Wall Street Crash montage
(Image by Ninian Reid) Details DMCA
In the more than six years since the 2008 Wall Street crash, nothing has been done to rein in the abuses of the parasites in pin stripes that were its cause. Another crash is inevitable.
My guess is, it will come in late 2016, when the banksters have selected the candidate for president that will be as dependable an ally as the incumbent he or she will replace, as they did in 2008, to insure maximum political protection.
But it could come sooner, unscripted, set off perhaps by a bad bet in the almost $300 trillion derivatives casino. But whenever it comes, what happens next? Another panic on Wall Street, the banksters desperate to call in their bets and not be the one left standing when the music stops, forced into bankruptcy?
Down to their last $20 million, stashed away in some Swiss or Cayman Island bank.
Not a chance. Give the devil his due. Understanding that in the next crash, the American people would crucify any president or member of Congress that approves another bail out, the banksters have set up an automatic bail out, which will be called by other names.
Step One. At the November meeting of the G20, the leaders of the developed nations put in place a new global banking policy, the confiscation of deposits in the event of the next crash, called in the media a "bail in."
It wasn't called either of those terms by the G20, just a responsible sounding policy developed by the global banking bureaucracy to guarantee "global financial stability" -- meaning whatever happens next, their bankster bosses stay rich.
But the banksters know the next crash will be bigger than the last, and confiscating deposits alone may not do the trick.
Step Two. In the week before Christmas, Wall Street got their errand boys in Congress and the White House to enact legislation that allows them, as Pam Martens explained on her web site, Wall Street on Parade, "to keep their riskiest assets -- interest rate swaps and other derivatives -- in the banking unit that is backstopped with FDIC deposit insurance, which is, in turn, backstopped by the U.S. taxpayer, thus ensuring another bailout the next time [Wall Street] blows itself up with bad bets" in its derivatives casino.
The Office of Controller of the Currency reports $25 billion in FDIC insurance, against $9,283 billion in total US deposits, and derivative exposure among the top 25 banks of $297,514 billion -- nearly $300 trillion.
A failure of any one the mega banks could wipe out the FDIC, leaving depositors in the other mega banks and the 6,000 smaller, community banks unprotected, forcing Congress and the president to bail out the FDIC.
You gotta admit, from the point of view of a Wall Street errand boy in Washington, this is a thing of beauty. Not only will the Congress and president not have to approve either the bail in or the back door bail out - they will be automatic, a matter of statute law -- but then, they get to ride to the rescue of millions of threatened and frightened depositors by saving, not Wall Street, but the FDIC and their deposits.
Or as much of them as remain after the bail in.
Municipal deposits are at even greater risk. They are not insured by anything, except the good faith of the banks that hold them and the collateral that these banks say they have to cover them.
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