HSBC WARNS: The world economy faces a 'titanic problem'

originally posted by: mOjOm
a reply to: cmdrkeenkid

You're not alone pal. When the bottom drops out and all the wall street guys are jumping out windows and the rich are crying because their money is worthless and they don't know how to do anything for themselves and all the rich brats of the world pout and stomp and whine about their trust funds being all gone, you and I and many others can sit back and enjoy watching the expression on their smug, privileged faces as reality sets in and kicks them square in the balls.

That's a lot of irrational hatred for a varied group of people.

The Size of the Derivatives Bubble Hanging Over the Global Economy Hits a Record High

If I remember correctly this exposure is like 20x Global GDP. It is complete insanity. Not to mention that most of the math used in the derivative market is so complex that most do not understand it at all.

The global derivatives bubble is now 20 percent bigger than it was just before the last great financial crisis struck in 2008. It is a financial bubble far larger than anything the world has ever seen, and when it finally bursts it is going to be a complete and utter nightmare for the financial system of the planet. According to the Bank for International Settlements, the total notional value of derivatives contracts around the world has ballooned to an astounding 710 trillion dollars ($710,000,000,000,000). Other estimates put the grand total well over a quadrillion dollars.

the big Wall Street banks are collectively 37 percent larger than they were just prior to the last recession. “Too big to fail” is a far more massive problem than it was the last time around, and at some point this derivatives bubble is going to burst and start taking those banks down. When that day arrives, we are going to be facing a crisis that is going to make 2008 look like a Sunday picnic.

The Size of the Derivatives Bubble Hanging Over the Global Economy Hits a Record High

ETA:

According to official government numbers, the top 25 banks in the United States now have a grand total of more than 236 trillion dollars of exposure to derivatives. But there are four banks that dwarf everyone else. The following are the latest numbers for those four banks… JPMorgan Chase Total Assets: $1,945,467,000,000 (nearly 2 trillion dollars) Total Exposure To Derivatives: $70,088,625,000,000 (more than 70 trillion dollars) Citibank Total Assets: $1,346,747,000,000 (a bit more than 1.3 trillion dollars) Total Exposure To Derivatives: $62,247,698,000,000 (more than 62 trillion dollars) Bank Of America Total Assets: $1,433,716,000,000 (a bit more than 1.4 trillion dollars) Total Exposure To Derivatives: $38,850,900,000,000 (more than 38 trillion dollars) Goldman Sachs Total Assets: $105,616,000,000 (just a shade over 105 billion dollars – yes, you read that correctly) Total Exposure To Derivatives: $48,611,684,000,000 (more than 48 trillion dollars)

Anyway, it will have the bubble pop at some point. Sooner or later, at this time I don't see that it will matter.

originally posted by: khnum
a reply to: Sublimecraft

HSBC only has 4.32 trillion dollars derivative exposure thats' only 4 320 000 000 000 what could possibly go wrong?

This is what's going on. Derivatives are at some point going to blow up, when it happens it is going to crash every currency system on the planet. The USD will be gone along with everything else. These currencies will be hyper inflated and used to pay off all debts. When that happens a new currency will be unveiled, it will be an international crypto currency like Bitcoin, it may even be Bitcoin (world governments have been stocking up on them for awhile now). Using this digital good, new national currencies will be issued that represent shares of a bitcoin or other crypto. That will replace the dollar. They will go into your bank account at some predetermined conversion rate, and within a day your ATM card will function again.

This will happen the world over. HSBC may trigger it, they may not it could be another bank instead. However, keep in mind that when this reset happens all of your assets in an account will disappear, as will the value of the cash in your mattress.

Perfect, i cancel my contract and move into my parents place the same time.

....Money....

originally posted by: ketsuko
Interesting considering the company sent all its employees a memo today telling them that they would now "partner" with employees in the management of all 401K retirement funds, meaning that employees will lose the complete autonomy they had to pick and choose how their monies would be invested and in what percentages. Now the company will have preset investment patterns that will dictate how much you can and can't invest in the various fund categories depending on how close you are to retirement.

Like my husband said in his email ... it's not a government takeover ... yet.

But he's not happy about it, and is considering a range of options from lying about his projected retirement age to yanking money from time to time to start his own private retirement.

I like to listen to the sunday financial shows on the radio. I managed to catch a bit of talk about this, basically what's happening is they're trying to force diversification. The claim is that it's in the individuals best interest but the reality is that it's in everyones best interest. When individuals invest too heavily in a sector, the hedge fund all that money is in, must also be invested too heavily. The banks don't like this because now just isn't a time for anything but the lowest risk activities.

It's nothing malicious, but it does take away choice.

If you want to get into conspiracy though, the banks want your account to be stable. If the bottom starts falling out, some sectors will lose before others which means a well diversified portfolio may only lose 50% on the day the crash happens, and then another 1%/day after that. That means there's plenty of money there for them to nationalize and bail out the bank. If no one is diversified in those optimal strategies they suggest, then there will be less money and even worse things happen.

originally posted by: EternalSolace
a reply to: bobs_uruncle

I don't believe any amount of fighting will ever lead to that reset button being pressed. They'll never allow all the debt slaves to be free.

The reset button doesn't free you. It puts you further into slavery. Your savings are gone. The wealthy also lose their savings but they keep something you don't have... control over processes/businesses that make more money. Even if they're completely wiped out the business can serve as collateral for a loan for operating expenses. They go back from being on the top step of the game (step 100) to step 90. You go from step 25 to step 0.

a reply to: WCmutant

Our resources are the same, the Earth did not suddenly refuse to grow food, oil and gas are still available, the sun is still shining. There still is plenty for all.

Alas - a collapse of this system probably will not lead to a better world. Those in favour of this system - the ones that feel their contribution to society is more important than that of others - will inevitably reinvent a similar system or resurect the current one to underline their own importance. And as always, the majority of the people will simply follow them - they provide safety whilst stealing.

Because it is only the mad idea that some folks are worth more than others that makes it so.

whats a derivative bubble?

do you know what a derivative is??

do horses wear socks???

to add, this bubble talk is nauseating. when these things pop they dont just disappear. money changes hands but like most things theres winners and losers. thats not to say most uninterested investors wont lose bc they will but if you have half a brain and take action you can be on the winning team too

Is the word "Titanic" hinting at something? I know you've all heard the Titanic conspiracy and how the Federal Reserve was created...

originally posted by: mlemo
whats a derivative bubble?

do you know what a derivative is??

do horses wear socks???

to add, this bubble talk is nauseating. when these things pop they dont just disappear. money changes hands but like most things theres winners and losers. thats not to say most uninterested investors wont lose bc they will but if you have half a brain and take action you can be on the winning team too

Some people will be on the winning team, does that suddenly make it better that one side gets to take massive amounts of wealth from another side?

When the bubble pops, there will be blood. Numerous serious attempts on the bankers lives were found in the planning stages. If Obama didn't do what he did, the corpses of bankers would have lined the streets. Next tie will be 10x worse, and being on the winning side doesn't make it any better because in the eyes of those who just had everything wiped out you will be a collaborator or war profiteer, and just as bad as those bankers.

originally posted by: Aazadan

originally posted by: mlemo
whats a derivative bubble?

do you know what a derivative is??

do horses wear socks???

to add, this bubble talk is nauseating. when these things pop they dont just disappear. money changes hands but like most things theres winners and losers. thats not to say most uninterested investors wont lose bc they will but if you have half a brain and take action you can be on the winning team too

Some people will be on the winning team, does that suddenly make it better that one side gets to take massive amounts of wealth from another side?

When the bubble pops, there will be blood. Numerous serious attempts on the bankers lives were found in the planning stages. If Obama didn't do what he did, the corpses of bankers would have lined the streets. Next tie will be 10x worse, and being on the winning side doesn't make it any better because in the eyes of those who just had everything wiped out you will be a collaborator or war profiteer, and just as bad as those bankers.

i mean its these kind of responses that i realize why i cant internet i just get too angry, theres a reason youre poor man let me just say that. "Some people will be on the winning team, does that suddenly make it better that one side gets to take massive amounts of wealth from another side?" are you cereal?? dont like risk dont invest..and yeah yeah blah blah the poor will rise been hearing it forever but heres the thing, they are soo destitute they cant even get a job..i think its based on the same philosophical premise as karma, that the lowly and injured will have the last laugh..okk guy

and you still dont know what a derivative bubble

a reply to: mlemo

I know precisely what it is and my financial situation has nothing to do with this because we're talking in macro terms, not micro.

But to humor you, a derivative is a type of bet placed on a good, typically an asset, index, interest rate, or some other type of metric. A bet is made that it will be at a certain price at a certain time. When that time comes up the person has the option to buy or sell their good at that price.

A bubble is to borrow a quote "A market phenomenon characterized by surges in asset prices to levels significantly above the fundamental value of that asset."

The derivatives bubble is referring to the HUGE number of them on the market right now, which go well beyond the assets of any bank to cover them. It's especially tricky because the unregulated nature of derivatives means any attempt to reign it in can cause the collapse you're trying to prevent.

What happens to the system when 10% of people win and 90% of people lose? What about when it's 1% and 99%? Do you think people are just going to take those losses? People simply aren't going to accept their futures being taken from them. Lifelong retirement plans - gone. Kids college fund - gone. Home equity - gone. This will happen in the next collapse.

Did you know that 90% of the successful bets are being made by 10% of the people? You just mentioned risk tolerance to me, I have some tolerance for risk, such as living unarmed in a town that has an average of 19,000 violent crimes per year per 100,000 people. However, even I know to just stay away from derivatives. I and likely you are in the 90% that's fighting over the 10% of scraps.

Oh, and I'm not saying the poor will rise. The poor have no assets and no power. They have no ability to rise. The people that are going to rise are the ones who have just enough to lose something... the middle class, the people in the 30th-90th percentiles in the country. Those are the people who will rise up in the next collapse because they're going to lose it all.

a reply to: Aazadan

i appreciate the reply even though ive been a d..my point is claiming theres a derivative bubble is like claiming theres a stock bubble..the official story is the 08 collapse was based on the failing of mortgage backed securities..those are derivatives..if you were to claim big money usually wins simply based on the theory of leverage youd have a point but to claim theres a derivative bubble is nonsensical garbage time

Take a look at Ireland and the way this Government is treating the middle/lower class, and the way media is controlled. Thank god for FB and the likes....

The global economy has basically been run as a Ponzi scheme for decades now. Soon it will all come crashing down. As the people responsible know they will be fighting for their lives, I think they will act violently and preemptively. A global war is not out of the question. Scary times.

a reply to: ForteanOrg

Because it is only the mad idea that some folks are worth more than others that makes it so.

It never ceases to amaze me how many people are blind to this little detail...

Although if not blind that would mean programmed ...sux either way

It boils down to companies looking after individual profits running politics rather than people whom have the economy as a whole in mind.

originally posted by: wasaka

Could be repeat of Sept 2008 - remember that?

You get the prize of the day! Bingo.

2008 was a great day for banks, it was a litmus test to see what would happen. People took it on the chin, and the banks made trillions of dollars from defaults, bail-out money, taking houses back, selling them on the cheap, then eventually getting mortgages again on those same houses.

Their test proved to be a massive money maker, and that houses could be a commodity to be toyed with every few years or so.

The way to keep people in control is perpetual chaos.

The only way to work around a system like this is don't get in more debt than you can handle, or don't get in any debt.

Fiat currency is an illusion, TPTB don't care how much debt there is because they invented it all in the first place.

People that go to work and trade their time for money, need to watch this video over and over till they understand. lol

Its sure does face a "Titanic" problem.

Here is the ICEBERG

It actually already hit it and it's sinking slowly. If you remember from the movie the most destruction and loss of life occurs closest to when it finally slips totally under water.

Financial doom porn.... But I don't know if this is really "doom porn", because doom porn threads aren't supposed to ever happen... This one likely will happen, so I think it should be "oh sh*t porn"...