Deutsche Bank Derivative Exposure = 5 x Eurozone GDP

ZeroHedge (Feb 3, 2016) - Time to panic about Deutsche Bank?

The exposure of Deutsche Bank to its derivatives portfolio is a stunning EUR 64 Trillion, which is 16 times the GDP of Germany and roughly 5 times the GDP of the entire Eurozone! And to put things in perspective, the TOTAL government debt of the US government is 1/3rd of Deutsche Bank’s exposure - impossible for any government to bail out Deutsche Bank should things go terribly wrong.

Derivatives | The Unregulated Global Casino for Banks

This is 1 Trillion Dollars.
Source: Demonocracy.info

SHORT STORY: Pick something of value, make bets on the future value of "something", add contract & you have a derivative. Banks make massive profits on derivatives, and when the bubble bursts chances are the tax payer will end up with the bill. This visualizes the total coverage for derivatives (notional). Similar to insurance company's total coverage for all cars. 

LONG STORY: A derivative is a legal bet (contract) that derives its value from another asset, such as the future or current value of oil, government bonds or anything else. Ex- A derivative buys you the option (but not obligation) to buy oil in 6 months for today's price/any agreed price, hoping that oil will cost more in future. (I'll bet you it'll cost more in 6 months). Derivative can also be used as insurance, betting that a loan will or won't default before a given date. So its a big betting system, like a Casino, but instead of betting on cards and roulette, you bet on future values and performance of practically anything that holds value. The system is not regulated what-so-ever, and you can buy a derivative on an existing derivative.

Most large banks try to prevent smaller investors from gaining access to the derivative market on the basis of there being too much risk. The derivatives market has blown a galactic bubble, just like the real estate bubble or stock market bubble (that's going on right now). Since there is literally no economist in the world that knows exactly how the derivative money flows or how the system works, while derivatives are traded in microseconds by computers, we really don't know what will trigger the crash, or when it will happen, but considering the global financial crisis this system is in for tough times, that will be catastrophic for the world financial system since the 9 largest US-banks shown below hold a total of $228.72 trillion in Derivatives - Approximately 3 times the entire world economy (see chart below). No government in world has money for this bailout. More detailed information on these 9 banks HERE

The unregulated market presents a massive financial risk. The corruption and immorality of the banks makes the situation worse. If you don't want to bank with these banks, but want to have access to free ATM's anywhere - most Credit Unions in USA are in the CO-OP ATM network, where all ATM's are free to any COOP CU member and most support depositing checks. The Credit Unions are like banks, but invest all their profits to give members lower rates and better service. They don't have shareholders to worry about or have derivatives to purchase and sell. Keep an eye out in the news for "derivative crisis", as the crisis is inevitable with current falling value of most real assets. 
 

9 Biggest US-Banks' Derivative Exposure - $228.72 Trillion
Source: Demonocracy.info

The Mother of All Problems | Blythe Masters

She increased the derivatives exposure to USD 70 Trillion -
J.P. Morgan's CDS-Guru Blythe Masters:
"Don't Panic. No one's going to get screwed." (HERE & HERE)

Aged 22, smart Blythe Sally Jess Masters joined J.P. Morgan Chase and invented the modern Credit Default Swaps. 

This not only earned her the title ‘J.P. Morgan's Credit Derivatives Guru’. She was promoted to serve as the bank's Head of Global Credit Portfolio. Finally she ended up being Chief Financial Officer of J.P. Morgan's Investment Bank and Head of Global Commodities (HERE).

Earlier this year Ms. Masters decided to set her sights on the final financial frontier: She is now CEO of Digital Asset Holdings, a Bitcoin-related start-up seeking to streamline financial transactions (HERE).

Hitting the Fan | Deutsche Bank in Pre-Infarct State of Imminent Bankruptcy

On June 7, immediately following Greece’s missed payment to the IMF,
Deutsche Bank’s two CEOs announce their surprise departure from the
company (HERE)

Deutsche Bank is the 12th biggest bank worldwide and harbours USD 75 trillion in derivatives bets — an amount twenty times greater than the German GDP (USD 3.64 trillion in 2014). Deutsche Bank is the world’s largest  holder of derivatives exposure and dwarfs J.P. Morgan’s exposure by USD 5 trillion (HERE). Deutsche Bank - along other global banks - was engaged in a slew of corrupt practices from manipulation of interest rates (for which the firm was fined USD 2.5 billion in April 2015), to tax evasion and money laundering to “mis-selling” of derivatives. 

If Greece defaults at the end of June, Deutsche Bank will lose 50 to 100 billion Euros in Greek bonds and be caught off-side in its derivatives positions. And there is no government nor institution on earth to bail it out. 
More HERE