Using the IMF’s analysis the world’s $600 Trillion derivatives markets are leveraged 1000 to 1!!!!! The IMF wonders where the actual underlying collateral would be if things started to go wrong. Is this underlying fragilty part of the reason why supervision of the big banks has become so unconventional?

Broken Money, Broken Markets
Today’s new highs are increasingly mechanical, not fundamental — and in a broken market, your 401(k) is the exit liquidity.

