Congress to Make Taxpayers Bail Out Bank Gambles

The new budget includes provisions to force Americans to underwrite bank gambles in the derivatives market. Michael Snyder writes at the Economic Collapse blog: “New Law Would Make Taxpayers Potentially Liable For TRILLIONS In Derivatives Losses.” If the quadrillion dollar derivatives bubble implodes, who should be stuck with the bill?  Well, if the “too big to fail” banks have their way it will be you and I.  Right now, lobbyists for the big Wall Street banks are pushing really Read more […]

Is the Financial System Now More Unstable Than in 2007?

We “solved” a debt-crisis by taking on additional debt. Why, with economic brilliance like that, what could possibly go wrong?!? I mean, when we don’t make enough to cover the mortgage and credit card payments don’t all of us rush out and add three more loans to the mix? If you don’t understand the wisdom in that, you must not be a high-powered, overpaid banker or economist!! There’s also this little problem of financial derivatives—some estimates put the notional amount at $1.4-quadrillion Read more […]

A Snapshot of the Gamblers Using Us as Collateral

The bankruptcy of the Central Bank created system in one snapshot. The top four banks in this chart are all zombies—dead men banking, feeding off the living—but Goldman Sachs takes the prize for having nearly $50-trillion in market bets on the table based on little more than $100-billion in assets (0.2%, if you’re keeping score). Wouldn’t you like to have that much leverage at the betting tables in Vegas, knowing that if you win, you win massively, and if you lose… well… all of Read more […]