Breaking:5 Major US banks face massive (trillions) default on credit default swaps within weeks

[stockholmer]

The 5 US largest banks have 96% of credit default swaps out there. As Euro defaults kick in, parties become contractually obligated to make huge payouts to the relevant derivative partners. We are talking amounts potentially in the tens of TRILLIONS, due to insane levels of leverage. Morgan Stanley will be the first to go, followed by Wells Fargo, Citibank, and JP Morgan. Goldman Sachs, as usual, is the least exposed if a credit default event is declared, IMHO.

Watch the actions of ISDA, (International Swaps and Derivatives Association) http://www2.isda.org/ they in charge of determining when a "credit event" occurs.

The interviewee, Jim Sinclair, is a billionaire, 50+ year investor, one of the 'old lions' of Wall Street. Sinclair’s father, Bert Seligman was the business partner of the legendary Jesse Livermore, the "Great Bear of Wall Street" (Livermore traded from the 1890's to 1940).