Date:   11/13/2011 6:39:14 PM ( 13 y ago)
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URL:   https://www.curezone.org/forums/fm.asp?i=1880970

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Yep, that's what your good friends at Bank of America AND the Federal reserve are trying to set up so that, once again, the American sheeple will be sheared. Bank of America is trying to transfer utter garbage derivatives that have a notional value of (at least) many billions -- maybe TRILLIONS of dollars onto the books of a "deposit-taking unit." WHY? Because that unit would be FDIC insured; so that when the derivatives "blow up" -- as they surely will, the Federal Deposit Insurance Corporation that (surprise!) is essentially outta money, will be stuck with the bill. In that case, WHOM do you think will ULTIMATELY be stuck with the bill? Good ol' you and me, the m*o*o*n taxpayer. // Now whom do you suppose is pushing for this transfer??? Another surprise!!! Why it's Benji Bernanke, the big-bank pimp, and, in general, the Obama administration. Strangely, the FDIC is not overjoyed at this prospect . . . but you can bet they'll be overruled by our mostly bought-and-paid-for legislature. // Background: According to Bloomberg, derivative contracts with a notional value of $53 TRILLION dollars are held by Bank of America North America (NA). This amount is roughly equal to 80% of the GDP OF THE ENTIRE WORLD. No one knows what percentage of the $53 trillion are complete and utter garbage . . . vs. the others which, one may presume on the basis of events over the past 3 years are mostly just plain vanilla garbage. (Bank of America claims that the "trades" will not be FDIC insured -- whatever that's supposed to mean. You can be sure, however, that, in the end, the taxpayer will be left holding the bag. // See, the idea is to set this situation up in advance, because any legislator who publicly asked for ANOTHER bank bailout could expect . . . well, it wouldn't be pretty!

Here's ANOTHER news flash! Goldmine Sachs (and at least one other of the too-big-to-fail banks) is planning to change their accounting procedures so that even MORE of their holdings will be valued according to their face (notional) value, instead being valued at what they could actually be sold for on the market (using the GAAP approved "mark-to-market" method.") In other words, they will be valued according to the "make-believe model" GS concocts as to what they were worth when GS constructed them. // In many cases, no doubt, the actual true current -- and likely future -- MARKET value of many, maybe most of the entities that will be RE-valued will be near or at $ ZERO! Goldmine says this is to prevent unnecessary volatility. "The bottom line is this: Investors do not really have a clear idea of how healthy any of these banks truly are. We do not know the state of their balance sheets. We do not know what their exposures are to mortgages, to Europe, to Greece, etc. They could all be technically insolvent, as far as any investor can tell."
 

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