# too big to fail are too big to rescue



## Dirk (Mar 4, 2015)

When reading about the US and European banks. It looks like they are bigger than ever. Especially when I read about the numbers of derivative exposure. I don't know what this all means but like the Deutsche bank has a 75 trillion dollar derivative exposure sounds a lot. Do you think these banks are too big to rescue?


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## Camel923 (Aug 13, 2014)

At some point something has to give..


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## 8301 (Nov 29, 2014)

If they've got 75 trillion in derivative bets they are more of a casino than a bank.


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## Ripon (Dec 22, 2012)

There is another way to view the derivative market as a hedge against that very failure. A hedge that makes someone trillions while others lose, and someone who would ONLY lose if the too big failed....hence they can't afford to let it happen and thus won't. Let's try this again....

You bet $1,000,000 (simple little million) at a casino on a pay out of 25 to 1. You win. Only problem is the casino only has 15 million to pay you. Do you take your 15 million and bust it so it can't pay you the other ten? Not smart, and the derivative bet is far bigger so they don't want anything busted.


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## Dirk (Mar 4, 2015)

Ripon said:


> There is another way to view the derivative market as a hedge against that very failure. A hedge that makes someone trillions while others lose, and someone who would ONLY lose if the too big failed....hence they can't afford to let it happen and thus won't. Let's try this again....
> 
> You bet $1,000,000 (simple little million) at a casino on a pay out of 25 to 1. You win. Only problem is the casino only has 15 million to pay you. Do you take your 15 million and bust it so it can't pay you the other ten? Not smart, and the derivative bet is far bigger so they don't want anything busted.


I can imagine that indeed they try to protect this kind of market as long as possible. But I also can imagine that at some time they think enough is enough.


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