graph 1, left-hand panel, and Table 1).1
Notional amounts outstanding of credit default swaps (CDS) grew by 8%, while outstanding equity-linked
Contracts went up by 21%. Gross market values 2 of all OTC contracts declined by 8%, driven mainly by the 10% reduction in the market value of interest rate contracts. CDS market values were almost unchanged. Overall gross credit exposure 3 dropped by a further 15% to $3.0 trillion,
compared with a 3% decrease in the second half of 2010.
[B]$707,568,901,000,000: How (And Why) Banks Increased Total Outstanding Derivatives By A Record $107 Trillion In 6 Months[/B]
While everyone was focused on the impending European collapse, the latest soon to be refuted rumors of a quick fix from the Welt am Sonntag notwithstanding, the Bank of International Settlements reported a number that quietly slipped through the cracks of the broader media. Which is paradoxical because it is the biggest ever reported in the financial world: the number in question is $707,568,901,000,000 and represents the latest total amount of all notional Over The Counter (read unregulated) outstanding derivatives reported by the world's financial institutions to the BIS for its semi-annual OTC derivatives report titled "OTC derivatives market activity in the first half of 2011." Indicatively, global GDP is about $63 trillion if one can trust any numbers released by modern governments. Said otherwise, for the six month period ended June 30, 2011, the total number of outstanding derivatives surged past the previous all time high of $673 trillion from June 2008, and is now firmly in 7-handle territory: the synthetic credit bubble has now been blown to a new all time high. Another way of looking at the data is that one of the key contributors to global growth and prosperity in the past 10 years was an increase in total derivatives from just under $100 trillion to $708 trillion in exactly one decade. And soon we have to pay the mean reversion price.[I]Source:[/I] [I][URL="http://www.bis.org/publ/otc_hy1111.pdf"]OTC derivatives market activity in the first half of 2011[/URL][/I] [I]and[/I] [I]Semi-annual[/I][/QUOTE]
Categories
Uncategorized

Comments