Increase In Bank Sub-investment Grade Derivatives Reveal A Need For Gold Insurance

The financial crisis started with banks getting burned in the derivatives market. Then TARP was manipulated to help banks get cash. Next came the Federal Accounting Standards Board (FASB) allowing banks to mark to model (fantasy) their real estate assets (cheat). And now we have come full circle once again as banks own more sub-investment grade derivatives today than at the height of the 2008 financial crisis. Does History Repeat Itself? In 1929-1933 it wasn't inflation that caused people … [Read more...]

$4 Trillion Bank Sub-Investment Grade Derivatives Now More Than Financial Crisis Peak Part 2

Continued from Part 1 Just Who Will Be the Counterparty to These Credit Derivatives? There are two sides to every trade conducted; a buyer and a seller. When you buy a share of XYZ Corporation, you assume there will be a liquid market to sell that share when you are happy with your profit or fed up with your loss. But what would happen if there was no counterparty to that transaction? What would happen to that share of XYZ stock if you couldn't find a buyer? What if no one wanted your … [Read more...]

$4 Trillion Bank Sub-Investment Grade Derivatives Now More Than Financial Crisis Peak Part 1

This article analyzes the top 5 banks future problems with the over $4 trillion sub-investment grade derivatives maturing in the next 5 years, an amount that is greater than at the peak of the financial crisis. Have we learned nothing? Did anyone in the financial media report on this? Banks Are Not Reducing Risk, But Taking On More There are over $600 trillion reported derivatives, most representing normal business activity by companies to control their cash flows. U.S. commercial banks … [Read more...]

The Real Reason Bank of America Halts Foreclosure In 50 States – They’re Broke!

Bank of America came out today and announced they are halting foreclosure in 50 states because of potential flaws in foreclosure documents.  But its not just Bank of America that is halting foreclosures. More and more banks are joining the list to halt any foreclosure action, including JPMorgan Chase. Also Friday, PNC Financial Services Group Inc. said it is halting most foreclosures and evictions in 23 states for a month so it can review whether documents it submitted to courts complied with … [Read more...]