Banks Push Congress to Insure TRILLIONS in Derivatives: “Americans Could Be on the Hook for Absolutely Massive Losses”

by | Dec 8, 2014 | Aftermath, Commodities | 123 comments

Do you LOVE America?



    This article was originally published by Michael Snyder at the Economic Collapse blog.

    Editor’s Note: As Michael Snyder notes, JP Morgan Chase, Goldman Sachs, Citibank, Bank of America, Morgan Stanley, and plenty of others have manipulated the market with these derivative bets, and have at least $40 trillion in derivatives exposure. If Congress passes FDIC protection for these controversial and complex financial instruments, it could dwarf existing debt held by the federal government and cost taxpayers an absolutely insurmountable sum, all while letting the bankers walk away free, and with their other winnings in hand.

    Back in 2011, the Federal Reserve quietly stepped up to the plate to back Bank of America in attempting to park more than $75 trillion in European derivatives exposure in a division covered by FDIC (Federal Deposit Insurance Corporation) loss insurance – meant for ordinary consumers to promote general confidence in the banking system!

    Bank of America is shifting derivatives in its Merrill investment banking unit to its depository arm, which has access to the Fed discount window and is protected by the FDIC.

    This means that the investment bank’s European derivatives exposure is now backstopped by U.S. taxpayers.  Bank of America didn’t get regulatory approval to do this, they just did it at the request of frightened counterparties.  Now the Fed and the FDIC are fighting as to whether this was sound.  The Fed wants to “give relief” to the bank holding company, which is under heavy pressure.

    The FDIC objected, and the deal stalled, but the gesture has been attempted on other occasions as well, and the banks are now seeking to make this a general protection for derivatives at large. This is the ultimate in letting American taxpayers hold the bag, while the real criminals speed off in the proverbial get away vehicle – all with the Federal Reserve in the driver’s seat, mind you.

    Wow! The mantra of private gains, public losses has never been more true; meanwhile, the American people are serious trouble if this passes through.

    New Law Would Make Taxpayers Potentially Liable For TRILLIONS In Derivatives Losses

    If the quadrillion dollar derivatives bubble implodes, who should be stuck with the bill?  Well, if the “too big to fail” banks have their way it will be you and I.  Right now, lobbyists for the big Wall Street banks are pushing really hard to include an extremely insidious provision in a bill that would keep the federal government funded past the upcoming December 11th deadline.  This provision would allow these big banks to trade derivatives through subsidiaries that are federally insured by the FDIC.  What this would mean is that the big banks would be able to continue their incredibly reckless derivatives trading without having to worry about the downside.  If they win on their bets, the big banks would keep all of the profits.  If they lose on their bets, the federal government would come in and bail them out using taxpayer money.  In other words, it would essentially be a “heads I win, tails you lose” proposition.

    Just imagine the following scenario.  I go to Las Vegas and I place a million dollar bet on who will win the Super Bowl this year.  If I am correct, I keep all of the winnings.  If I lose, federal law requires you to bail me out and give me the million dollars that I just lost.

    Does that sound fair?

    Of course not!  In fact, it is utter insanity.  But through their influence in Congress, this is exactly what the big Wall Street banks are attempting to pull off.  And according to the Huffington Post, there is a very good chance that this provision will be in the final bill that will soon be voted on…

    According to multiple Democratic sources, banks are pushing hard to include the controversial provision in funding legislation that would keep the government operating after Dec. 11. Top negotiators in the House are taking the derivatives provision seriously, and may include it in the final bill, the sources said.

    Sadly, most Americans don’t understand how derivatives work and so there is very little public outrage.

    But the truth is that people should be marching in the streets over this.  If this provision becomes law, the American people could potentially be on the hook for absolutely massive losses

    The bank perks are not a traditional budget item. They would allow financial institutions to trade certain financial derivatives from subsidiaries that are insured by the Federal Deposit Insurance Corp. — potentially putting taxpayers on the hook for losses caused by the risky contracts.

    This is not the first time these banks have tried to pull off such a coup.  As Michael Krieger of Liberty Blitzkrieg has detailed, bank lobbyists tried to do a similar thing last year…

    Five years after the Wall Street coup of 2008, it appears the U.S. House of Representatives is as bought and paid for as ever. We heard about the Citigroup crafted legislation currently being pushed through Congress back in May when Mother Jones reported on it. Fortunately, they included the following image in their article:

    Derivatives Bill From Liberty Blitzkrieg

    Unsurprisingly, the main backer of the bill is notorious Wall Street lackey Jim Himes (D-Conn.), a former Goldman Sachs employee who has discovered lobbyist payoffs can be just as lucrative as a career in financial services. The last time Mr. Himes made an appearance on these pages was in March 2013 in my piece: Congress Moves to DEREGULATE Wall Street.

    Fortunately, it was stopped in the Senate at that time.

    But that is the thing with bank lobbyists.  They are like Terminators – they never, ever, ever give up.

    And they now have more of a sense of urgency then ever, because we are moving into a period of time when the big banks may begin losing tremendous amounts of money on derivatives contracts.

    For example, the rapidly plunging price of oil could potentially mean gigantic losses for the big banks.  Many large shale oil producers locked in their profits for 2015 and 2016 through derivatives contracts when the price of oil was above $100 a barrel.  As I write this, the price of oil is down to $65 a barrel, and many analysts expect it to go much lower.

    So guess who is on the other end of many of those trades?

    The big banks.

    Their computer models never anticipated that the price of oil would fall by more than 40 dollars in less than six months.  A loss of 40, 50 or even 60 dollars per barrel would be catastrophic.

    No wonder they want legislation that will protect them.

    And commodity derivatives are just part of the story.  Over the past couple of decades, Wall Street has been transformed into the largest casino in the history of the world.  At this point, the amounts of money that these “too big to fail” banks are potentially on the hook for are absolutely mind blowing.

    As you read this, there are five Wall Street banks that each have more than 40 trillion dollars in exposure to derivatives.  The following numbers come from the OCC’s most recent quarterly report (see Table 2)

    JPMorgan Chase

    Total Assets: $2,520,336,000,000 (about 2.5 trillion dollars)

    Total Exposure To Derivatives: $68,326,075,000,000 (more than 68 trillion dollars)


    Total Assets: $1,909,715,000,000 (slightly more than 1.9 trillion dollars)

    Total Exposure To Derivatives: $61,753,462,000,000 (more than 61 trillion dollars)

    Goldman Sachs

    Total Assets: $860,008,000,000 (less than a trillion dollars)

    Total Exposure To Derivatives: $57,695,156,000,000 (more than 57 trillion dollars)

    Bank Of America

    Total Assets: $2,172,001,000,000 (a bit more than 2.1 trillion dollars)

    Total Exposure To Derivatives: $55,472,434,000,000 (more than 55 trillion dollars)

    Morgan Stanley

    Total Assets: $826,568,000,000 (less than a trillion dollars)

    Total Exposure To Derivatives: $44,134,518,000,000 (more than 44 trillion dollars)

    Those that follow my website regularly will note that the derivatives exposure for the top four banks has gone up significantly since I last wrote about this just a few months ago.

    Do you want to be on the hook for all of that?

    Keep in mind that the U.S. national debt is only about 18 trillion dollars at this point.

    So why in the world would we want to guarantee losses that could potentially be far greater than our entire national debt?

    Only a complete and utter fool would financially guarantee these incredibly reckless bets.

    Please contact your representatives in Congress and tell them that you do not want to be on the hook for the derivatives losses of the big Wall Street banks.

    When this derivatives bubble finally implodes and these big banks go down (and they inevitably will), we do not want them to take down the rest of us with them.

    beginning-of-the-end-snyderMichael T. Snyder is a graduate of the University of Florida law school and he worked as an attorney in the heart of Washington D.C. for a number of years.

    Today, Michael is best known for his work as the publisher of The Economic Collapse Blog and The American Dream

    If you want to know what things in America are going to look like in a few years read his new book The Beginning of the End.


    It Took 22 Years to Get to This Point

    Gold has been the right asset with which to save your funds in this millennium that began 23 years ago.

    Free Exclusive Report
    The inevitable Breakout – The two w’s

      Related Articles


      Join the conversation!

      It’s 100% free and your personal information will never be sold or shared online.


      1. We can expect the Derivatives bubble to burst shortly.

        • Other financial news…

          News from the Stock Market
          “All major equity indices are tumbling.”
          “Bond yields are collapsing.”
          “precious metals are surging today.”

          Stocks Suffer Mini Flash Crash Just As 4th Hindenburg Omen Spotted
          “With someone desperate to sell 6,100 S&P 500 e-mini contracts in 1 second at 12:20:05, US stocks market indices hit a mini-flash-crash air-pocket as the 4th Hindenburg Omen signal flashed in the last 5 days.”

          • Crude fell below 63.00 for the first time since June of ’09.

            • I just checked both my Pockets, which were empty. Can’t get any bailout money from me. Move on Sucka’s!!

              • The sad thing is that, yes they can. It’s called hyperinflation and will be used to both pay off the bailout and siphon off what little wealth is left in the middle and lower classes. Because of the money supply, necessities will cost much, much more than they do now. Even if you have a good food supply, water, etc. and no debt, you still owe rent to your state and local property tax man, and he will demand that you pay him. Fail to do so and you will lose your land and supplies. This is insidious and will lead to revolution if there is anyone left in this country with the will to fight for what is right.

                • Not in a hyperinflation scenario. In an inflationary rise, certain taxes can be raised, but many are locked in place by legislation. Even if those locks were somehow removed (say, pegged to the rate of the hyperinflation as it moved up the exponential curve), the results would be – as you correctly put it – an extremely high percentage of people no longer able to pay. But this would be treated much as the ‘zombie’ defaults were a few years ago, when there were so many that it overwhelmed the banks and local governments, and they couldn’t act on them during the turmoil. It’s taken quite a while for the dust to settle. In the meantime, those zombies had ample time to re-arrange their finances.

            • Does it really matter at this point?
              They can’t get blood out of a turnip.

              • As long as there’s a cookie jar somewhere with coins in it they will keep on stealing.

                • I am not responsible for any such debt.

                  But if they want, I can write them a check.

                  • I am not responsible for any such debt.

                    But if they want, I can write them a check.

                    • BJ, I won’t even attempt to pay such a debt. I wouldn’t give them a dime.

                    • The “$_________” part of the check is too short for all the zeroes, so you’ll have to write the numeric amount in scientific notation!

              • I’m with you, Outwest.

                I ain’t buyin’ into the hype of citizens on the hook for the pissin’ away of trillions to the useless idiot users and takers.

                i ain’t payin shit. I didn’t agree to the liberals agenda of selling us down the river and ‘big bank’ bailouts, faux loans to alternative energy companies that got a free ride w/ their under the table kickbacks to politicians.

                it has all been one political sham of a scam since the mid thirties.

                All the articles in the world about taxpayers owing the Federal Reserve tens of thousands of $$ we already paid taxes on, ain’t scaring me. Not changing my mind.

                i answer to a Loving and Faithful God that will see me thru, and that is all that matters.

                TPTB, and their media pawns, can take their scare tactics and shove ’em where the sun don’t shine. I am happy it’s all coming to a breaking point and the reckoning day will begin.

                Merry Christmas, and a happy phucking new year, preppers.

                • “i ain’t payin shit.”

                  Absolutely you will. They get it from you by devaluing your money. You will pay as there is no alternative.

                  • They can devalue my money, but they can’t devalue my tobacco, alcohol, or weed.

                    • Your correct with barter. Actually the value (true value) of such items would probably increase along with food as shortages are inevitable.

                    • The New World Order can be eliminated overnight and at 500 yards. This is probably how that culling begins. Frankly, I hope that the FED buys ALL US Debt. Then we Kill the FED and eliminate all American debt. The penalty for TREASON is death.

                      Its TOTALLY Constitutional!!! 🙂

                    • BTW folks many people here were to young to remember the Crash of ’87; which was totally engineered to eliminate the S&L’s and their mortgage business because Lew Ranieri at Solomon Bros had created the first MBS, giving the S&L’s a way to avoid disintermediation and package their loans.

                      With that innovation a new profit center was available to the Commercial Banks if they could destroy the S&L’s. The US Government passed regulations RETROACTIVELY that did the job. In the ensuing madness, the government created the Resolution Trust Corporation, to which all bad loans and securities were transferred; and removed from the Bankers books.

                      The same thing could be done the next time around, and it could include derivatives. Just saying. Don’t put anything past these SOB’s. They would sell their mother for a buck. 🙁

                    • Taxes. Sky high taxes. Or they will take over natural resources to “pay the debt” like they did in Greece. They will reach into your bank account or raise your taxes or both and we will still see our water, fuel, highways, lands etc given to nations or corporations “to pay our debt” which is really the banking debt until Congress puts it on our shoulders. They are setting things up for total control of all resources. And it will be to “pay our debt” which is not even ours. Anybody in Congress who votes for this should be put in jail but instead they will get a fat check.

                      It is all over but the every increasing taxes.

                    • Loot, enslave, and kill “even the best of the Gentiles.”

                      Oy veh. Who is surprised?

                    • They have tried with the gold and silver but that charade is coming to an end too.

                  • K2,
                    You are absolutely correct, the Jews are relentless when it comes to money.

                    • sd mule

                      ahh yes another them guys fan/mouthpiece
                      rage on you FU*king nazi

                    • unicorn,
                      You can call me whatever childish name you wish, but you can’t show me where my statement is incorrect. Why is that? Is it because if you look behind the JP Morgan’s, the Goldman-Sachs’s, the Greenspan’s, the Bernanke’s, the Federal Reserve bank branches throughout the US, the Madoff’s, the heads of the major Hollywood production companies, ect, who do you find?? I stand by my statement, you are welcome to present evidence to the contrary. Show me something besides a childish remark, the ball is in your court.

                    • sd mule

                      I never said or implied such a thing. Actually one Jewish friend of mine who left us a couple of years ago was the most ardent supporter of the Second Amendment. His name, Aaron Zelman , may he be known for good.

                • Passin, I’m with you. F#$% the Congress and the banksters. Braveheart ain’t payin shit, either.

              • Outwest..Get blood out of a turnip,no but they can get the turnip.

                • The World was gonna end next month, for the last 4 years. I have come to the conclusion that is is a slow drip into the boiling pot. Get your snorkels ready folks. She-its getting deep.

            • NDAA UPDATE: The wave of Government Taking keeps on Taking. Read this: This is WRONG anyway you look at it.

              Congress could give Native American lands to foreign mining company with new NDAA – Then sneak this into the Bill just an hour before it is voted upon. F*ckers!!!

              Congress is poised to give a foreign mining company 2,400 acres of national forest in Arizona that is cherished ancestral homeland to Apache natives. Controversially, the measure is attached to annual legislation that funds the US Defense Department.

              This week, the House and Senate Armed Services Committees quietly attached a provision to the National Defense Authorization Act (NDAA) that would mandate the handover of a large tract of Tonto National Forest to Resolution Copper, a subsidiary of the Australian-English mining company Rio Tinto, which co-owns with Iran a uranium mine in Africa and which is 10-percent-owned by China.

              The “Carl Levin and Howard P. ‘Buck’ McKeon National Defense Authorization Act for Fiscal Year 2015” – named after the retiring chairmen of the Senate and House Armed Services panels – includes the giveaway of Apache burial, medicinal, and ceremonial grounds currently within the bounds of Tonto. News of the land provision was kept under wraps until late Tuesday, when the bill was finally posted online.


              RE: Sen John McCain A-Hole- Arizona Sen. John McCain was instrumental in adding to the NDAA the land deal that had been pursued by Rio Tinto for a decade, according to HuffPo. Some in Congress were reportedly concerned with the deal, but it ultimately materialized thanks to economic assurances. Rio Tinto claims mining in Tonto will generate $61 billion in economic activity and 3,700 direct and indirect jobs over 40 years.

              Your Property may be NEXT!! Or your Bank Account to Bail in the Banks Thieves.

          • Last I checked, the Dow was at 17,853, down 0.58% with a 105 point loss.

            Not a long lived mini-crash.

            I’m conflicted. While I should want the stock market to do well (because I don’t want people to suffer terrible financial losses from a market crash of -40% or more), I also want to be vindicated for saying out loud that the stock market is way over valued. There are folks who have snickered at me, an Eeyore, and there is a part of me that wants to give a Cheshire grin back if/when the cards come tumbling down. Not very mature of me, but I’ll confess that I want to be right. Which makes me like a bad person for wanting the market to go down! Aaaargh.

            P.S. Whether the banks are able to push off their derivative exposure to the American Taxpayer or not, it will be a bloody bath all the way around for everybody. Say that Congress doesn’t allow it, and the banks can’t hedge their exposure. So the Bank has to declare insolvency. Trust me, that’ll collapse the system whether the American taxpayer is on the hook or not.

            I have this Eeyore mindset who insists on the following items as being realistic:

            o Ebola is not over.
            o Illegal immigration and executive amnesty and border crossings is a social, a physical health, and a financial disaster.
            o ObamaCare is a huge financial mistake.
            o Violence by Liberal Leftist Protesters is on-going.

            When I look at all this, not to mention Islam, Russia, and China, I think there’s a solid chance of at least 25% that there’s going to be martial law and shortage of food in the remaining years of the Obola administration.

            • “(because I don’t want people to suffer terrible financial losses from a market crash of -40% or more)”

              Fuck the people who would suffer the most from a crash. The majority of the middle class ie. any savers, elderly, family’s and anyone who would put money away for a rainy day are suffering unspeakable pain due to 0% interests rates the fed and wall street are setting. Not only are these people suffering great loses the elite are raping their prodigy by stealing any possibility of accumulating any wealth through their hidden inflation. Officially the gov. says inflation is 1%, however any average individual can tell you its much closer to 10-12%. Ya, I might worry about wall street and the stock market but only after the civil war.

              • “Ya, I might worry about wall street and the stock market but only after the civil war.”

                I like war movies. And War is Hell. Not crazy about that happening.

                With regards to a civil war which I’ll rename as an internal war inside the borders of the U.S.A. (because war is not civil), the 1860’s war had clearly defined geographic boundaries.

                How can there be an internal war when there’s no clear geographic boundaries? Moreover, there’s no central command and leadership for the folks opposed to Liberal fascism. The militarized feds versus many various dispersed, uncoordinated well-armed militias?

                If there’s not a mutiny by Oathkeepers within the militarized feds, then I think the militarized feds will turn all those militias into smoking Wacos. You just can’t compete against all the firepower that the Libs can send against a retreat compound.

                The only ways that I can conceive is:

                (1) A mutiny or treason by Oathkeepers against their Lib azz-licking bosses.

                (2) Keeping a database of all the families who work in Federal, State, and Local Law Enforcement. If they move against rebels, then the rebels take the LEO’s families hostage. (“Kill us, and we kill your family.”)

                Only ways that I can think of to preserve Freedom and Liberty against Obola’s Liberal Fascism.

                • Its my belief we are already at war but only one side is fighting at this time. It does look like we are nearing that point that freedom loving individuals have had enough and will start pushing back. As soon as the libtards feel their agenda is slowing or even reversing THEY will fire the first “hot” shot that will start the “hot” war. It will be gorilla on both side for much of it until it needs to end or outsiders become entrenched then all bets are off. I would have preferred a different solution however its apparent we are way to divided for talking and Ocommie and his pals are pushing the divide endlessly. I know I do prefer the idea of fighting the war so my grandkids don’t have to. After all it was mine and mostly my fathers generation that caused the conditions and moral decline that has lead to this shithole.

            • FreeSlave,

              Re: “I have this Eeyore mindset who insists on the following items as being realistic:

              o Ebola is not over.
              o Illegal immigration and executive amnesty and border crossings is a social, a physical health, and a financial disaster.
              o ObamaCare is a huge financial mistake.
              o Violence by Liberal Leftist Protesters is on-going.

              When I look at all this, not to mention Islam, Russia, and China, I think there’s a solid chance of at least 25% that there’s going to be martial law and shortage of food in the remaining years of the Obola administration.”

              I share all these concerns too.

              I don’t have any stocks, but I don’t want to see people suffer terrible financial losses from a market crash.

              Speaking of Ebola…
              On December 3rd, a U.S. healthcare who had been in West Africa was transferred to Emory University Hospital in Atlanta.
              Source: Reuters

              Now, five days later and there is still no word on the results of the test for Ebola. I find that rather odd. Since this was described in the news as “a possible Ebola patient arrives at Atlanta hospital”, you would think if the test was negative – it would be posted.

              Take care!
              KY Mom

              • KY Mom, I feel something is coming myself with all of these things combined. The gravy train is running low and when it dries up totally, all hell will break loose. Take care.

              • If you have a retirement income from a company, chances are it is invested in stocks. If you have direct deposit to a bank, chances are that they will keep a large part of it if needed as you are not a depositer, but a “partner/investor in the bank. They are going to steal your money. (and mine too) Crime is so high that people dont keep thier cash under the mattress anymore and you still have to cash your paper check, so we are fucked.

            • Tell us more about why you think Ebola is not over. Would love to hear your thoughts on this.

            • Ebola is temporarily over because it is Christmas Shopping Season.

              • Ebola is temporarily over because THEY don’t need it right now, when THEY ready, it will be presented to you.

        • Teen Holiday Sales are way down. The Reason= Kids spend all their money on their cell phones and they go on FaceBook instead of hanging out at the Mall to have fun these days. Watch for a lot of Stores and Shopping Mall closures at the end of Dec.

          • 6 hours later and my above post is still sitting in moderation No mans land. I may give up on this website. Becoming a dismal waste of time.

            • You ain’t going nowhere.

              No other site would let you get away with making the kind of death threats you have made here.
              You would be “banned”, “bannished”, “forgotten”.
              Kinda what you get when you pass into the next realm.

            • whodoo, who are you trying to bullshit, yourself perhaps? You have NO life outside of this site and it would be a great favor to all if you simply faded away, but in order to do that you need to have a life, and yours was over long ago.

          • wwt, you are so “out of it” kids don’t use face book anymore, only us “old people”. instagram and twitter is where you will find our youth.

            • It was reported on CNBC that kids are choosing Facebook for fun vs the Shopping malls. Or another excuse like last year it was the cold weather…. (Passin) I have never made any specific death threats besides entire segments of society which need a dirt naps. And I sure can’t do that all by myself, and more than likely they will kill each other when they all run out of food. I find rather exciting watching the Cops and Black fight it out on the nightly news channels. And that is exactly what I said will happen in societal collapse. And the worst will be shot or taken off to FEMA Camps. Somebody or group will strike the right cord over the edge of chaos, and all out battle will begin in big cities.

        • The best part is that Silver is still on sale. Physical demand has increased with the price decrease. This speaks volumes about where smart money is going.

          The mining in my County is going crazy. They are 24/7 operation. People were crying when Silver dropped to $20.00 saying all the miners would be bankrupt in 3 months.

          1 year later, silver drops to $16.37, miners still going gangbusters. Why do you think that is? It is because Silver is real money. Put a troy ounce in your hand and you will know the meaning of value.

          I know so many people who stack now, that bartering with Silver is actually possible in my local area. Right now we could go Galt and have enough “currency” to make a market function, independent of taxes, fees or debt.

          I hope they smash Silver down to $5!

          • I purchased my parts truck bartering with silver. Matter of fact silver was at 32.00 at the time that I acquired for 18.00 so it worked out pretty good for me.

          • At last weekend Gun Show there was a Vendor selling 1 Oz Liberty Coins for $20 ea. A nearly 20% markup to current Value in the $16 range. I guess if you wanted to speculate… I bet we see $12 Silver yet. Maybe he was just trying to recover some of his loses because of the dip.

            • who wudda thunkit

              bet we see silver back to $ 5 and $7 an oz once monkeyboy gets either kicked out or run out
              the whole silver thing is and was a huge scam
              totally faked and scammed by tptb

              watch tv and you will se commercials that want you to run out and buy theire silver and if you read the fine print on one company they Claim silver is below its “all in production costs”
              which include the mining and mining discovery costs

              Really ?? now we have to pay so some company can recover its BS costs

              its all a scam and it will re set after 2016 unless the Clinton whore gets in

              know your enemy

              • I think all commodities and PM’s will get hammered more. Gas under $2; Gold back to $800 and silver just like you said $5 to $7 and what I said a few months back. There will be a huge sucking sound where nothing has value for some time but food and housing costs. Then when it really crashed up goes inflation. I wold be spending every dime of long term food right now. Just got another 24 Case of MRE Entres. Check out MajorSurplus dot com. And the $29 Finnish Gas Mask is just like new with a bag. Every body needs one of those.. Unless you enjoy eating tear gas for breakfast.

        • There’s gonna be a lot of dead scum crooks soon. You know the old saying; ‘when a man loses everything, he loses it.’ What do you think will happen when millions of armed people lose it? Dead scum that were responsible will litter the landscape along with your bodyguards. Hopefully with their heads stuck atop pikes to have their lifeless eyes eaten away by birds.

        • How can America be held financially accountable for this when the total debt incurred would be greater than the wealth of the rest of the entire world?

      2. The banks have been stealing from you for years, what do you think QE is ? it’s taking money from the people and allowing the banks to use it to make them look financially better or use it for their gains.

        This is just showing they dont believe enough people care anymore that they dont have to hide what they’re doing, much like obama does today.

        • Let these Financial Institutions Boil themselves into Oblivion. That’s one way to get rid of the New World Order Crowd. And when you see these Bankster’s in dirty suits, Garbage picking for a meal, kick them in the ass into the can and lock the door flaps.

        • Contrary to the story title, I’m not on the hook for anything. I’ve gone Galt. I refuse to pay into or support this corrupt system any longer. All this news of corruption and graft that is constantly pissing off hard working taxpayers (aka slaves), does not concern me in the least. Every day the plants in my greenhouse grow taller and the fruits get riper. I eat 100% of what I produce and Uncle Sam gets nothing.

          • NC, I’m not on a hook for anything, either. I don’t have any type of loan or credit card to pay on or anything else like that. The banksters have been stealing from us since 2008 and now they have the nerve to have US guarantee their derivatives? NO, I DON’T F#$%IN THINK SO!

            • same here braveheart,

              Just made deposit to pay off balance on credit card used for ordering Christmas for the nieces (four), and nephew.

              When it clears, we are debt free until Jan 1st, 2015 when new property taxes, fire & auto Ins., and utilities, start accruing again.

              Already put back property tax $$ for first two months, so actually we keep the taxes paid ahead in our safe, until the new bill comes out and will have enough banked to pay off 2015 about August.

              Staying debt free as much as possible will bring a lot of peace of mind. We lowered our standard of living, but are happier for it.

          • You have the right idea as long as you do not have any exposure to the banking system.

          • I love the Galt life Nathan Cline. Been trying to convince others of the benefits but most are to brain washed/dead. Glad to know there are some brothers out there.

            • Maddog, I’ve gone Galt to a certain degree. NOBODY is going to leave me holding ANY kind of bag. If they try to force it on me, I have a surprise for them.

            • I paid $5 in credit card interest in 1969 or 70, My mistake, felt bad about it ever since. But I’ll get over it someday.

          • Right now I have one job complete and ready for delivery, and three more jobs pending. No one will ever know what, if anything, I make on any of those jobs or any other jobs I’ve had during the last ten years since I quit working for others. I only work for my wife and me.

            Who is John Galt? I am, and also everyone else who wants out of the system and all of its stress. I am happy every day.

            • I’d keep my opsec better if I were you.

              • There’s no need. If it were the 80s or 90s or even 5 years ago I’d agree. However, at this point, this country is less than 5 years from total collapse. The time is now to take a stand, and show others that it’s not only possible to defeat and rise above the system, but rather easy, as long is one is not a puss who is afraid of hardships. I’m not worried about some government asshole reading my comments and tracking me down. The government couldn’t find me even if they tried, because my home and person is COMPLETELY off the grid, and I use public wifi to access the net. Molon labe

      3. …and the crap continues to pile up with no end in sight. This greed infested nation is like a cancer eating its host to live while killing itself when its host dies. The time of the end is very near!

      4. 101 reasons why the POS government can stuff it!

      5. Communism is not only about Secret Police in funny uniforms or standing in line for Toilet Paper. Like Russia/China and the U.S., the Bankers/Top Businesses cut deals in exchange for Government regulations which favor them. Also Government contracts too.

        EVERY Communist country has a group of Elite/powerful people who “milk” the middle class.

        As V.I. Lenin said, “You grind the Middle Class between the stones of high taxes and inflation”.

        If you think seriously about it, Communism = Organized Crime.

        Stage #3 of a Communist takeover is Crisis, which might include some sort of economic collapse? Stage #4 Martial Law

        • What we have in action here is clearly fascism, not communism.

        • I’m of the mindset that its fascism at the very top with communism for everyone below.

        • High taxes and inflation will only exist with JEW money; that is to say, fiat shit! When, oh when will Americans wake the hell up and realize that the “Federal Reserve” is a Rothchild bank!!! Plain and simple if you will only open your eyes! How do you think that the Dreadful Few gained control of the entire world? It’s their bullshit money which is nothing,..NO THING but the damn stupid fools of this world keep thinking that it is something,..SOME THING; No, no, no, it is nothing but illusion, nothing else. Avail yourselves of the mountains of information out there that prove to even the slowest wit amongst us that this Jewish Monetary System we all suffer under is nothing more than a tool to enslave us and destroy our nation. Wake up, no time left, wake up!!!

      6. I think we were promised that there would be no more bail outs. There should be hangings, electrocutions, and beheadings for the irresponsible bankers and politico’s that have made these bets on interest rates they can’t control. Reinstate Glass-Stegall and make it permanent.

        • It is time to TARGET the true problem….anyone working for or involved with any government agency!!! Aim small miss small……

      7. The New World Order is a hydra-headed monster. The bankers work through many fronts such as Communism, socialism, liberalism, feminism, Zionism, neo conservatism and Freemasonry. Unknown to most members, these “progressive” movements are all secretly devoted to “world revolution” which is a euphemism for banker hegemony. (See my “Rothschild Conducts Red Symphony”)

        The bankers control the world’s major corporations, media, intelligence agencies, think tanks, foundations and universities. They are responsible for suppressing the truth. Jews figure prominently in all of this, a cause of anti Semitism. Of course many other people are pursuing “success” as well.

        The bankers also work through countries. They are largely responsible for British and American imperialism, whose aim is to monopolize the world’s wealth. In his book “The Jews” (1922) British social critic Hilaire Belloc writes that the British Empire represented a partnership between Jewish finance and the British aristocracy.

        • Stolz:

          Center of it all is Rothschilds’ City of London. Their money and the use of the American military = OWNERSHIP OF THE WORLD.

          It is all spelled out for you at iamthewitness dot com.

      8. I,IMHO, say bring it on! I, like you, am tired of the BS. MSM says nothing and promotes complacency. The ANM (alternative news media) cant produce a definitive article on what is going on and what to do about it. The Gov is quickly fencing us in with draconian and oppressive laws. The banks and the Fed Res plunders us daily. And to top it all off, God Himself is ready to smash us flat at any time.
        So, lets get it on and see who wins. My money’s on God. So we either get hammered back to the stone age or an 1800’s type society or we wind up being slaves in the Hunger Games.
        I think the stone age or the 1800’s will be more ideal for liberty and freedom, So bring it on. We cant escape it or stop it, so why prolong it? All the warnings in the world will not stop what’s coming, so why not speed it up? All it would take is for the majority to just stop paying tax’s and send a letter to congress and withdraw your concent to be governed by Washington. And start demanding that your state legislature withdraw as well. That would get it started then we could see what will happen.
        Just thinkin again, bless you all.
        PS: When the SHTF, and we start losing, This will hasten the day of the Lord and the return of Christ. Something that the PTB boys do not want, hence the incremental tactics of our oppressors.

      9. Want a picture of the future?

        Go stand in the middle of your local scrapyard and look around. This will become true wealth. Learn to used old parts to replace worn out ones or fabricate new ones.

        Buy some snares, legholds. body traps or even live traps. When the shelves are bare you will be eating muskrats, possoms, coon and maybe even a rat or two.

        Invest your spare cash in the First Bank of Mattress.

        • Still got my old Victor conibear and no.5 double spring jump traps from days gone by. Got a few coon gums too.

        • Yeah I’ve been doing that for 15 years already (the scrapyard thing). At least.

          It positively baffles me, the utter lack of ability to repair even the simplest things, displayed by the average consumer.

        • Bank of Sealy to follow shortly.

          I mean why not, it’s not like they pay you interest anymore is it?

        • Ive been hoarding scrap junk for more than 40 years. I hardly ever buy new parts. I have 3 model M farmalls that I use and two junked ones for parts. I have a 273 new Holland square bailer that I use and two junked ones for parts. same with my bulldozer I have a good one and one for parts. I drive 1960,s trucks and have 25 more to use for parts or to put back into service. they are all 64 thru 66 chev & GMC. Some really big companies will buy two brand new machines at the same time and use one for parts. It might be great idea for gun buyers to copy?

          • Two issues on that. One, I have an 30-06, 03 hanging in the basement. Made in 1921, still works fine, the 03-A3 next to it made in 1943 is in better shape yet and the M1 Garand works like new. The A1A is near new. Just generally speaking I don’t figure I need a spare for my 5, 9MM Brownings they really last. or my 1911. Two, I might need a spare for my .22 Winchester it’s 80 odd years old but I don’t shoot it much these days , and my Remington should do OK. But we shooters will take your thoughts under advisement.

      10. I’m in agreement with others. Seems like we are nearing the end of the game.

        Calling your congressman to complain does no good. When the derivatives pop. Whether it’s backed by the taxpayer or not. The global financial system will be in chaos.

        • Sierra Dave

          I’m with ya on that.

          I’m hoping if but its more likely when this thing goes its catastrophic. The thought of 10, 20, 50 x the world GDP is mind boggling. I’m at a loss to think how that happen. Fractional reserve? How do you have a million and gamble a billion?

          My fear is that something this economically destructive and dynamic tends to end in war. Not some little war with 3rd world peasants but global war starting with alliances of nations grouping together to take resources, food, energy off their neighbors in desperation. Governments falling and despots like Hitler promising, promising, promising.


        • Unfortunate for me, no way in heck would I call Al Frankenstein… If I said “Boo”, he would have to look it up in the dictionary, and then have me arrested for making frightening threats.

      11. America in a chokehold…

        The people can’t breathe!

      12. Yup…bring it on and lets be done with it. The longer it takes the harder it will be and the more casualties. Lets see TPTB try to grow their own crops,fix their cars and the miriad other things that us lesser people do so they live in style.

      13. I’m sure you’ll all be completely surprised when the stack of junk derived from other junk topples over. Sad no one here has known or prepared for this historical event.

        Derivatives are all stacked on a pin point, picture an upside down pyramid with more soft wealth being derived from the balance point. At this time the workers are bracing the pyramid with fiat paper straws. Sooner rather than later the straws are going to give and over it goes, right on top of our heads.

      14. Attention: Sheeple

        Take ALL your money out of savings, IRA, safety deposit boxes, etc.

        Place only sufficient funds in the bank to cover the checks you write to pay bills. If you use your phone or computer to pay bills, well, then, you need a lot of extra help! Why? Because when the system goes down, AND IT WILL SOOO VERY SOON, your credit cards, EBT cards, and all the rest won’t get you jack from the banks..and the ATMs will close down FIRST!

        Then, the oligarch motherfuckers will start taking it out of your accounts, safety deposit boxes, etc.

        Wise up before its too late, and its getting to that time!

      15. Starting to be like when you know you’d feel better if you just went ahead and made sick–Like Bush #41 in the Japanese Ambassador’s lap.

      16. Can we all say KISS YOU ASS GO BY. If the banks get this it is OVER.

      17. I don’t claim to understand alot about the economics that goes on. All I know is the more complicated something is, the easier it is for these a-holes to lie, steal and cheat. Where’s a planet killer asteroid when ya need one?

        • Its on its way.

        • NUBIRU…dant dant duuuhhh
          THE END?

      18. Sept 13th 2015 will be the end. Make sure you plant extra beans this year.

        • i’m thinking some extra taters as well


      19. When in the WIDE WORLD OF SPORTS are we flat going to stop saying this SHIT SUCKS and do something about. I’m putting my money on never. We’re done, so why in the HELL worry about when this collapses or that collapses, absolutely nothing less than a REVOLUTION is going stop it now. I say get on with it or shut the F~CK UP. I’m ready to make my stand how about you?

        Phil Collins: I don’t care anymore!


        • I think some people are already starting to heat things up. There seems to be a lot of so called random killings all over the US and the socialist media does not talk about. I don’t think many are so random anymore, maybe the revolution is slowly picking up speed and just isn’t getting reported. As a patriot remember to do your part!

      20. WOOT WOOT, the “2008 To Big to Fail,” crazy train is coming through! All aboard? No ticket takers this time around?

      21. If the asteroid kills everything on the planet, that’s not good. The crime bosses go deep underground. Usury or bust.

      22. Calling Congress is a joke. Remove all assets from corporations, exchange all fiat currency for physical assets. Take care of the people close to you, reject all others.

      23. Off topic, but still of interest to some, perhaps. You know Dr. Jonathan “let’s lie to get ObamaCare passed” Gruber, right? Now he’s back at it again, suffering another round of hoof-in-mouth disease: Do you like eugenics, such as Hitler’s Aktion T-4 programme (think the Nazi Lebensunwertes Leben, “life unworthy of life” – or bumping off handicapped kids, etc.).

        In keeping with Planned Parenthood founder Margaret Sanger (you know… the one who literally called African Americans “human weeds” as she sought to bring abortion into use among minorities), the mad herr doctor Gruber is now, per Breitbart, “on record repeatedly making the case from social science that abortion is a “social good” because it reduces the number of “marginal children,” by which he means urban poor—those he says can be counted on to commit crimes if they were ever born.”

        Breitbart adds “Gruber co-authored a paper during the Clinton years which argued that legal abortion had saved the U.S. taxpayer upwards of $14 billion in welfare benefits and that it also lowered crime. Gruber’s work heavily influenced other researchers, including a paper called The Impact of Legalized Abortion by Steven Levitt of the University of Chicago, whose later bookFreakonomics and whose ongoing work makes the strongest case that abortion legalizations in the 1970s caused a dramatic drop in crime twenty years later.” For the first time in over 100 years, apparently Jesse Jackson and Al Sharpton have no comments

        No word yet it Gruber plans to increase the social good by turning these marginal kids into Solyent Green… or if it might be of even more social good to reduce the number of insane professors who keep tripping over their tongues.

      24. “Sadly, most Americans don’t know how derivatives work…”

        Well, count me in on that. I thought they were basically hedges, like interest rate swaps or CDS that banks used to mitigate their risk. So, even if the total value of these derivatives is in the trillions of dollars, some of them would actually cancel others out if triggered in a default.

        Even if a default payout was triggered, like in the Greek bonds, the regulatory body in that instance refused to allow a default on those bonds.

        The same would probably happen in this case since there is a precedent now. They would declare a “non event”.

        How am I doin’ here DK?

        • Your asking the wrong poster.

          For a more accurate answer ask the likes of Possee, Breathial or helot….not d kiddie the pretender.

          • You owe me a new keyboard, BJ.

            • Why?


              • @BJ;
                because he just spit coffee all over it b/c of your reference to DK.

                I had to look up what a derivative was in the article last week. Here is a link (take out the space) that explained it in terms I could understand.

                ht tp://


                • Thanks for the link…..I had heard before, but it wasn’t put in such easy to wrap your head around terms.

      25. Tge repubs will make sure this happens will they gain control of Congress.

      26. We have been paying more for food and fuel because of the bankers manipulating the derivatives market. The bankers have no business in the deritivities market. Swinging Richard is correct Clinton and Gingrich introduced and supported the repeal of the Glass Stegall legislation that kept the bankers on a choke chain since the Great Depression. Gingrich and Clinton got rid of glass Stegall in 1999 or 2000. Eight years later the bankers created the housing bubble bust through their manipulations. Don’t bail these fraud/criminals out again. Reinstate Glass STEGALL.

        • Um, derivatives most certainly are a part of investment banking, and have been for centuries. Study up on what derivatives actually are. Not just credit default swaps.

          But yes, the virtual repeal of Glass-Steagall has led to the predictable (and predicted at the time!) results. We the people weren’t paying attention then, and we still aren’t. 99.44% of the voting public doesn’t understand thing one about how finance works. I genuinely suspect that 90% of economists don’t, either. Certainly Paul Krugman doesn’t, Nobel Prize or not. And, having a couple of investment bankers in the family, I don’t think THEY understand it all either. It’s a chaotic system, in the mathematical sense, like weather.

      27. Clinton and Gingrich need to go to prison for repealing Glass Stegall which allowed all this to happen

        • why, that was their plan,, its working fine if you ask them

          as they roll around in your money

      28. this is…

        simply f*cking criminally insane.

        it’s nothing but worthless repackaged debt vehicles in the 100’s of trillions.

        debt + debt = debt

        der’… can we say ILLEGAL PONZI SCHEME boys and gurl’s.

        And they want YOU ON THE HOOK to pay for it via NATIONAL DEBT and TAXATION to infinity and beyond. FOREVER!

        insane. insanity. is the only way to describe
        wall-street now.


        they have no other choice now as it is BUT TO DEFAULT AND RESET!


        wink wink

        • Hey,
          how do you embed the youtube videos?


          wink wink: This country was bankrupted in 1933 when the zog prez (banker) roosenfelt confiscated all the gold. congress reaffirms this every 7 years. this country has been owned and operated as a private business since.

      29. How’s this for a scenario?

        Friday January 2, 2015: Bank Holiday declared to deal with so-called or alleged “cyber fraud” which you and I know is to mask nation-wide THEFT of your accounts.

        Monday, January 5, 2015: Banks reopen and customers learn their money is only worth one-tenth of what was in the bank, while they see their retirement funds stolen en masse.

        Isn’t that a “derivative” of what they pulled in Greece when the good ole boys gave them all a “haircut” as a test run for haircuts elsewhere?

        The late psychiatrist Dr. M. Scott Peck, M.D., said it best when he wrote, “The truly evil don’t reside in jail.”

        – the Lone Ranger

        “The hottest places in hell are reserved for those who, in times of great moral crisis, maintain their neutrality.” – JFK

      30. DK, can you provide any source material for your suggestion at Comment ID: 3285093 ? That’s a VERY interesting theory, that actually makes some sense. I’d like to go into it further.

      31. Good News gas prices are still falling. Gas is less than $2 per gallon in parts of Texas & Oklahoma today. I paid $2.38 here in Arkansas.

      32. Banks Push Congress to Insure TRILLIONS in Derivatives: “Americans Could Be on the Hook for Absolutely Massive Losses”

        Banks Push Congress to Insure TRILLIONS in Derivatives:
        Banks could be on the hook for Absolutely Massive Losses

        There I fixed it for us,, fuck them

      33. Wanna know what keeps me going day after day?
        An open season on bankers that’s coming our way.
        Burying legislation in funding bills
        Is the cause of our ills
        because corruption and greed
        Is all they need

        There is a way to preempt the coming conflagration
        A way to save our once great nation
        To slap the Banker from the taxpayer teat
        They need to fear walking the street.

      34. Covering the EU derivatives is a disaster in itself. Their economies are falling as we speak. The Feds also bailed them out with 16 trillion in fake money created by them to the IMF a few years ago.

        If this derivative insurance for US big banks is slipped into our continuum spending bill, and it passes, it will add to our economic crash, because the banks will fail.

        Is it fate? Seems fate is an unstoppable direction when lessons were not learned from 2008 and big bank CEO’s don’t give a damn.

        It underscores Biblical prophecies that Satan knows he will be thrown into the lake of burning fire yet he won’t stop destroying lives, bringing him to this conclusion.

      35. isnt it time to try a bunch of people as traitors

      36. Arm yourself and hope for the best!

      Commenting Policy:

      Some comments on this web site are automatically moderated through our Spam protection systems. Please be patient if your comment isn’t immediately available. We’re not trying to censor you, the system just wants to make sure you’re not a robot posting random spam.

      This website thrives because of its community. While we support lively debates and understand that people get excited, frustrated or angry at times, we ask that the conversation remain civil. Racism, to include any religious affiliation, will not be tolerated on this site, including the disparagement of people in the comments section.