very nice
boehner and co. are crying about this no doubt all the way to the bank
why bother to vote at all
Who is John Galt??
If I hand the feds $1M, will they leave me alone?
At this point, why not. It’s not like it matters. This thing (America) doesn’t last past 2020.
Title should be ‘opens the door to underpinning up to 300 trillion in derivatives’, looks like a title written to be more explosive than reality.
That being said, you can be sure this will cause the US Government to loose over a trillion dollars.
What should have been done, is the banks need broken up. They need to be deregulated but we can never allow banks that are too big to fail again. We need this kind of leader that will take on this task.
This is should not be allowed.
If the text highlighted is representative of what they actually did, I think it is good. It permits them to execute a derivatives/ swaps to offset risks already on their books. It is my understanding that the credit risk derivatives, where big banks and insurance companies essentially took the credit risk off the originating lender’s books and put it on their own (for a fee), were the main problem in the big bank/ insurance company failures/ bailouts. In the end, they took more credit risk than they could cover, and of course should have been allowed to fail and not be bailed out. That doesn’t appear to be what this legislation is addressing or permitting again.
Derivatives and swaps for the purpose of reducing risk exposure ALREADY ON A BANK’S BOOKS from ordinary deposit and lending transactions is a good thing for both the bank AND taxpayer . . . IMHO. As posted here, I am perfectly fine with it. But it has to be done correctly. In my regulator days, I saw a case where a bank claimed to be hedging, whereas they were actually “doubling up to catch up”, and that is VERY, VERY bad.
In other words, bend over taxpayers.
Perhaps Uncle Sugar will be kind enough to give us a voucher for lube in bulk from Sam’s or Costco? Because one day we are all going to need it.
It looks like that the banks that trade the derivatives are off the hook making a disagreement between the originator and the buyer fall back on the originator rather than the middleman, “the bank”.
It just makes the task of the plaintiff’s lawyers taks harder because he can’t go after the deep pocketed middleman to collect his fee
Ohio - of interest ping
I’ve read elsewhere that the total amount of derivatives out there is anywhere between $600 trillion to $1 quadrillion.
Good to know we are on the hook for only $300 trillion of it!
So what?
The Bears are worth $1.7 billion and the Saints are worth $1.11 billion.
If I place a $10 bet on Monday's game, the notional value is $2.81 billion but all I can lose, or win, is $10.
Should I worry?
“$300 trillion notional backed by about 350 million Americans is just under $1 million for every man, woman and child in the country.”
No problem, after hyperinflation kicks in that will be about 1 hours paycheck for those still employed.
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Don’t forget. April 15th is tax day. Now get back to work chumps.