Remember when our congress signed us up for $303 trillion in derivatives?

I forgot to mention in my previous column on the Citi-drafted [Cr]Omnibus bill the estimated amount for which Americans may be on the hook this time around when the big banks’ gambling goes awry. These guys sure “know when to walk away and know when to run” to Congress for a corporate-socialism bailout at our expense!

According to the websites of Daily Kos and Zerohedge, the amount aforementioned is right around $303 trillion! Think of all the education and infrastructure that money could buy that will instead go to pay off the bad bets of bankers like the very tiny Jamie Dimon of JP Morgan and the orangutan-doppelgänger Lloyd Blankfein of Goldman Sachs. I usually stay away from ad hominem attacks, but these guys are total pariahs.

I guess they deserve our help, though. After all, as Blankfein once said: They are “doing God’s work.” I wonder which god’s work is to make bad bets with taxpayers’ (or for the potential future bail-ins, depositors’) money. Either way, the American public does not seem to even notice, so these guys think that we are just fine with the imminent fleecing. I guess we are, or we would be hearing a lot more about it and maybe even seeing people taking their money out of these banks . . . or refusing to make any more payments to these criminal organizations.

As Zerohedge puts it: “At least we now know with certainty that to a clear majority in Congress – one consisting of republicans and democrats – the future viability of Wall Street is far more important than the well-being of their constituents. Which also, implicitly, was made clear when Hank Paulson was waving a three-page ‘blank check’ term sheet, and when Congress voted through the biggest bailout of banks in US history back in 2008.

“The only question is when the next multi-trillion (or perhaps quadrillion now that all global central banks are all in?) bailout takes place.”

Why worry about this? Here’s a bit of what Forbes has to say about the situation: “Another global financial crisis is on the way. Financial reform didn’t work. Banks today are bigger and more opaque than ever, and they continue to trade in derivatives in many of the same ways they did before the crash, but on a larger scale and with precisely the same unknown risks.”

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s