Forum Post: BofA Just Dumped $79 Trillion of Debt onto the American Taxpayer.
Posted 13 years ago on Oct. 20, 2011, 10:02 p.m. EST by JohnB
(138)
This content is user submitted and not an official statement
http://dailybail.com/home/holy-bailout-federal-reserve-now-backstopping-75-trillion-of.html
This amount is 5 TIMES GREATER than the entire U.S. GDP!! These toxic assets are tied directly to the Euro zone. If the Euro zone collapses (as it looks like it is), then there are only two outcomes:
1) You're net worth and monthly income will be reduced to 1/5 of it's current amount. Should this happen, the dollar will become worthless, and those who do not have other non-currency investments will become extremely poor overnight.
-or-
2) There is a full-scale revolt that results in a debt jubilee - all debts forgiven.
This outright fraud on the part of BofA eclipses the entire financial collapse of 2008 by FIVE TIMES!
Agreed, it is time we as depositors put an end to the existence of these mega-banks, so perhaps you would consider our group's proposal of an alternative online direct democracy of business and government at http://getsatisfaction.com/americanselect/topics/on_strategically_weighted_policies_organizational_operating_structures_tactical_investment_procedures-448eo and then direct questions or comments to our group's 19 members committed to that plan at: http://finance.groups.yahoo.com/group/StrategicInternationalSystems/
http://www.bloomberg.com/news/2011-10-18/bofa-said-to-split-regulators-over-moving-merrill-derivatives-to-bank-unit.html
My understanding is that in transferring these risky derivatives from Merrill to the bank side with FDIC insured assets, it could cause a failure of this one subsidiary, putting the insured assets at risk. That means, should the derivatives go sour this subsidiary would fail and the FDIC would conceivably be on the hook for the deposits.
Unless the govt persuades Chase to buy them out or something, like they did with WAMU.
BOA doesn't even hold 1 trillion in assets. When I first read the article I was in shock, but then after reading the comments I realized that nobody is talking about printing 75 Trillion dollars. I don't understand it completely, and it's pretty clear that this is a bad situation but I don't think we have to worry about actually printing 5x the national GDP.
I hope not. What do you think are the possible outcomes from this?
It's honestly too complicated for me to want to try to understand... which is part of the problem with the whole system
I forgot to explain how #1 works. The only way to pay that debt off is for the Federal Reserve to print $79 Trillion dollars. This 5 times more money than in the entire U.S. Economy. So the only way those dollars can represent the same amount of total wealth, is if each dollar is worth 1/5 as much.
Bernanke's not a fool. He's a pirate. One that needs to be lynched
lol no one is really discussing this