Markets are behaving dangerously but central banks have their heads in the sand – Sydney Morning Herald

Losses from the derivative exposures of some of the worlds largest banks to a previously unknown private family office of a man who pled guilty to insider trading have now topped $US10 billion.
Credit Suisse ($US5.7 billion), Nomura ($US2.9 billion), Morgan Stanley ($US900 million), UBS ($US860 million) and two smaller Japanese banks who have lost $US400 million between them have been caught up in one of the worlds largest, and one of its quickest, collapses of a private investment vehicle after…

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