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View Full Version : HOLY BAILOUT !!!!!!!!



Qtec
11-15-2011, 04:59 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">HOLY BAILOUT - Federal Reserve Now Backstopping $75 Trillion Of Bank Of America's Derivatives Trades

This story from Bloomberg just hit the wires this morning. Bank of America is shifting derivatives in its Merrill investment banking unit to its depository arm, which has access to the Fed discount window and is protected by the FDIC.

<u>This means that the investment bank's European derivatives exposure is now backstopped by U.S. taxpayers.</u> Bank of America didn't get regulatory approval to do this, they just did it at the request of frightened counterparties. Now the Fed and the FDIC are fighting as to whether this was sound. The Fed wants to "give relief" to the bank holding company, which is under heavy pressure.

<span style='font-size: 14pt'>This is a <u>direct transfer of risk to the taxpayer</u> done by the bank without approval by regulators and without public input. You will also read below that JP Morgan is apparently doing the same thing with <span style="color: #990000">$79 trillion of notional derivatives guaranteed by the FDIC and Federal Reserve.</span></span>

What this means for you is that when Europe finally implodes and banks fail, U.S. taxpayers will hold the bag for trillions in CDS insurance contracts sold by Bank of America and JP Morgan. <u> Even worse, 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.</u>

<span style='font-size: 14pt'>This is a recipe for Armageddon.</span> 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. <span style='font-size: 14pt'>His worst nightmare is Eurozone bank defaults leading to the collapse of the large U.S. banks <u>who have been happily selling default insurance on European banks since the crisis began. </u></span></div></div>

link (http://dailybail.com/home/holy-bailout-federal-reserve-now-backstopping-75-trillion-of.html)

or watch the video (http://owsnews.org/real-news-network-interviews-bill-black/)

Remember, this is just ONE bank. Are the others doing the same?

Q... Occupy Wall Street Our One Demand (http://www.youtube.com/watch?feature=player_embedded&v=qI_P3pxze5w)

cushioncrawler
11-15-2011, 05:44 AM
Krappynomix 101.
Banx and finance and investiment industrys are industrys that kontribute nothing to the usofa cake -- they are just parasites.

Krappynomix 102.
Banx and finance and investment industrys are industrys that kan ruin the usofa -- they kan melt the cake away.

Go figure.
mac.

Qtec
11-15-2011, 06:13 AM
You might like this.

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> This is excellent. With Max Keiser and directed by Stacy Herbert.

It happens all over the world, but it's been a long, long time since a European country has had the experience. Default. National bankruptcy. Here's what happens when a country goes broke.</div></div>

Greece (http://dailybail.com/home/max-keiser-short-film-on-greece-heres-what-happens-when-your.html)

Q

Gayle in MD
11-15-2011, 07:55 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body">You might like this.

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> This is excellent. With Max Keiser and directed by Stacy Herbert.

It happens all over the world, but it's been a long, long time since a European country has had the experience. Default. National bankruptcy. Here's what happens when a country goes broke.</div></div>

Greece (http://dailybail.com/home/max-keiser-short-film-on-greece-heres-what-happens-when-your.html)

Q </div></div>

Thanks Q.

G.

eg8r
11-15-2011, 09:59 AM
I am sure Obama will save us after allowing this to happen.

eg8r

LWW
11-15-2011, 10:28 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: eg8r</div><div class="ubbcode-body">I am sure Obama will save us after allowing this to happen.

eg8r </div></div>

It's Bush's fault that BoA gave all that campaign money to Obama to buy a bailout.

Soflasnapper
11-15-2011, 11:43 AM
Not to worry. Not all of this can blow up. Probably just 5 to 10% of the value.

So when it goes down, maybe 'only' $3.75 trillion, or $7.5 trillion in losses to the people. Don't be so hysterical! /forums/images/%%GRAEMLIN_URL%%/crazy.gif

Soflasnapper
11-15-2011, 11:49 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: LWW</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: eg8r</div><div class="ubbcode-body">I am sure Obama will save us after allowing this to happen.

eg8r </div></div>

It's Bush's fault that BoA gave all that campaign money to Obama to buy a bailout. </div></div>

That's possibly true!

Here you go. (http://www.opensecrets.org/orgs/totals.php?id=d000000090&cycle=2012)

As can be seen here, BOA almost always gives more to the GOP than to the Democrats. It's true that in the '08 cycle, they did give about $400,000 more to the Dems, surely not all of whom were named Obama.

Holy crap, why would BOA do THAT? Uh, because they can read polling as well as anyone, and realized that the Dems were riding in on a big wave topping up their majorities. And why were the Democrats in such a position?

LWW nails it. W was, yes, that big of a spectacular failure, that the handwriting was on the wall for all to see.