2008 Redux (1 Hundred Trillion+ Edition)

Still looking for more sources for this one but ran across it in another forum I drop in on. I don't know why the first thing I thought of when reading this was Dr. Evil and his demands but I thought you guys may like to have a glance at this one. Sorry if this is a double up, did a quick search but didn't hit anything.

2008 Redux: Taxpayers to help bailout Merrill Lynch and Bank of America

Bank of America is not the only financial institution attempting to use the taxpayers as a backstop to protect their potential losses, as according to Bloomberg, JP Morgan is also moving up to $79 Trillion in European backed derivatives to where they will be guarnteed by the FED, and the FDIC. It appears that the banks are relying on the Too Big To Fail mentality of the Teasury Department, and the legislators in Washington to have little choice but to institute a bailout of massive proportions should these derivatives be called in for Euro failures. Only this time, the cost would be 10 times the amount taxpayers spent bailing out institutions during the 2008 credit crisis. For the American people, these moves by Bank of America and JP Morgan should be severe warnings to just how bad the global credit crisis is becoming, and the potential for over $100 trillion in derivatives to be thrust on the US taxpayers. It is ironic that Merril Lynch once again is the center of controversy for too big to fail, but this time, there may not be enough dollars in circulation to save the banks should the worst case scenario come to pass.

1 Hundred trillion dollars.

More Added, Apparently the Fed approves the move by BoA, good thing they are looking out for us

Bank of America Bosses Find Friend in the Fed

The Federal Deposit Insurance Corp. is objecting to the transfers. That part is easy to understand: More risk for the retail lender means more risk for FDIC-insured deposits, which ultimately are backstopped by the U.S. government. The Fed, however, has signaled to the FDIC that it favors the transfers. Shifting the derivatives to the commercial lender may let Bank of America avoid collateral calls and termination fees stemming from the rating downgrade. Some Merrill clients may prefer having their contracts with the higher-rated unit. In short, the Fed’s priorities seem to lie with protecting the bank-holding company from losses at Merrill, even if that means greater risks for the FDIC’s insurance fund.

Redux? More like 2008 times a 100.

In 2008 it was 700 billion.

Now it's hundreds of trillions.

The top 4 banks: JPM with $78.1 trillion in exposure, Citi with $56 trillion, Bank of America with $53 trillion and Goldman with $48 trillion, account for 94.4% of total exposure.

$235 trillion in derivatives exposure. That's 4 times the world's GDP.

gambling entire economies.