Oh Zerohedge, you always know how to cheer me up...

Discussion in 'Economics' started by brokershopping, Jun 5, 2011.

  1. "The Real "Margin" Threat: $600 Trillion In OTC Derivatives, A Multi-Trillion Variation Margin Call, And A Collateral Scramble That Could Send US Treasurys To All Time Records..."


    "While the dominant topic of conversation when discussing margin hikes (or reductions) usually reverts to silver, ES (stocks) and TEN (bonds), what everyone so far is ignoring is the far more critical topic of real margin risk, in the form of roughly $600 trillion in OTC derivatives. The issue is that while the silver market (for example) is tiny by comparison, it is easy to be pushed around, and thus exchanges can easily represent the illusion that they are in control of counterparty risk (after all, that was the whole point of the recent CME essay on why they hiked silver margins 5 times in a row). Nothing could be further from the truth: where exchanges are truly at risk is when it comes to mitigating the threat of counterparty default for participants in a market that is millions of times bigger than the silver market: the interest rate and credit default swap markets...."
  2. Reading Zero Hedge is Luke reading drudge report...
  3. Another idiotic article with a meaningless idiotic number...
  4. Ughhhhhhhh someone put that site out of business already. Whenever i see it I always think of infowars garbage for some reason
  5. Butterball


    Misleading, under-researched article with an overly dramatic headline. Must be another BS article from the college kids at zero hedge.
  6. Agreed. :cool: