In one word: SCARY !!!
Banks deleveraging ?
Private households were forced to deleverage , consumer credit is down ca. 4% from 2008, but otherwise nothing has changed! Banks ( and other financial institutions ) have actually increased leverage.
From Allan Newman’s Stock Market Crosscurrents :
If we are correct in our assessment of the threat to the financial system, at least $2.2 trillion is now at risk (!% of total notional values). The banks with the two largest derivative portfolios are JPMorgan Chase (JPM) and Bank of America (BAC), with notional values of $75.3 trillion and $48.5 trillion, respectively. These two banks alone represent 56% of all notional values.