$12,000 gold

derryb

Just four banks hold 87 percent of all derivatives at all 4,587 federally-insured financial institutions in the U.S. that existed as of December 31, 2023. Appears interest rates is their biggest bet. This can't end well.

I put odds at 95% that any one of us banks with at least one of them.

All the Devils from 2008 Are Back at the Megabanks: Leverage, Off-Balance-Sheet Debt, Over $192 Trillion in Derivatives, Shaky Capital Levels

tincup

Rinse and repeat! If it worked once.... should work again! We are all in a game of musical chairs whether we like it or not.

GoldFinger1969

Net exposure is a fraction of notional exposure.

Your numbers are misleading.

All the Devils from 2008 Are Back at the Megabanks: Leverage, Off-Balance-Sheet Debt, Over $192 Trillion in >Derivatives, Shaky Capital Levels

Leverage for Wall Street Money Center banks is about 8-9 to 1. In 2008, it was 20-25 to 1. Off-balance sheet debt is a fraction of 2008's. Derivative net exposure is a fraction of what you cite. Capital is at the strongest levels in 50 years.

You continue to subscribe to the "Garbage In, Garbage Out" websites.

jmski52

Capital is at the strongest levels in 50 years.

Sure, and the Fed can create as much fake money as the banks will ever need. Even the mob in Vegas didn't have as refined a skimming operation as the Fed does.

John Williams calculates inflation at 10.9%, not 2.9%. Que sera, sera.

targetedwork

If it is true then it is a very terrible situation. What should we do in such situation ?

@derryb said:
Just four banks hold 87 percent of all derivatives at all 4,587 federally-insured financial institutions in the U.S. that existed as of December 31, 2023. Appears interest rates is their biggest bet. This can't end well.

I put odds at 95% that any one of us banks with at least one of them.

All the Devils from 2008 Are Back at the Megabanks: Leverage, Off-Balance-Sheet Debt, Over $192 Trillion in Derivatives, Shaky Capital Levels

blitzdude

@targetedwork said:
If it is true then it is a very terrible situation. What should we do in such situation ?

Kick back and wait for $12,000 gold? RGDS!

Goldminers

Even back in 1880 there were plenty of people who could see the inflationary impacts of over printing fiat currency.

derryb

@targetedwork said:
If it is true then it is a very terrible situation. What should we do in such situation ?

@derryb said:
Just four banks hold 87 percent of all derivatives at all 4,587 federally-insured financial institutions in the U.S. that existed as of December 31, 2023. Appears interest rates is their biggest bet. This can't end well.

I put odds at 95% that any one of us banks with at least one of them.

All the Devils from 2008 Are Back at the Megabanks: Leverage, Off-Balance-Sheet Debt, Over $192 Trillion in Derivatives, Shaky Capital Levels

I'll be pulling all of my cash from banks at the first sign of failure at a medium to large bank. If the smoke clears I can also re-deposit it.

tincup

I'll be pulling all of my cash from banks at the first sign of failure at a medium to large bank. If the smoke clears I can also re-deposit it.

That would work only if the bank allows it. If they are having a bank holiday.... ooops. And there probably won't be much warning.

jmski52

That would work only if the bank allows it. If they are having a bank holiday.... ooops. And there probably won't be much warning.

This.

derryb

@jmski52 said:
That would work only if the bank allows it. If they are having a bank holiday.... ooops. And there probably won't be much warning.

This.

there will be sufficient warning to those paying attention,.

Autophagy

This sounds like a greed thread for gold bugs.
Banks run the world.
They’ll never let gold bugs run them.

derryb

@derryb said:

@jmski52 said:
That would work only if the bank allows it. If they are having a bank holiday.... ooops. And there probably won't be much warning.

This.

there will be sufficient warning to those paying attention,.

94 US Banks Burdened by Uninsured Deposits – Risk of Bank Runs

Your early warning:

"Banks will begin to fail in Europe before it becomes a global contagion."

Autophagy

Gold has nothing to do with banks failing. If one bank fails (Bear), another bank takes over. Gold in no way shape or form is involved.