J.P. Morgan's is eight times greater. That means if just 12.5% -- a mere one in eight -- of its bets on derivatives go bad, J.P. Morgan is broke. Bankrupt. Kaput!
And if you think heavy derivatives risk is limited just to these huge money center banks, please think again: Right now, 389 commercial banks in the US trade in financial derivatives!
Any major global economic hiccup could easily trigger TRILLIONS of dollars in derivatives losses at US banks - and sink the entire system.
In fact, the US General Accounting Office even has a name for the kind of risk derivatives pose. It's called "System Risk" -- the risk of GLOBAL FINANCIAL MELTDOWN.
The GREAT Debt Debacle of 2001-2002
When that happens, you're going to see millions of Americans temporarily penniless while the feds try to pick up the pieces. You're going to see global confidence in the US economy and in the dollar tattered and torn. And, you're going to see blood flow hip-deep on Wall Street.
Wall Street's $6 Trillion Crash ALONE Is Enough
The greatest stock market orgy of all time recently turned into the greatest stock crash since 1929. But the hangover is not yet over - and it's going to be a living hell.
The first shot in this financial massacre was fired last year - on March 25 - and it inflicted a gaping head wound on the US economy.
I'm talking about the stock market crash that robbed US investors of nearly $6 TRILLION - an amount equal to about HALF this nation's total GDP!
In sheer dollar terms, unadjusted for inflation, this has been the largest loss of wealth in the history of humanity, dwarfing the "great" stock market crash of 1929 by a factor of 23 to 1!
And that crash lit the fuse on the worst depression this nation has ever suffered.
You can bet your bottom dollar that the devastating losses we've seen recently guarantee economic catastrophe and another vicious slaughter of US stocks and equity funds in 2001!
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