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Starker Fall der langfristigen US-Treasury-Bonds - der zweite Sargnagel für JPM neben den Gold und Silber Shorts:
As I pointed out to you on many occasions, it is the rapid fall in bond prices that are disturbing the bond derivatives. You see there are over 70 trillion img.wallstreet-online.de/smilies/eek.gif" style="max-width:560px" />
img.wallstreet-online.de/smilies/eek.gif" style="max-width:560px" /> dollars of interest rate swaps owned by the bankers and the majority is owned by JPMorgan. In a nutshell, these guys have bought trillions of long bonds in the future and shorted an equal supply of short term say 30 days notes at zero yield. Thus a rise in future bond yields of say one full percent is causing massive dollar losses for JPMorgan ie. say 40 trillion x 1% interest rate loss = 400 billion dollars enough to wipe them and just about every other banker into oblivion. This is the paper default that I say will happen. The other default of course is a physical default which will produce the same bank run.
Dan Norcini commented on this today and he signalled the huge problems facing the banking industry as nobody wishes to hold usa bonds.
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