BofA shifting 74 Trillion to taxpayers.

Discussion in 'Politics, Religion, Social Issues' started by StruckANerve, Oct 21, 2011.

  1. StruckANerve macrumors 6502

    Dec 31, 2008
    Rio Rancho, NM
    A little fuel for the OWS fire. There are sources at the link.

    Bank of America Trying To Stick Taxpayers With A $74 Trillion Bill By Moving Derivatives Into FDIC-Insured Accounts
    And after a little digging because I thought the 74 Trillion number sounded absurd I discovered this little gem on Wikipedia.
    Utterly mind boggling. I had no comprehension of the size of these markets. I can't even grasp what it even means or what you do about it.
  2. Sydde macrumors 68020


    Aug 17, 2009
    What happens if they get their way? Does the US government then collapse under the flood of red ink? I hear the libertarians celebrating next door. No more tyranny (only misery).
  3. itcheroni macrumors 6502a

    Sep 23, 2005
    Libertarians would be upset that all these guarantees were made in the first place, not happy that it will cause so much destruction. When trying to bash a group, at least have try to not be so obviously selective.

    And OWS will keep at Wall Street when the real change needs to take place in DC.
  4. Huntn macrumors P6


    May 5, 2008
    The Misty Mountains
    Is that legal? Is so the government should intervene to stop it. Derivatives are part of the reason we are in our current financial mess.
  5. itcheroni macrumors 6502a

    Sep 23, 2005
    I believe it is legal and it's going to destroy us. I have always advocated letting the so-called "too big to fail" banks go ahead and fail. The phrase "too big to fail" was just effective rhetoric to convince the public to accept Washington handing these institutions a blank check backed by U.S. taxpayers.

    I know the argument is that letting these institutions fail would have caused immense financial pain. I don't doubt that. My argument is that eventual pain we feel would be exponential. The banks have kept increasing the amount of derivatives since being bailed out because they know they won't have to pay for any losses while keeping the gains.
  6. macinnv macrumors regular

    Jan 17, 2011
    Phoenix, AZ
    This is correct. From what I read on this story, the Federal Reserve allowed BofA's actions, while the FDIC didn't. If there is any group in American politics challenging the actions of the Fed, its the libertarians.
  7. jsolares macrumors 6502a

    Aug 8, 2011
    Land of eternal Spring
    Reading this sent a chill down my spine... well i guess better stock up for the coming end of the world, i guess the mayans were right after all :S
  8. flopticalcube macrumors G4


    Sep 7, 2006
    In the velcro closure of America's Hat
    I think the real worldwide figure is closer to 4 quadrillion but that is really splitting hairs (and raising them at the same time!).

    As a former member of a "Blue Blood" derivatives desk, I can't disagree with itcheroni.
  9. hulugu macrumors 68000


    Aug 13, 2003
    quae tangit perit Trump
    The Occupy Wall Street movement is increasingly able to walk and chew gum at the same time, having birthed Occupy groups in Washington and 60 other cities.

    Moreover, the fury at Wall Street is deserved. How can anyone in the financial market who can pretend that building a system worth more than the entire world economy, paper dolls of paper dolls, be trusted? Though these companies seem to believe in bailouts, how can they continue to grow beyond the size of the ship that might rescue them?

    And, that's what tells me that even without some government encouragement through Fannie and Freddie Mae (or the SEC's abject approval) the banks would have done the same stupid thing.

    Unlike bailing out the car companies which protected real jobs and has turned a profit, the money given to the banks has been an absolute waste.
  10. jav6454 macrumors P6


    Nov 14, 2007
    1 Geostationary Tower Plaza
  11. Sydde macrumors 68020


    Aug 17, 2009
    Seriously, can you realistically extricate Wall Street from from Pennsylvania Avenue (which does go to the capitol as well, if I am very much mistaken)? The nasty, nasty government defines the parameters of society, the markets operate within those parameters, attempting to get them adjusted when possible. itchi cannot lay the blame on Washington, and you cannot lay the blame on the NYSE, et al, it must be shared, and we simply cannot overlook this symbiosis when trying to craft a fix. Pointing fingers mostly just annoys people and facilitates procrastination. We must get past the blame game to deal with the reality (not much fodder for optimism in that, sorry).
    In the sense that the $800B+ bailout of '08 has nearly been fully returned (paid back), the money was not wasted because it has been recovered. Yet, in the sense we held the scamblers' heads up long enough for them to get their breath back so that they could dive back into the steaming pile of pasture patties, "absolute waste" does not come close to describing the damage that will result from saving these guys' posteriors.
  12. mcrain macrumors 68000


    Feb 8, 2002
    This is not only legal, but encouraged by some of a certain political persuasion.

    Guess who.

    (edit) Guess who also happens to be blocking regulation of this industry. Guess who refuses to approve of any nominee of any agency tasked with overseeing these types of trades.

    Hint. It's not the Democrats.
  13. iJohnHenry macrumors P6


    Mar 22, 2008
    On tenterhooks
    And if they can get away with it, they deserve to.

    "All it takes for evil to triumph is for good men to do nothing." (May not be an exact quote.)

    It's amazing how many times, since I first saw the movie, that this line from The Magnificent Seven comes to the fore.

    "If God had not wanted them shorn, He would not have made them sheep."

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