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originally posted by: rickymouse
I can't see the US economy lasting more than a few years. We are nearing the end. All the land our government owns will be turned over to creditors. We just squat on the land and pay taxes, we do not own it..
From 2006-2008, Jack Lew was chief operating officer of Citibank's alternative investments division. And it was his division that made billions of dollars betting "U.S. homeowners would not be able to make their mortgage payments," as the Huffington Post reported. The piece also reported: “Lew made millions at Citi, including a bonus of nearly $950,000 in 2009 just a few months after the bank received billions of dollars in a taxpayer rescue, according to disclosure forms filed with the federal government. The bank is still partly owned by taxpayers
originally posted by: James1970
Who Will Bailout
the Next Crash?
You will, and your children, and your children's children, and your children's children's children, and your children's children's children's children, and your.... - ahhh you get it.
originally posted by: tridentblue
a reply to: xuenchen
Its a death star configuration! I had to read up on derivatives, but it appears that if Goldman Sachs for instance, had 1/54th of their derivates called in, it would be all their assets. But that presumably doesn't matter, as they would have that contingency covered with other derivatives through other banks, covering their exposure.
So its this super powerful money making machine, armored on every side, except the unique possibility will always exist of a small event with calls in assets of one bank, which draws a bunch from another bank, which destabilizes a tottering industry, which lowers market confidence, which causes another tottering business to collapse, which creates a chain reaction where derivatives called in exceed all assets (because all the banks are insuring each other) which blows up the entire industry because they're all connected through derivatives...Whereas if they weren't the bad event would be contained to a few unfortunate businesses and competition would commence.
So its super powerful, except for certain points which will arise with the potential to blow up all of Wall Street. Its a death star configuration.
originally posted by: marg6043
a reply to: GoalPoster
Exactly!!!!!, we are still bailing out the last crash, is now call, QEs and they are been given away monthly since the last crash in 2008, trillions and trillions.
originally posted by: Serdgiam
I do believe there are solutions though, given its a relatively modern problem. Just have to counter a defeatist attitude with creativity and determination. If there are no solutions, period, then humanity is doomed with derivatives until the end of time. I am not convinced that is the case.