Based on the total volume of securities involved, BofA could potentially be on the hook for hundreds of billions of dollars, says Chris Whalen of Institutional Risk Analytics, a research firm.
Sometimes, however, says Christopher Whalen of Institutional Risk Analytics, “the waves in the ocean are so big that it does not matter how big the boat is.”
This may be keeping the rate at which big Banks borrow from each other higher than it would otherwise be, thinks Mr Whalen (though it has fallen from its peak last month).
As VIEWED by Christopher Whalen, America's financial history has been one losing battle after another against the "twin demons" of debt and inflation.
The market's overseers may not agree with Christopher Whalen of Institutional Risk Analytics, a consultancy, when he describes off-exchange derivatives as an “act of Satan”.
Mr Whalen looks forward to the day when the greenback is no longer the world's sole reserve currency, a status that gives America "a free ride" on fiscal discipline.
"When Banks can't find yielding assets and their book is shrinking, the cash flow on their book is shrinking," said Whalen of Institutional Risk Analytics.
Mr Whalen is not alone in wondering how the American economy will cope without a buoyant property market.
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