The Amazing Proportions of Bank Derivative Exposure

Ulla: On a blog by “American Kabuci” I found this post worth reposting (thanks for finding this visual treasure trove!):

 http://americankabuki.blogspot.de/2012/04/amazing-proportions-of-bank-derivative.html 

Quite an amazing graphic representation of the world wide derivative exposure of  major banks at

http://demonocracy.info/infographics/usa/derivatives/bank_exposure.html.

The numbers are so large its hard to wrap your brain around it without some spatial cue that mere mortals, like me, can understand.

The graphs represent the amount of derivatives banks have on their books if they were paid in pallets of $100 Billion worth of $100 dollar Federal Reserve Notes.  The pallets are too small to see in this graphic – go to the web site for a better idea of what these numbers mean.

The graphic below is just for JP Morgan Chase. Other banks are also represented at the web site.

JP Morgan Chase has a derivative exposure of $70.151 Trillion dollars

The website shows some beautiful graphics that help us wrap our minds around the humongous derivatives market.

Anyone care to comment feelings, thoughts and insights around these images?

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