Friday, October 24, 2008

You Have Benn Warned!

more potential bad news


Anonymous said...

"You got that right!"

ainkurn said...

that's an awesome picture. the market is truly in bad shape.

MatchPointTrader said...

I feel like I am watching the scariest movie ever and that picture is the poster for that movie!

gamingthemarket said...

Some points to remember:

$8.3 trillion of real money is controlling $313 trillion in derivatives.

This illustrates the sheer magnitude of the problem and the economy-busting potential of a miscalculation. That's why Warren Buffett calls derivatives “weapons of mass destruction.” If there's a fire-sale in hedge funds or derivatives, there's nothing the Plunge Protection Team or the Federal Reserve will be able to do to stop a meltdown.

There are roughly 400 key hedge funds linked to illegal activity. In total 11,500 hedge funds have $1.2 trillion under management. However, that money has a very high cycle rate. Hedge funds execute up to 50% of the daily trading on the $21 trillion New York Stock Exchange. They also do 70% of the trading in the US distressed debt market, US exchange-traded fund market, and the convertible bond market.

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