"If at the start this cancerous growth in the nation was not particularly noticeable, it was only because there were still enough forces at work that operated for the good, so that it was kept under control. As it grew larger, however, and finally in an ultimate spurt of growth attained ruling power, the tumor broke open, as it were, and infected the whole body." The White Rose, Munich 1942
I have not looked at this in some time. The amounts are still quite impressive and highly concentrated in a handful of the TBTF banks.
As in the case of LTCM, leverage is a source of income, the higher the leverage, the greater the profits from which you can claim and take your salaries and bonuses.
Here is how things looked in the middle of 2008 Derivates Report June 30, 2008
