Sometimes a chart is all you need
Those that have been around here the longest know for a fact that I love to wallow in the really scary, bad stuff.
I used to call him "The Angel of Death" and everybody at my office would know exactly who I was referencing.
Here's a simple chart and some analysis from Mr. Weiss concerning our ongoing adventure in debt.
Not for the faint of heart.
As always click on the chart in order to link up with the entire piece.
Lie #3. They insist that America’s largest banks are safe.
The truth: The largest U.S. banks continue to hold nearly all of the derivatives in the country.
Goldman Sachs has $44.9 trillion in derivatives.
Bank of America has $52.5 trillion.
Citibank has $54.1 trillion.
And JPMorgan Chase towers over all others with $79.5 trillion of these potentially dangerous investments.
In total, JPMorgan, Goldman, Citibank, and the BofA alone are exposed to $234.7 trillion in derivatives. In contrast, among the thousands of other U.S. banks, the grand total of derivatives is a meager $9.3 trillion. In other words, these four banks are exposed to more than 25 times the sum total of all derivatives held by every other bank in the United States.
Never before has so much financial power — and risk — been concentrated in the hands of so few!
Yes, these numbers, reflecting the “notional” value of the financial instruments at play, are far larger than the actual amounts invested. But still, the risks are huge …
- The derivatives held by Bank of America are 36 times larger than TOTAL assets;
- At JPMorgan Chase, they’re 46.1 times larger than the assets;
- At Citibank, 46.6 times larger; and
- At Goldman Sachs Bank, a shocking 533 times larger!
Yes, in recent months, some banks have reduced somewhat their exposure to defaults by their counterparties. But here again, the exposure remains massive: According to the OCC, for each dollar of capital …
- Bank of America has $1.82 in credit exposure to derivatives;
- Citibank also has $1.82;
- JPMorgan Chase has $2.75; and
- Goldman Sachs is, again, at the greatest risk of all — with $7.81 in credit exposure for each dollar of capital.
That means that if JPMorgan’s counterparties defaulted on 36% of their derivatives, every last dime of the company’s capital would be wiped out. And at Goldman Sachs, defaults on just 13% of its derivatives would wipe out its capital.
We don't have to so much anymore, as long as our friend Kelly P. skulks over there almost daily and sends us a heads up whenever she likes something.
Here's two more interactives pretty much on the same subject.
Perhaps not the most cheerful of topics, but we like the pretty colors.
As always, click on the map for the entire piece.
The chart is so good at making it's point I don't think you necessarily need the editorial, but if you want it you can link it up by clicking on the chart ..... as usual.
This is pure human nature at work here.
If most of your profits are going to go to the government anyway but your losses are your own, why bust your ass, why put your capital at risk, why do anything other than the bare minimum?
If you want some more revenue for public development, your social programs, a couple more wars or straight out vote buying, you are going to have to figure out how to grow the economy.
They also offer a US Peace Index interactive.
You can drill down from each country and compare the criteria they use to establish their comparisons.
As always, click on the map to access this very well done interactive.
Check out Uruguay you silly, silly naysayers.
From the NOAA Satellite and Information Service.
Click on the chart for the entire story.
The period through the end of May, 2011 was marked by numerous large severe weather outbreaks, causing a record-breaking tornado year for the year-to-date period. Approximately 1,400 preliminary tornado reports were received by the National Weather Service during the January–May period, and 875 of those tornado reports were during the month of April alone.
Terrible and beautiful at the same time.
We've posted several different charts demonstrating this same idea over the past couple of years.
When people start talking about Governments defaulting on their obligations via inflation, this is exactly what they're talking about.
You might want to think that the price of Gold or stocks or gasoline or cornflakes is going up.
When what is really happening is that the purchasing power of your Dollar or Euro or Pound is going down.
And they're all doing it.