Support the Blog — Buy This Book!
For Kindle and with free ePub version. Only $9.49 Great reading.
Here is what Gary Shapiro CEO of the Consumer Electronics Association (CEA) said: Dvorak's writing sings with insight and clarity. Whether or not you agree with John's views, he will get you thinking and is never boring. These essays are worth the read!
Put this ad on your blog!
Syndicate
Subscribe to Main Blog feed here:
Subscribe to Comments too (below):
Junk Email Filter
Spot on! It is that simple.
The easiest way to stand against this: move your money. Don’t use big crooked national banks. Use a small local bank, or better a credit union.
Doesn’t solve the problem, but why be a party to this fraud?
http://moveyourmoneyproject.org/
I’m in the process right now, and after hearing this am hoping to expedite the long cumbersome process. If Congress won’t separate investment banks from depository banks, Americans need to do it themselves.
Absolutely, did this years ago. But, do it while you still can.
Better yet, take your money and pay off your mortgage and all debt if you can, leave very little in banks of any kind. If there is anything left put it in real assets.
I moved back in the 90s when the banks started to tell me I could only access my accounts twice a month for withdrawals.
I moved to a credit union and never went back.
Cursor_
Already done.
I am now dealing with properly regulated banks in two countries.
But if, strike that, when the derivative bet goes south, who do we owe that money to?
Who is supposed to get the 75 (BoA) and the 79 (JPMC) trillion dollars?
I suspect that those people are going to take it in the shorts (no stock broker pun intended.)
Derivatives trades will be outlawed and the traders will get prison terms.
May I suggest that the bankers get a basic calculus book and learn that derivatives are very bad idea on which to make book because when things go south, they go real south real fast.
I closed my BofA accounts and credit cards over a year ago. Already one of the replacement credit cards I got has been sold to US Bank which is just as bad as BofA . You can’t win they keep sucking you in.
Would be nice to get Andrew Horowitz’s take on this. It almost seems to bad to be real.
Wait a GD minute!
You mean the Fed is causing problems?
I’ve been told numerous times that I didn’t know what I was talking about! That the Fed are the good guys and that we shouldn’t bother them! That Ron Paul was a kook for going after them! That the Fed is why the country hasn’t sunk into depression yet! That the Fed takes its orders from the government!
You mean I was right all along?
LibertyLover, your right on every point. The worrisome statement you made, “That the Fed is why the country hasn’t sunk into depression yet!” . The operative word is “yet”. When the Fed decides to bust the U.S. it’ll happen.
Poor Ron has been overlooked in the MSM even when his pol numbers put Ron in at least one of the top three in the current GOP circus. The media has been handed an ignore Ron Paul memo because he’s the only GOP’er critical of the private bank (The Fed) run by private banksters. Also Ron Paul hasn’t flip flopped or choked on stage but still they pay the man no mind. Disgusting.
Most healthy governance frameworks world wide has a firewall between commercial and investment banking. Not the US.
Glass-Steagal used to have that separation. What BofA is doing is perfectly legal because congress let’s them. You’ve created a system where the benefits are private but the risks are public. Fix that problem and the Fed won’t be on the hook anymore.
Another “Doomsday Machine”.
Those banks have built a house of cards that can too easily crash.
It matters not that my money is in my credit union or under the mattress, we all go down when the house comes down.
There aught to be a law!
Yup. You’re absolutely right.
When the house of cards comes crashing down, having a fiat based currency becomes meaningless. Might as well use that paper to wipe your butt with.
The banksters will have a day of reckoning and we, the people, the ones who’s future they are trying to steal, will make them walk the fucking plank.
You shouldn’t make book if you cannot cover bets.
Especially with money belonging to the bourgeoisie. We can forgive many things, but never that.
We revolt, execute commoners and kings and bring down empires whenever its tried.
Does this mean the banks are more powerful than the gubmint? Why, I believe it does. Still asking why they got bailed out, and we didn’t?
Look who’s standing behind him at 2:00 when he says “guess who’s left holding the bag”. Its none other than Gerald Celente, who got left holding the bag with MF Global when they went bust this week.
Good eyes Kent. MF Global appears to be the first fatality stemming from Europes problems.
Some Cookie Monster mashup below.
http://onegoodmove.org/1gm/1gmarchive/2011/11/gods_away_on_bu.html
This nation can’t insure than kind of money. Hang Bernanke!
You are wrong about what the people think about how these clowns are acting. For one thing they are at the wrong location messing with the wrong people.
Now if they wanted to stage a sleep in around the Fed…But as long as they keep crapping on the little guys and messing up their own towns…NO!
The Fed is evil because the US Congress made it evil. Back in the late 90’s you a had Speaker and President who were up to their asses in personal, ethical and legal shit. Meanwhile everyone was in dewey eyed love with Greenspan. “Wow, this old Jewish guy from New York and his friends are really fucking smart. He must be John Fucking Galt he’s so smart. We better give and all his banking buddies from New York everything they want or they’ll hoof it to Galt’s Gulch and we’ll all be screwed.”
And so while everyone was fixated on stained dresses and cigars Congress abdicated their constitutional responsibility. The stopped doing their bloody job and gave the responsibility of oversight of the US banking system to the Fed and Wall Street. This is Congress’ job to fix it. Gingrich, Hastert, Pelosi and Boehner have their fingers all over this mess. You need a Speaker with some NY sized kahonies.
I’ve been thinking for sometime that Greenspan is Galt. What did Galt do? He brought it all down. Greenspan pretty much did the same thing.
If you look at Greenspan’s earlier stances, he was a staunch libertarian who didn’t believe in fiat currency. But he ended up in charge of the largest fiat currency printing engine in history. And look what he did with it.
So basically this is a case of heroic incompetence?
No, I think he did it on purpose.
Where the hell does 75 trillion come from.
Come ON!!!!!
Don’t take this without critical thinking!!!!
That’s the beauty of derivatives. It is just an electronic market for bets, pure and simple. You don’t need assets to make a bet… statistics show it works out fine unless something improbable happens. So there can be 75 trillion in bets placed, most offsetting most of the time, w/o capital backing them up. The only time you need capital is if something goes wrong, but that isn’t a problem for the gamblers, it is a problem for the house. The problem is, with too big to fail the taxpayers are the house. $75T is the ‘handle’…
75 Trillion in investments when the company only has 2.2 Trillion in assets. Doesn’t sound right to me. Can anybody verify those statistics?
Regardless the big banks without question do not exist to help the small investor. Any small bank that competes is swallowed up whole. Ironically moving your money from the big bank actually helps them. Not having to cover your deposits allows them to take on investments from Europe.
Bilking me for $10 a month and using my FDIC insurance to cover their bets helps them too.
Moving my money doesn’t stop their shenanigans, I’m too small potatoes. Most of us are. But we don’t have to be party to or enable their BS either.
Sounds about right if you leverage those assets at about 32:1… Which has been done already.
I am not financial guru, and don’t understand much of what this guy had said. But I looked it up a bit b/c something just felt fishy about this guy’s arguments. Statement like: “BoA has $75 trillion of derivative expense…. that’s a quarter of money of the entire world combined”. So how was BoA able to afford such “absurd”, as he described it, amount of expense on their own all this time? I think the guy used lots fuzzy logic that sounds good on the surface b/c it’s partially based on facts. I found an article from someone who tried to clarify what this $75 trillion business really meant. I still don’t fully understand it, but at least the person does sound like he is trying to stick to the truth rather than create a sensational headline.
http://crooksandliars.com/karoli/truth-about-bank-americas-derivatives-trans
tigerjuju, To make it simple for me can I make the example that BoA has 75T in lets’s say mortages?
The article you posted says BoA has $66.6bn in assets, not owed monies. This is confusing but is the 66.6bn liquid, and the 75T is the return on their gamble of being paid from either interest or CDOs including other financial acronyms created to gamble in the global markets?
All this financial jargon seems to be overly complicated just to keep people in the dark about how money in the new markets work.
In a nutshell:
Commercial banking is people do to live. Savings, credit cards, mortgages, payroll, business loans, etc.
Investment banking is what people do to make money. Securities, trading, options, etc.
Only idiots let idiots mix the two together.
Let the big banks fail – taxpayers are on the hook for the money insured by the FDIC, and we shouldn’t pay a penny more than that.
If BOA (and others) had been allowed to fail, those remaining would be a bit more careful about where they put their money. Some might call it learning by experience.
I’m not sure when all of this crap started (too big to fail) but during the bust of the mid ’80’s in OK, TX, KS, LA and etc., banks were closed by the dozen, but Continental Illinois bank (for example) was “too big to fail” even after (it was reported) purchasing bad loans from some of those banks that were closed. Wrong, wrong, wrong – look where that got us.
Does anyone, besides Ron Paul and Ben Bernanke understand the Federal Reserve System? Many still don’t know that it’s isn’t a federal government entity and that Ben can’t be fired.
Anyway, the poor misguided children trying to camp out to shut down Wall Street (not that it doesn’t deserve it) should learn where the real problem lies. Maybe they can take up a collection and hire their own lobbyist to compete with GE’s, drug companies’s and etc’s. lobbyists for their congressman’s attention. Joke
It’s done folks – stick a fork in it.
This is real, why would any of you think otherwise. For one thing, most if not all of you are late to The Young Turks show. They are great and kinda funny. I love it when they use Jon Stewart to crack jokes along with.
boycott bofa if you can. I’ve said it for years in this forum. I wouldn’t deal with US Bank that’s come over to the west coast either. For their scandal out east on selling customer info it’s despicable.