Are banks hiding profits off balance sheet?

[miller]

The best Xmas present all your friends can get would be a copy of my book. You will learn how we Americans are being taken down by the small privileged class.

When you keep reelecting crooks who kickback for their bribes with complete immunity. Outright theft is protected by law enforcement. and the courts.

We must start working together to use the internet to vote these crooks out. Quit turning your heads. The place to start is 911.

 

[KissMy]

miller - After reading your website it looks like your book is behind the curve. There was no mention of federal, state & local unfunded pension guarantees. Unions, governments & wall-street have promised these huge tax payer guaranteed unfunded pensions to government workers. Wall-street bankers raided these funds with phony AAA paper & government over promised & under funded them. Now the US citizens pockets will get picket to pay for this.

 

[Ropey]

miller - After reading your website it looks like your book is behind the curve. There was no mention of federal, state & local unfunded pension guarantees. Unions, governments & wall-street have promised these huge tax payer guaranteed unfunded pensions to government workers. Wall-street bankers raided these funds with phony AAA paper & government over promised & under funded them. Now the US citizens pockets will get picket to pay for this.

You went there? Gotta bump you for that.

 

[miller]

Buy the book, I need the money.

Well at least you're blunt about your purposes here.

No one bought the book and I took the link off my blog.

 

[miller]

Buy the book, I need the money.

Well at least you're blunt about your purposes here.

I'm blunt about everything. I don't fool myself. Try some reality.

 

[manifold]

Profits for any given are reported on an income statement. The balance sheet is a snap shot of a point in time (that may include some profit for period cumulative total broken out from total retained earnings) . However, the idea that "profits" can be hidden off balance sheet betrays a fundamental ignorance of basic accounting concepts.

 

[miller]

To get to $680 trillion means there's no limit. Its infinite. Its zooming past galaxies.

When there was $1 trillion in foreign debt, the US Brady Plan buried it. The US got tired of hearing about countries that missed their payments.

Whatever has grown to $680 trillion is like a rocket that goes faster than twice the speed of light. Its bizarre and now you can go back to your trance and forget about it.

It ain't off the balance sheet because its good.

I had to use blue for this one. I was afraid you wouldn't see it.

 

[miller]

There's a difference between notional and net exposure. Today's notional exposure is about $640 trillion. Net exposure, depending on you ask, is $2-$10 trillion. Notional is if you add everything up. Net is when you offset each position. Almost all derivatives are offset, i.e. the value goes up for one investor and down for another. In theory, the real exposure is the net exposure. But that assumes no counterparty risk, a fanciful assumption. The other side of the counterparty if there is a failure is the government because they will bail out the market.

Also, most of the derivatives market is interest rate and currency swaps, which last I heard, accounted for three-quarters of the entire market. These are plain vanilla swaps, and, for the most part, are about as scary as the squirrel in the tree. However, that leaves ~$160 trillion notional in other derivatives, which is still a big number, considering that the GDP of the planet is ~$150 trillion.

More nonsense. The only thing you're right about is that the $680 trillion is notional.
1% of $680 trillion $6.8 trillion. Nothing moves only 1%. Exposure on Treasuries as an example just dropped $16,000 on a $100,000 bond since September, 6 months ago.

That's 16%. 16% of $680 trillion is $108 trillion. Cut that in half to $54 trillion. Feel better? You're still in fantasy land.