3 votes

1% Trading Loss on $80 T by JP Morgan to Eviscerate Them!

... The world’s biggest derivatives player - J.P. Morgan - has “seemingly” NEVER, EVER made a bet even “1 % wrong” with their 80 Trillion derivatives book. The Morgue has a Market Cap of roughly $180 billion. A wrong bet of a mere 1% on their ‘book’ would translate to a loss of $800 billion dollars eviscerating their entire capital base more than four times over. The knock on effect from such an event would trigger multiple tsunamis reverberating through the global financial system. Sounds absurd, but it’s pure math.

Either J.P. Morgan NEVER makes a mistake or they get a pass if / when they do make a mistake. Back in early 2006, Business Week reported,

    President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006,

... J.P. Morgan’s derivatives book constitutes national & international security... along with other large derivatives player are NECESSARILY excused from wrong way bets. The obscenely large derivatives books of J.P. Morgan and other select money center banks are being used to execute U.S. monetary policy and to achieve other arbitrary financial market outcomes. This has been occurring since at least the mid 1990’s and severely ramped-up in the mid 2000’s.

... B of A, Citibank, Goldman Sachs – all with derivatives books ranging from 44+ to 79+ Trillion [dollars] in size. Take note of the TOTAL derivatives for Commercial Banks at 243 Trillion (see linked article):

  • Derivative books (in trillions)
  • Derivative notions chart(in trillions, by user group
  • Derivative charts on oil

Mark Twain related forums:

Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Blackjack operators can

Blackjack operators can easily survive virtually indefinitely with similar exposure. As long as the $88trillion is the sum of enough smaller, independent, exposures with known probabilities, it's really not that bad.

I'm not saying this is the case at JPM, or that I have any clue (nor concern) whatsoever how their risk profile looks, but simply throwing out a big number like that isn't particularly useful for, really, anything other than fear mongering.

Only one side reports on $200 Trillion Pile of Contracts!

Note the chart shown at the bottom of the link shows contracts approaching $200 Trillion. The banking cartel is clearly reported on one side of the contracts. See lines going off the top of the chart.

The counterparty is a mystery. See the line bumping along the bottom of the same chart. Who wants the these toxic assets? To whom are they sold? For whom does the bell toll?

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Savers are done for

All this monopoly money floating around can only be reigned in with massive interest rate hikes imo. This will not happen so I am really at a loss where in the hell to go?

p.s. we do have to eat and drink to live, I think I shall begin to get ready to start bartering lol

The banks are not going to take a haircut on these derivative losses, what then?

Mark Twain has to be one of the most knowledgeable people here, thank you for enlightening us.


btw, I did not do well in calculus, damn derivatives :/


Cheer up. You are not chomping at the bit. You are not reigned.

Though a fast horse may lead a pampered life in a country club barn, it would likely prefer free range. Free as the wind to run... Or, as in my case, relaxing & napping.

"All this monopoly money floating around can only be reigned in with massive interest rate hikes imo." - DonVino, 2011

    Whoa boy! Steady. Steady. Nearly everyone paid little attention to this nonsense all their years. Why should you awake & be obliged to pay principal or interest now? Nonsense. Where does out-of-thin-air come from? Treat it for what it is. A plague. Undelivered as addressed. Return to sender.

"This will not happen so I am really at a loss where in the hell to go?" - DonVino, 2011

    I am not sure about Heaven nor Hell. If you are fixing to go one way or 'ther... may I suggest you pack light. Look for kin & friends when you arrive.

"Mark Twain has to be one of the most knowledgeable people here, thank you for enlightening us." - DonVino, 2011

    Surely a stretch. Told so well, I hope others believe you.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

So JP Morgan

has about one eightieth in assets compared to money floating in the derivative market. I don't quite understand what a derivative is, is this the speculator market that pushes up prices on commodities? Please clarify, thanks.

Those who expect to reap the blessings of freedom must. like men, undergo the fatigue of supporting it.-Thomas Paine

The R3volution requires action, not observation!!!!

Depth of Deception is Far Greater Than 2 Fathoms.

DC Far GT 2 Fathoms. Derivatives are not really liquidity. They are sinkers.

Extracting & condensing from the article, let us look @ just Morgan Stanley.

$42 T + $9 T = $51 Trillion (nonsense book value; toxic assets)

Comparing Total Derivatives in TABLE 1 [Commercial] versus TABLE 2 [Holding Co.] Morgan Stanley’s derivatives book went from 42.1 Trillion at Dec. 31/10 to 51.2 Trillion at Mar. 31/11 – THAT’S an increase of 9.1 TRILLION in three months at an institution with a market capitalization of 35 billion. Even if you’re asleep and have your head buried in the sand, you’ve got to admit that 9.1 TRILLION ramp in business in 3 months for a company with a 35 billion market cap is quite a feat, eh? These interest rate derivatives HAVE 2-WAY CREDIT to COUNTERPARTY RISK.

Morgan Stanley's feat outlined above, becomes even more unbelievable when you stop and consider that... there are virtually NO DECLARED or IDENTIFIABLE END USERS [counterparties] for these products
(see the line chart with the bottom line bumping along the bottom... meaning nary a end user (counterparty) interested in buying the other side of this nonsense).

Sinkers don't add up. They sink down. No market for sinking ships.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Thank you for the clarification

Mark Twain, I get it a little bit more, but not quite the whole way. Keep up the great work!!!!!

Those who expect to reap the blessings of freedom must. like men, undergo the fatigue of supporting it.-Thomas Paine

The R3volution requires action, not observation!!!!

Oblique. Not even the ones creating this mess get it.

None get it right... for it is wrong. They are not organized; neither is crime. Though Organized & Crime both claim each other's rights, neither is both. Neither is right.

Resolve, as I do, to set out each day to make things better... Just better. Fix what needs fixing. Ask for a lot of help from those you trust; trust whom you help.

Webster's 1913 Dictionary Definition:
\Ob*lique"\, adj. [F., fr. L. obliquus; ob (see {Ob-}) +
liquis oblique; cf. licinus bent upward, Gr ? slanting.]

  1. Not erect or perpendicular; neither parallel to, nor at
    right angles from, the base; slanting; inclined.
      It has a direction oblique to that of the former motion. -Cheyne.
  2. Not straightforward; indirect; obscure; hence,
    disingenuous; underhand; perverse; sinister.
      The love we bear our friends . . . Hath in it certain oblique ends. --Drayton.

      This mode of oblique research, when a more direct one is denied, we find to be the only one in our power. --De Quincey.

      Then would be closed the restless, oblique eye. That looks for evil, like a treacherous spy. --Wordworth.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul


This is truly scary stuff. If the article linked could be "dumbed" down and distributed to the average reader, Ron Paul would be a shoe in.

This Is What I Have Been Warning The Silver Bugs About

J.P. Can't loose! They are the fed, they are the right hand of the Empire. They execute public policy by manipulating markets. Today it is silver, tomorrow wheat to starve out the Egyptians. J.P. Can loose no money in any of it's policy actions because there is no money! The losses are simply accounting entries which are erased from their books!

The only solution is to for us to stop using their federal reserve notes and stop absorbing J.P. Morgan's losses. We pay for their losses. In fact everyone in the world pays for J.P. Morgan's losses.

Stop using federal reserve notes. Only use silver, gold, dollar coins or credit offset accounts with other merchants.

You are supporting J.P. Morgans evil schemes if you don't get out of using their debts as money.

The Oracle

I hear what you are saying but...

Businesses don't accept any currency except FRNs, though. Due to legal tender laws, the only place silver & gold can be used as money is in the underground economy. Until the laws are changed, I don't see how we can make an impact.

If you know of a resource detailing how to operate outside of the Federal Reserve System, I would eagerly read up on it.

Lots Of Businesses Accept Other Currencies!

You can use Euros, Yuan, Swiss Francs, Postal Money Orders, even Stamps which are gold backed to conduct trade in America. Many small businesses, farmers, etc, will accept these. Additionally The United States Merchant Association Cannot refuse a presentment of a foreign bill of exchange. By the way if you live outside D.C. You are foreign to The United States.

I currently have several thousands in my own private currency in use with other merchants, this is another partial solution to exchanging value. It is not so difficult to completely avoid The Federal Reserve System. I have been able to. About the only thing you will have some trouble with is the big merchants like the electric company. You can mail them half dollar coins but it's a bit cumbersome. I suggest using a postal money order for mailing value. Or you could just use the check the electric company is sending you every month attached at the bottom of the statement of your account. I prefer to use the payment coupons only on large bills and send them by notary presentment. The process is too pricey for nickel and dime stuff but if you want to pay off your house with the check attached to your monthly statement of account then it's worth a couple hundred to get the transaction done by the book.

Don't think the fed is your only choice to conduct trade or it will be!

See Winston Shrout's YouTube videos, also look up Law Merchant Law, Postal Money orders, small claim court (no s), foreign bills of exchange, etc., etc.

Amounts lees than one DOLLAR are Republic coins, substance money, and are exempt from the statutes governing the democracy and federal reserve notes. It is the money that you use which determines your standing in the world and your rights.
Gold is the money of Kings,
Silver is the money of free men,
Credit is the money of merchants bound to each other by their word,
Barter is the money of peasants,
Others Debts is the money of slaves.
Use Federal Reserve notes and you are legally their slave, it is not worth it.
Use rocks if you must but avoid the federal reserve notes and funds like the plaque on humanity that they are.

The Oracle


Well you're almost speaking a different language than me, so I have a lot of research to do.

My wages are paid by check that I redeem at a bank for FRNs, I doubt the business I work for will agree to pay me in silver bullion or postal money orders or 50-cent pieces. I still have to dirty my hands with FRNs to get those items, and the person or business who accepts them is just as guilty as me for conducting trade with them.

I'll do some reading, but the light bulb hasn't clicked on yet.

No Problema! Michael Nystrom just discovered a Billion Dollar

Coins are sitting in the Feds vaults. Just ask your bank to order you a box every payday.
No more federal reserve notes or "magical Funds"!
I use the dollar coins at the supermarket, gas station, etc.
I like the half dollar coins for the bar etc.
Silver is for trade with private businesses, credit is for use among merchants I know, barter with a few peasants for eggs and a side of beef, postal money orders to pay the occasional out of town bill. Which leaves only the occasional Internet item that I put on the credit card. I could send a postal money order I suppose but until somebody shows me a gold backed credit card I'll support the fed 5% for the conveenience.

Break down the problem into smaller solutions and you can get the fed out of your life. Of course by doing so you help defund the Wars, welfare State, debtor prison system, and out of control global corporations. All good and worth the adventure involved in getting out of dealing in federal reserve debt.

You can do it!
The Oracle

I realize we're rapidly getting off-topic

A Dollar FRN and a Dollar coin are the exact same thing. Kennedy 40% silver coins were different, but the coins they make today are still debt-backed currency. You said yourself, these coins are sitting in FED vaults... I'm not sure there could be a stronger signal than that. If the coins contained silver or could be redeemed for silver, then I would agree with you.

If you're suggesting that you buy junk silver coins (aka old 90% silver coins) and spend them around town, how do you get people to accept them for anything but face value?

Well if you are paid

in Silver, you avoid taxes because the face value of the American Silver Eagle is $1. So lets say you make $700 a week. That would be about 17 ounces of Silver you would accept for your weeks work right? So on your tax forms you only have to claim $17 of income....Right?? Since each ounce has a monetary value of $1 (Face). Game on!

I remember reading a story...

about a business who tried paying its workers in silver and gold and they got busted by the IRS. Gold & Silver Eagles are not allowed to be used as currency. Ron Paul will tell you that they ought to be allowed, but if you try this right now you're taking a huge risk.

Better Yet Only Federal Reserve Note Use is Taxable

Oh, on how many levels do you want to discuss this? The IRS is an independent third party debt collection agency. They collect funds for the IMF. The income tax only applies to use of the federal reserves private currency. Nothing wrong with that. It is their system. Of course they don't mention the income tax is payable to the American People not by the American People. When your brain expands a bit regarding finance perhaps I will explain that one! Sales tax is another one we are too young to understand. A sale is an exchange using a negotiable instrument! Nothing you exchange substance money for is a "sale" only a private trade. Sales using negotiable instruments are taxable for the privilege of acting in commerce using negotiable instruments. Using coins is not a privilege.
Why do you think they stole all the Gold and then ran Silver out of circulation? So they could shove their private monopoly money currency on us and tax the living crap out of us "for the privilege" of using their paper!
Nuts! Bastards!

All private trades using coins are non-taxable and you actually get to own what you trade for instead of it still being "in commerce" and belonging to The United States Merchant Association. You never took it out of the supply chain and paid for it in credit or coin, so it's not yours.
You don't own anything you "buy" with a federal reserve note. If you buy something you are showing intent to resell it since you can't own anything that you used someone else's debt instrument to obtain. If you signal you intend to resell an item by buying it as opposed to purchasing it with your own credit or trading privately in substance coin for it, then you are "acting in commerce" by buying AND selling.
That is the definition of Commerce, to buy AND sell. That's where congress gets you, your use of the fed notes to buy and sell yet never actually own anything, you are just acting in commerce, which falls under their commerce clause. Did you get all that?

By the way, I puque at the mention of the bully money monopolists.

The Oracle

O.K. that's actually...

O.K. that's actually pretty trick if you could get everyone on board.

If I disappear from a discussion please forgive me. My 24-7 business requires me to split mid-sentence to serve them. I am not ducking out, I will be back later to catch up.