"When we are the victims of an illusion we do not feel it to be an illusion but reality. It is the same with evil. Evil when we are in its power is not felt as evil but as a necessity, or duty. Once a certain group of people has been placed outside the ranks of those whose life has value, then nothing comes more naturally than murder. As soon as men know they that they can kill without fear of punishment or blame, they kill; or encourage killers with approving smiles." Simone Weil
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
