Global Guerrillas runs the numbers on the unregulated shadow banking system that has no lender of last resort (like a central bank) standing behind it because the entities involved for the most part, aren’t banks.
Total value of the shadow banking system (unregulated and unsupervised): $516 Trillion.
US GDP ~ $13.86 Trillion (PPP).
Positions held by Bear Sterns ~ $13.4 Trillion (underlying assets ~ $80 billion).
Positions held by JP Morgan Chase prior to Bear Sterns acquisition ~ $77 Trillion
Some, maybe most of those numbers are trades that balance each other out. But even with that, you’re talking trillions in unregulated, difficult to understand and sometimes even harder to sell securities. This is why the credit markets are freezing up. No one trusts any one because who knows what hidden financial icebergs might come crashing into the hull unexpectedly.