5 U.S. Banks Each Have More Than 40 Trillion Dollars In Exposure To Derivatives

a reply to: xuenchen

Heck yeah, made sure that you invest as much as you can,

, retirement accounts will be backed by carbon tax credits in another year if the global warming profiteers get away with it.

The when the next ice age comes back they can blame the next market fallout on "earths farts".

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..

a reply to: rickymouse

No, no, we will be selling carbon credits to China, one of the biggest polluters in world, see they will buy them because they will want them.

a reply to: rickymouse

I was gobsmacked at the cost of this new offensive the wesgt is having to make and my first thought was the bankers must be laughing their socks off as they usually supply both sides.

I do think howev er that there will be such a backlash against the current banking system that it will be collapsed by people springing onto bit coin to whatever feasible choice they have in order to leave the current banking system.

Banks are quite aloof to the high street because its only their staff who live locally and are so far down their voracious food chain that will face the public. They all sit in ovory towers and we must put their faces and personal details onto a board so everyone can see who they arfe and where they are so if they jeopardise the public's savings and money, they can this time be arrested and these monstrous banks assets taken.

One other thing though surely its the problem of who the money is owed to to worry - why should we who haven't benefitted from all this borrowing? Its who has pocketed it and who loaned it - we need to stay on the sidelines and simply think up good arrangements for paying for the sergvices we all need.

And the Ponzi Scheme continues a few rounds more and when it is over the future generations of US will have to enslave themselves to pay back or give up resources/land.

www.usdebtclock.org...

But do not worry the owners of the banks will have disappeared with the money (transformed into assets that are worth something outside the US).

US is being setup to become a third world country.

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..

I can see that we are on the same wavelength Ricky. It's too bad you live way up in the U.P., we have a lot in common. Maybe I'll bug out up there eventually, if I can get across without using the Big Mac, I imagine that will be locked down pretty tight when the SHTF.

I'm surprised no one mentioned Obamas pick for chief of Staff Jack Lew?

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

So the US federal government is clearly responsible to the banks rather than democratic opinion.
We the people lost our votes when we took mortgages in an overinflated housing market.

Most of the current highly leveraged "bets" appear be bets over future interest rates.
Goldman Sachs has been devaluing gold in the strong dollar global environment.

US Fed funds rate hasn't budged since 2009 still at .250 %.
Eurozone dropped their rate to .150 june 05 2014.
Most recent drop was september 04 2014 0.050%.

I feel like a passenger in a go fast boat, there is this red nitrous oxide button on the gauge panel.
Janet is planeing on using that sometime?

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.

No, they're bailing out the LAST crash . . . .

All of it is fake money, it's not worth anything if no one will work for it's value.

Put them all in jail, erase those derivatives or fall for their totalitarian plan of enslavement.

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.

It's not really super powerful. The more leveraged a bank is the more fragile it is. If the number 1/54 is right that means they're leveraged 54:1. When the collapse of 2008 happened they were in the 25:1 range with the biggest offenders being an unheard of 35:1.

Fractional reserve banking can work but the leverage limits need to be lower, 10:1 is usually pretty happy and allows for plenty of loan activity (the history behind the idea of getting a loan with 10% down... you put down the 10% they leverage that at 10:1 for the total value).

Honestly, when the derivative bubble bursts all of the worlds currencies are done for. We're going to have to completely wipe the slate of savings and debt and start issuing new currency from square 1. I honestly believe that such a thing is how my generation is going to have the student loan problem solved... our debt will just be wiped out. What really worries me though is what's going to happen to the baby boomers, their retirement plans and life savings will also be wiped out.

Houses worry me too, if we have another 2008 situation where the banks simply start foreclosing on homes, I honestly believe the responsible thing to do at that point will be to either burn the home down or bulldoze it before the banks can take it back.

The derivatives market is probably one of the biggest threats to a healthy economy.

Yet, we rarely hear much about it. All one needs to do is look at the numbers to realize something isn't quite right. I'm really at a loss at to solutions as well. The only option I can think of, for this specific problem, is a cessation of participation of the general public. just as important would then be participating in a new economy that has a currency directly tied to a real world value.

Thanks for the post on it xuen!

a reply to: Aazadan

With respect, it actually is pretty powerful until a tiny event blows it all up. What I was reading was that most of these derivatives basically amount to "profit insurance", where a company can ensure it always makes a certain amount of money. That's very nice. Can you imagine starting a small business, and arranging things so it always makes several thousand a month no matter what? Think of the doors that opens in your planning.

But here's the evil genius of all it all: When the derivative bubble bursts (the death star explodes) and threatens to drag the global economy with it, any leaders who don't want do be blamed for crashing the economy into a new dark age must bail them out, to the annoyance of the people. They have basically arranged a situation where their profits are insured by the federal government! And they also hold what amounts to a political WMD, if something the feds did can be seen as causing the death star to explode, its the end for the current administration. Did you see the NYT article the OP's article linked to? Regulators are working "in the margins". Regulators came to them and asked "where can we regulate?" And Wall St. said "in the margins" and that's where they are working. Good God!

Anyway, the upshot is, things are unstable but the PTB are more in control of the big picture than you may think. I wouldn't expect a collapse that isn't in some way controlled.

a reply to: Serdgiam

There is no solution, everyone who knows about the situation knows that it is a time bomb with no answer. To put it succinctly the mere act of trying to introduce a regulation to prevent collapse will trigger the collapse as people pull their money out in anticipation of changes. If less than 2% of people pull their money out at the same time the entire world economy collapses, and that number is shrinking by the day. In 2008 it was 4% of people, a couple years ago it was 3% of people, now it's less than 2%

But atleast we can take solace in knowing we are financially responsible for what the banks do now which means the bankers won't survive the next one.

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.

a reply to: xuenchen

Ask yourself dear readers how on earth can this be possible it is more than the entire amount of money in circulation around the world. How can this be possible unless................Maybe this is a setup. Maybe they tried many different ways to get the slaves to follow quietly and that did not work as planned.



Truth be told anyone making under 15 dollars an hour is going to screwed in the next couple of years due to out of control inflation. They will not be able to afford food and housing the government will keep scaling back welfare benefits.

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.

6.12 trillion in QE and counting. And what do the banks do with that money? They haven't used it to have a lower leverage rate, instead they've used it to increase their exposure.

That's not even getting into the unlimited 0.001% interest loans they can take.

a reply to: Aazadan

There would only be a collapse if there is not another economic system to replace it. Granted, the vast majority of the population doesn't think like that, so it isn't likely. The likely scenario is the blind dismantling of all governing systems with no regard to consequences or replacement systems.

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.

If/when it leads to collapse, those that participate or design alternative systems pre-emptively will likely thrive. But, the majority is likely to create another system based on all of the same paradigms. At least, that is what has happened in every other similar situation in human history, including revolutions.

What we need are some white ninjas to wipe out the Bankers in high places.......WHERES BEN FULFORD HE COULD GET IT DONE.....

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.

The problem isn't that we can't create solutions, the problem is in implementing them. Investors are notoriously skittish just look at how middle east flareups effect the price of oil. Regulations make people nervous, which means they temporarily pull their money out until they can get a sense of the new financial landscape. It doesn't matter what the change is, any change that causes more than 1/54 (and before long 1/55, then 1/56) of the investors to pull their money out for a time will result in collapse. That is the issue.

We can't even freeze assets for a time and then implement changes and force people to see how they play out because the very news of freezing assets to do this would cause a collapse. It's a very messed up situation and it's all because we didn't let it come tumbling down when it needed to.

There's plenty of post collapse solutions btw, for example we can take everyones now worthless currency, inflate our way out of the debt, then create an asset fund to back a new world currency, backed by immense amounts of the old currency and preferably some commodities as well. You can individualize that plans to nations too. There's lots of ways to go about it, the problem comes from the fact that all savings and debt will be wiped out in the process.

am I the only one thinking the collapse would be more like what happened when the USSR collapsed (as some others have mentioned), and less like what preppers are thinking(total anarchy).

systems will be dismantled, "austerity" measures that primarily impact the poor and unemployed, as a result of this living standards, and education standards sharply decline.

I for one would be seeking to secure a place in the provisional government(s), and thinking of ways to provide relief on a community level when the dollar collapses.

Sitting in a bunker waiting for someone else to stabilize the situation will leave you out of the table when power re-consolidates.