$1.5 Quadrillion Derivatives Bomb And The Great Financial Disaster
KingWorldNews.com
Oct. 20,2015
Today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events warned King World News that the world’s $1.5 quadrillion of derivatives will lead to the Great Financial Disaster.
October 20 – (King World News) – Egon von Greyerz: We just had another confirmation that banks are dealing in sums which they don’t understand themselves. A junior employee in Deutsche Bank (DB) paid $6 billion to a hedge fund which was the gross value of a position. He should have paid the net. That in a nutshell shows the uncontrollable exposure of the banking system which will lead to its downfall…
How can a junior employee in a major bank pay the incredible sum of $6B without any controls whatsoever? This is a world gone mad. Governments print trillions, banks issue derivatives in the quadrillions and banks transact in hundreds of billions every week. The zeros no longer mean anything and have no value. This is all routine stuff for the people dealing in these sums and no one has a clue about the risk or the real exposure.
Remember that back in 1995 Barings Bank collapsed in London after a loss of £827 million ($1.3B). The fall of Baring almost brought all the banks down in London. The money printing and the credit creation 20 years later have created a financial system which is out of control, heavily overleveraged and desperately undercapitalised.
The Rest…HERE
