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The banks want the taxpayer to be held accountable.
...the total exposure is unknown because Wall Street successfully lobbied during Dodd-Frank passage so that no central exchange would exist keeping track of net derivative exposure.
This is a recipe for Armageddon. Bernanke is absolutely insane. No wonder Geithner has been hopping all over Europe begging and cajoling leaders to put together a massive bailout of troubled banks. His worst nightmare is Eurozone bank defaults leading to the collapse of the large U.S. banks who have been happily selling default insurance on European banks since the crisis began.
Originally posted by JiggyPotamus
This is basically going to be another bailout situation, cleverly disguised for the masses as being for their own good. Derivatives played a direct role in the destruction of America, like a financial atomic bomb. When this is all said and done, and everyone realizes what has happened, they will want blood...But the bankers and politicians will all be long gone, and safely underground.
Originally posted by Pervius
Starting in 2005 Banks started giving mortgages to illegal immigrants.
Around 2008 HUD released a report saying 5 million illegals walked away from their mortgages.
The true number now is around 24 million illegals have walked away from their mortgages. They bought and sold homes between themselves and fled America with mega-Trillions.
Average mortgage $350,000....times 24 million illegals....you do the math.
There's a reason South of the Border is booming and America's going down the hole. We been robbed.
Banks are still giving mortgages to illegal immigrants. Since none of those people had SS numbers or ID's...the Banks can't track the people to get their money back.
I assume you are talking about wealthy Middle-Eastern professionals, right?
I worked among the Mexican and Central American immigrant population from 2001 to late 2008, as a social worker, and then as a supervisor. Those people rented, or lived in the urban core's most dangerous and run-down areas. Working miminum wage jobs and taking in roommates to help ends meet.
And they worked HARD, for the most part. Harder than their US Citizen colleagues would even DREAM of workng. Sure, there were a few who were unsavory, but in any group of people there will be, and the slackers and criminals were NOT living in mansions. Mostly they were homeless sofa-hoppers.
On what planet??
In the areas where those people lived, the prices are more like $35,000. Yes, 10% of your "average."
Just sayin'....don't blame the wrong people. And they DID pay taxes, as long as they were on payrolls, the taxes were taken out of their checks, just like me, and they submitted returns, just like me.
Yes, they scrimped so they could send USD back home to their starving, wretched families. In that manner, lots of money crossed the border. But it was NOT in the stock market or mortgage defaults.
Reuters: Rich Illegal Immigrants Hide in the US
Many illegal immigrants in the United States are manual laborers on low wages. But there's another group that attracts much less attention: entrepreneurs who have set up businesses, created jobs and grown affluent.
There are up to 20,000 illegal immigrants earning upward of $100,000 a year as entrepreneurs, and their existence challenges the stereotype that illegal immigrants are a drain on the U.S. economy, according to immigration lawyers and academics.
Many say they are living the "American Dream," but almost none trumpet their achievements because they fear deportation.
One example is a 38-year-old computer engineer who overstayed his visa after arriving from Colombia in 1999. Not long after, he founded a Web design firm in Miami that specializes in e-commerce.
Today it's a fast-growing, tax-paying company that recently developed a Web platform for online radio and television that could be a breakthrough technology.
"We are at a good point now, making money," said the man, who spoke on condition of anonymity because of his immigration status. "We are growing every month because our customers are happy. They are U.S. companies making a lot of money from our Web sites."
But the man is near the end of a long administrative process that will likely lead to his deportation. Then his company would close and workers, including Americans, would be laid off.
"I have always tried to look at things in a positive way but now I am disappointed," he said in a telephone interview.
Michael Bander, a Miami immigration lawyer who has represented the man for six years, said his client's dilemma showed a larger flaw in the immigration system.
Originally posted by jhn7537
Ummm I'm a little confused by this article, can someone please put this into layman's terms for me? This sounds like a big story and I want to understand it, I just cant grasp it on my own.... Thanks!
Originally posted by proximo
Yes this is correct, and this is why if one of the major banks goes down they all go down, and well the entire economy - because these same banks derivatives are promised to each other. Of course they cannot cover these insane amounts of money if they go under, it's a domino effect. It's these banks version of mutually assured destruction. They literally are threatening to annihilate the worlds economy if they are allowed to fail.
What is clear to me is this was done on purpose to effectively give them the power to get away with anything as long as the derivatives are honored. They made the numbers so large that it meant instant extreme hyperinflation for any government that would try to handle their insolvency.
AIG was bailed out for one reason - they had to be or their derivative exposure would destroy everything. The reason those AIG executives were living high on the bailout money is they knew they were untouchable as long as the same system was going to continue.
What needs to happen is all the major banks need to be seized by the government and these derivative contracts they promise to each other need to be destroyed.
People that don't blame wall street for our problems are simply grossly IGNORANT of what they have and are continuing to do. Their actions are blatantly criminal to anyone with common sense.
If you can't spend your money on a house, because you can't get approved to buy one due to your status, you buy a car for cash or no questions asked.
Once you have the car, you start building credit on other things, and the illegal part dissapears when your phony ID matches your credit report.
Just because they are illegal, doesn't mean they are broke. It seems your views of the world are jaded, and you don't understand the problem's scope.