ITM Trading Podcast đ¨ $223 TRILLION Derivative Crisis as U.S. Banks Prepare for Bail-Ins
Nov 2, 2025
The discussion unveils alarming statistics about U.S. bank derivative exposure, raising fears of systemic risks. Complex derivatives are hiding troubling financial realities since the 2008 crisis. Failures in subprime auto lending could signal deeper financial troubles. The handling of depositor funds in possible bail-ins is critically examined, alongside the repercussions of past bailouts. The risks to depositors are linked to rising defaults and inflation, with a strong recommendation to safeguard wealth through physical gold and silver.
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Hidden Trillions In Derivative Risk
- U.S. banks hold about $223 trillion in derivatives, creating massive hidden systemic risk.
- These exposures are larger and more complex than pre-2008 and sit atop layers of leverage and debt.
Subprime Auto Failures As Early Warning
- Taylor Kenney describes collapsing subprime auto lenders like PrimaLend as early warning signs of wider credit stress.
- He recounts how risky auto loans were bundled and repackaged into AAA-rated products that masked defaults.
Layered Financialization Multiplies Risk
- Risk compounds when risky loans are sliced, pooled, and layered into complex derivatives far from the original asset.
- Defaults on base loans can trigger cascading failures across those layered financial products.