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Originally posted by bartholomeo
Banks have always been able to lend 10 times more money than what they actually have, so if bank of america only has 10 million dollars in cash they are able to lend 100 million in loans with the corresponding interest to each loan.
Actually, that is not entirely true. The 1/10 rule was not in place until the banks caused the Great Depression. And when it was implimented, they almost immediately pulled a lawyerly way of prevaricating and deceiving, to further their robbery. What they do is put the $1 in the vault, and try to loan out $9. Then they would 'technically' still have the 1/10. But they are loaning out money that they are 'creating'. Before the GDepression, they loaned out with no reguard to having any deposits at all. And I believe they managed to loan out about 9 times what they had in deposits. So with this new rule imposed by their 'employees' in the government, they appeared regulated, but in fact there was almost zero difference made in the way they previously ran their counterfeiting operation. A bank typically 'made' 1200%, and paid out 2 or 3% to depositors. I propose that any bankster running this counterfeiting operation and still declaring bankruptcy should be drawn, hung, and quartered, featured on cable tv. Not too politically correct, but neither is a scam empowered by our Federal owners. Not legal, but very doable, and practical. We are currently a lawless country. Just ask any lawyer, judge, bureaurat, or cop. The law only applies to us slaves.l
Originally posted by wonderworld
reply to post by tide88
I must tell you that the purchases of Merrill nad countrywide will be Bank of Americas worse move yet. It will cause them to fail.
agree that leaking the stress test may have been intentional
"By looking at wall street today,, I think we are in for a rude awakening. BOA showed a profit in the first quarter, yet everyone sold due to retail and commercial concerns.
Either Volcker or Obama will soon come out with the truth. they cant hide it any longer..."
Originally posted by flyboyscott68
I think he is spot on with this. The total diriveative market is 1.5 QUADRILLION. He is right. The banks are insolvent. He might be off a little in the exact numbers, but, he is right. They are already gone.
President Barack Obama is scheduled to get a progress report on the tests today during a meeting with his economic team.
“It is premature for banks to talk about the stress tests,” Talbott said yesterday. “They aren’t finalized yet and there is no framework to evaluate the results
At one of my recent Harvard seminars, a graduate student proposed a clever scheme to do exactly that. (I will let the student remain anonymous. In case he ever wants to pursue a career as a central banker, having his name associated with this idea probably won’t help.