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Friday, October 24, 2008

You Have Benn Warned!



more potential bad news

4 comments:

Anonymous said...

"You got that right!"
--"Fargo"

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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