Its funny not in a HA HA kind of way. The banking crises.
A while back when these people kept sending me information I fanally got pissed off and sent them a reply and told them I (thanks to you MF favorate bloggers) that we were facing a depression. I also set them straight on the actual unemployment figures and everything esle they were missing. Now 2 week after that they started coming out with their new predictions. Thanks to you my friends you made me look good. Here are the people. And here are their predictions.
Massive Risks at America's Megabanks
(bill. of dollars) B of A Citi B of A + Citi JPM 9/30/2008
Total assets 1,831 2,050 3,881 2,251 All derivatives 38,186 39,979 78,165 91,339 Credit default swaps 3,291 2,467 5,758 9,250 Exposure to defaults by trading partners 177.6% 259.5% 400.2%
Fact #1. Too big to save. Bank of America Corp. and Citigroup, Inc. have combined assets of $3.9 trillion, or 43 times the size of the Treasury bailout funds they've received to date.
Fact #2. Bigger losses ahead. Even before any further declines in the economy, an unusually large portion of their assets are already in grave jeopardy — commercial real estate loans going sour, credit cards loans tanking, auto loans sinking, and residential mortgages turning to dust. Now, as the economy continues to tumble, avoiding much larger losses will be almost impossible.
Fact #3. Big derivatives players. Bank of America and Citigroup are the nation's second and third largest high-rollers in the derivatives market, with a combined total of $78 trillion in these bets outstanding. That's over ten times the derivatives that Lehman Brothers had on its books when it failed last year.
Fact #4. They've bet far too much on each other's failure. Bank of America and Citigroup are also the second and third largest participants in the most dangerous derivatives of all — credit default swaps. These are the big bets that financial institutions make on the failure of other major companies.
But participants in this market are like shipwrecked sailors in a sinking lifeboat betting fortunes on who will live and who will survive: If a company bets too heavily on failures and too many companies actually fail, who's going to make good on those bets? Ect.
So don't count on Uncle Sam to save your bank, your business, or the economy.
Keep up to 90% of your money in cash.
Avoid bank deposits as much as possible, using mostly short-term Treasury bills or equivalent.
Above all, focus on building up your own resources and finding alternative sources of income or profits. For specific instructions on precisely how, click here for our comprehensive report.
Good luck and God bless! So thank you fools for keeping me up to date and looking good. My dad passed on Jan. 10 at 10pm. Take care and Blessings to all. Thank you for serving past and present. Lynda.