The Coming Derivatives Panic That Will Destroy Global Financial Markets
December 4th, 2012
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It would have been really nice if we had not allowed these banks to get so large and if we had not allowed them to make trillions of dollars of reckless bets. But we stood aside and let it happen. Now these banks are so important to our economic system that their destruction would also destroy the U.S. economy. It is kind of like when cancer becomes so advanced that killing the cancer would also kill the patient. That is essentially the situation that we are facing with these banks.
It would be hard to overstate the recklessness of these banks. The numbers that you are about to see are absolutely jaw-dropping. According to the Comptroller of the Currency, four of the largest U.S. banks are walking a tightrope of risk,
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The bottom line is that Big Gooferment likes Big Anything.
More crony faux capitalism. Get money by playing the game; NOT satisfying customers.
Simple solution. Artificially constrain the size by limiting balance sheets. Require excess to be spun back to the owners.
Ever hear of “anti-trust” or “restraint of trade”?
Not going to happen, because they are all in bed with one another.