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How many zero's are there in 120 Trillion???
According to the latest numbers from the Treasury Department, JPMorgan and Goldman Sachs are holding the bag on 60 percent of the world's derivatives - an astonishing $120 trillion between them, Still reports.
According to Treasury figures at the end of June, J P Morgan held a staggering $80 trillion in derivative exposure, 50 times more than its $1.6 trillion in assets. Goldman Sachs is in an even more precarious condition. It holds $40 trillion in derivatives backed by assets of only $120 billion - a leverage of 333-to-1.
"To put this into perspective," said Still, "The Gross Domestic Product of the United States is a mere $14 trillion. Even the world GDP is only $65 trillion, and the best estimate of the worth of everything in the world is only $200 trillion. That's how big these numbers are."
"They can't lose because Congress is going to back them. They are privatizing the profits and socializing the losses. Any money they gain from those who actually pay their mortgages, they pocket as profit, but they pass on the bad loans to the government and we, the people, end up paying for them in increased taxes. They can't get any more bankrupt than they are now."
Terry Miller
Keller Williams Tyler, Texas
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