Dear CIGAs,

Please note the open interest in the December $1000 calls.

Click chart to enlarge

Jim,

Break Down of Total Bank Credit Growth: Year-over-Year Growth for Total Loans, Business Loans, Real Estate Loans, Home Equity Loans, Consumer Loans, and Cash Assets for Commercial Banks in the US:

Comments:

The crisis intensifies as the Nov 2008 swing high is breached to the upside in May 2009. This flies in the face of the green shoots spin.

Business, consumer, credit card (& revolving) and commercial real estate loan growth rates decelerating rate. Real estate loans, driven by other residential and home equity loans, growth rates continue to expand. Fractional reserve banking is like a shark, credit must continue to expand (swim) or it faces death. As a result, the unprecedented panic, as reflected by the speed and magnitude of the coordinated quantitative easing, to unclog the credit markets and restart lending process.

Best,
CIGA Eric