Bank Exposure To Bad Hedges and Counterpary Risk Is Still Quite Relevant: A 10% Decline in Derivatives Books Can Cut up to 50%+ Out Of Bank’s Equity

"There is a sharp drawdown coming in both MBS and sovereign CDS land if the accounting numbers and the institutional investment sheeple get even a whiff of reality. I am working on the Spain haircut numbers (and yes, Spain will have to restructure in some form or fashion, be it maturity extension, coupon reduction, haircut – or a combination of the three) and anyone who has read my work has seen the housing numbers and opinion – as well as my historical accuracy. "