U.S. Taxpayers to Pay Off $154 Trillion Bank Debt by Auctioning Bankers
Fed workers seen here trying to put out the retardant flames of BofA, which keeps self-combusting.
By Cy Guevara
PLANET EARTH — This week, Bank of America (BofA) casually moved $75 trillion in derivatives from its “investment banking unit to its depository arm” with the help of the Federal Reserve Board.
JP Morgan is about to follow suit, moving $79 trillion from its “unit” to its “arm.” This shift means that the FDIC, and by extension American taxpayers, will be responsible for insuring $154 trillion in international derivatives, at a time when the Eurozone is in free-fall.
According to DailyBail.com, which tracks generous bailouts: “This means that the investment bank’s European derivatives exposure is now backstopped by U.S. taxpayers… This is a direct transfer of risk to the taxpayer done by the banks without approval by regulators and without public input.” In fact, these banks have been “happily selling default insurance on European banks since the crisis began,” though a collapse of European banks would likely signal a “collapse of the large U.S. banks.”
U.S. taxpayers were understandably dismayed, as the last generous bailouts they paid for in 2008 and again in 2009 did little for U.S. taxpayers themselves; most were reimbursed with massive loss of pensions, followed by a continuing loss of jobs, credit, homes, and hope. But the Fed was worried about the “heavy pressure” on BofA, which saw a 71% drop in trading revenue this month and was subpoenaed by the Attorney General of California to see if they had “sold investments backed by risky mortgages to investors in California under false pretenses.”
Early this morning, Americans began looking through their wallets and mattresses, trying to come up with the cash. However, since the entire GDP of the U.S. totaled less than $15 trillion last year, most acknowledged that it would be difficult to come up with the remaining $139 trillion. Many began hawking their food stamps, and some even offered to move to China so they could work off the debt.
Unfortunately, the profits of labor can only go so far. To come up with the money to cover ‘derivatives,’ which are based not on producing goods or services but on the ‘speculation’ of goods and services, requires an unlimited funnel of money based on the imagined scenarios of those with a vested interest in scenario development.
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Posted by CGuevara
on Dec 29 2011. Filed under Administration.
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DailyBail article here:
http://dailybail.com/home/holy-bailout-federal-reserve-now-backstopping-75-trillion-of.html