Hunting the Squid, Part 2: Since When Is Enough Derivative Exposure To Blow Up The World Something To Be Ignored?

Reggie Middleton's picture

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Georgesblog's picture

In the last quarter of 2007, I knew that the derivatives issue would raise it's ugly head. I knew the banks and the politicians were whistling past the graveyard on this issue. Hundreds of trillions?!!!!! Are they nuts? This is a whole lot more serious than coming up one horse short on a Superfecta play. 

http://georgesblogforum.wordpress.com/2011/06/18/the-charge-of-the-carpe...

disabledvet's picture

I think GS is getting into looks more like base-jumping to me. http://www.youtube.com/watch?v=I4U6T_BB1N8&feature=player_detailpage I don't know...looks dangerous. Perhaps instead of "the Canary in the Coal Mine" you could call it "the Canary in the Wharf"? http://www.youtube.com/watch?v=xKJ_jWBqoUw&feature=player_detailpage

rocker's picture

Too Good for Words

 

rosiescenario's picture

Cayman comes in at the number 3 spot for cross border exposure.....got to wonder what that represents.

 

I used to dive there before the banksters went and ruined it for normal folks.

slackrabbit's picture

Hey Reggie

What are your thought on  BNP's exposure to Russian losses? Just curious as there doesnt seem any dat on it - or news?

ebworthen's picture

Reggie - you are looking buff.

Did WB7 help you with that first graphic? Nice work whoever did it.

Derivatives exposure 4X  WORLD GDP!?!?

No wonder MS and GS are crashing.

Kill the Vampire Squid!!!! (and keep them from enslaving our progency through illegal debt taxation and currency debauching schemes, a.k.a. = END THE FED!!!).

Keep up the good work; my Claymore and War Hammer stand ready to assist you in our quest.

bankruptcylawyer's picture

if goldman has to crash ladn on something, i hope it is your abs of steel.

 

damn you iz ripped reggie!.

as usual, you the man.

 

falak pema's picture

...interrelationship between acute masculinity and propensity for intense intellectual confrontation...

This is an interesting thread in terms of symbolism and I'll pick up the gauntlet. By presenting a counter thread...

Now imagine an ice cream cone...dripping with strawberry slush in bulbous cups on top, like symbols of feminine seduction...will the crunchy cone stem incite the cups to cum in acute meltdown of derivative type through intense confrontational interrelationship with propensus male conical protrudence, intellectually galvanised into total crunchitude for the cause of feminine plentitude?

That would be african jungle musical encounters of third type. I'm thinking Miriam Makeba or Shade...

aerial view's picture

Nice work RM. Aren't GS and the rest counting on TBTF backup again and basically playing with the Fed's infinite money printers as recent GAO audit showed $16 trillion secretly given to US and foreign banks at 0% interest with no strings attached?  

nah's picture

splode the squid

.

throw everyone else in prison

JR's picture

If there is any entity at risk of counterparty default or who is at the behest
of a government bailout if the proverbial feces hits the fan blades…
Ladies and gentlemen, that entity would be known as Goldman Sachs… it has been a constant trend through the bubble, and amazingly enough even through the crash as banks have actually ratcheted up risk and assets in a blind
race to become TBTF (too big to fail), under the auspices of the
regulatory capture… Oh yeah, that perpetually printing clinic also known as the Federal Reserve just might be running a little low on that cheap liquidity antibiotic... Just giving y'all a heads up ahead of time... -- Reggie Middleton

The appointment of Mario Draghi puts Goldman alums in charge of the European Central Bank, the Bank of Canada (where Mark Carney is the Canadian Greenspan), and the World Bank with Robert Zoellick, and of course, the Federal Reserve Bank of New York where William Dudley sits at the helm of all Goldman decision-making policy for Bernanke at the Fed, after Goldman’s Robert Rubin protégé Timothy Geithner left the NYFed to take over the U.S. Treasury from former Goldman CEO Hank Paulson who, with Benjamin Bernanke, protégé of Israel’s Central Bank Governor, Stanley Fischer, destroyed Bank of America by designating it the cartel’s scapegoat.

The courage of a few brave men, armed with the knowledge provided by the Middletons, Taibbis and Durdens, one day will take on this cartel, and we’ll see them scatter like cock roaches exposed to the light.

Thanks again, Reggie.

SILVERGEDDON's picture

GS already did some minor pan handling for spare change at the FED. So, they go back for a 900 trillion dollar touch this time. No problem, Bennie Bux are easy to find if you are a bankster club card carrying member - problem solved! All you American taxpayers - get back to work to pay for the free money, willya?

The Federal Reserve is neither Federal nor a "Reserve". This private bank run by the "Bank of England" has been stripping the US of its assets since the days of Andrew Jackson.  If the $16,000,000,000,000.00 given away secretly, since 2007, to the member banks isn't reason enough to overhaul our entire government financial system then our country is doomed to financial failure. You won't read this in the mainstream media....but it may emerge in the coming elections. Read about this first ever audit of the Fed and understand why we are in such trouble.  Tuesday, September 27, 2011 First Ever GAO Audit Of The Federal Reserve

(You can click on the site and read the report).

The first ever GAO audit of the Federal Reserve was carried out in the past few months due to the Ron Paul, Alan Grayson Amendment to the Dodd-Frank bill, which passed last year. Jim DeMint, a Republican Senator, and Bernie Sanders, an independent Senator, led the charge for a Federal Reserve audit in the Senate, but watered down the original language of the house bill (HR1207), so that a complete audit would not be carried out. Ben Bernanke, Alan Greenspan, and various other bankers vehemently opposed the audit and lied to Congress about the effects an audit would have on markets. Nevertheless, the results of the first audit in the Federal Reserve nearly 100 year history were posted on Senator Sanderâs webpage earlier this morning.

sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3   (Summarized below)

What was revealed in the audit was startling:

$16,000,000,000,000.00 (TRILLION) had been secretly given out to US banks and corporations and foreign banks everywhere from France to Scotland. From the period between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the worldâs banks, corporations, and governments. The Federal Reserve likes to refer to these secret bailouts as an all-inclusive loan program, but virtually none of the money has been returned and it was loaned out at 0% interest.

Why the Federal Reserve had never been public about this or even informed the United States Congress about the $16 trillion dollar bailout is obvious the American public would have been outraged to find out that the Federal Reserve bailed out foreign banks while Americans were struggling to find jobs. To place $16 trillion into perspective, remember that GDP of the United States is only $14.12 trillion. The entire national debt of the United States government spanning its 200+ year history is only $14.5 trillion.


The budget that is being debated so heavily in Congress and the Senate is only $3.5 trillion. Take all of the outrage and debate over the $1.5 trillion deficit into consideration, and swallow this Red pill: There was no debate about whether $16,000,000,000,000 would be given to failing banks and failing corporations around the world. In late 2008, the TARP Bailout bill was passed and loans of $800 billion were given to failing banks and companies. 
That was a blatant lie considering the fact that Goldman Sachs alone received 814 billion dollars. As is turns out, the Federal Reserve donated $2.5 trillion to Citigroup, while Morgan Stanley received $2.04 trillion. The Royal Bank of Scotland and Deutsche Bank, a German bank, split about a trillion and numerous other banks received hefty chunks of the $16 trillion. ****

 

When you have conservative Republican stalwarts like Jim DeMint(R-SC) and Ron Paul(R-TX) as well as self-identified Democratic socialists like Bernie Sanders all fighting against the Federal Reserve, you know that it is no longer an issue of Right versus Left. When you have every single member of the Republican Party in Congress and progressive Congressmen like Dennis Kucinich sponsoring a bill to audit the Federal Reserve, you realize that the Federal Reserve is an entity onto itself, which has no oversight and no accountability.

 

Americans should be swelled with anger and outrage at the abysmal state of affairs when an unelected group of bankers can create money out of thin air and give it out to megabanks and super-corporations like Halloween candy.

 

The list of institutions which received the most money from the Federal Reserve can be found on page 131 of the GAO Audit and are as follows:

Citigroup: $2.5 trillion($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion* ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)

 

IT WILL BE INTERESTING AS TO HOW MUCH ATTENTION (AS WELL AS THE SLANT) THE MAINSTREAM MEDIA GIVES THIS UNBELIEVABLE POSITION OF OUR GOVERNMENT HAS PLACED US IN WITH NEVER PREVIOUSLY HAVING AN AUDIT OF THE FEDERAL RESERVE.

I AM CONFIDENT THAT WE WILL HEAR SOMETHING LIKE THE FED HAD TO GIVE STIMULUS TO WHOM THE $16 TRILLION WENT TOO BECAUSE IF WE HAD NOT ALLOWED THIS IT WOULD BE THEIR COLLAPSE AND THE OURS.

HAS ANYONE EVER HEARD OF CLOWARD AND PIVEN ECONOMICS? (PARAPHRASING) IT INVOLVES TWO HARVARD PROFESSORS WHOSE BOOK SAID TO CHANGE ANY GOVERNMENTâS ECONOMIC SYSTEM INTO A SOCIALIST ONE, IT SIMPLY DRIVES THEIR ECONOMY INTO THE DITCH THEN THE CITIZENS ALLOW THE GOVERNMENT TO DO WHAT THEY WISH TO SAVE THEM

  

chubbar's picture

You may want to read this report by Rob Kirby that debunks the claim that the FED put out 16 Trillion in stimulus. Not sure what it means other than there was some pretty lazy folks looking at that report.

http://news.goldseek.com/GoldSeek/1317327137.php

 

reload's picture

SG: For fuck sake - give us a rest from this post REPETITION.

falak pema's picture

he can't, he is like a Taliban hooked on heroin trade. Or a WS trader hooked on selling dead cat bounced assets. 

SILVERGEDDON's picture

Hey, blow me. Not every on reads - much less every ZERO HEDGE posed topic. So, for the many, instead of the few, yeah, I'll continue to post this little pearl of banker vomit every fucking where I can. What the fuck have you done today apart from bitching and whining? Knowledge is power - spread it around, for Chrissake!

GCT's picture

For those that do not want to read the whole report pages 131 thru 133 state the total dollars spent and it is indeed 16 trillion.

Ted K's picture

Reggie, I'm white and frankly, I don't give a shit if that's the look you wanna go with, I get the theme----BUT

I'm not too sure if I was an African American if I would want to go with the long spear in the middle of the wilderness.  I mean, other than 3 guys sitting on the curb with malt liquor, there's not too much worse you could go with there.

Just saying....

JR's picture

This comment is an excellent example of how the Liberals have manipulated our civilization to destroy itself, to use the simple minded to help injure the brotherhood of man for their nefarious purposes.

This is one reason I am a hater of Liberalism.  As Taylor Caldwell invariably replied, "I have had painful, scarring, personal experiences with it and it is not just an ideological matter.  As a peaceful person, I am willing to live and let live.  But the Liberal will not, if he can help it, let you live in peace, or coming down to the matter, let you live at all.”

Georgesblog's picture

It just goes to show how much our culture has changed in 5 generations. It used to be, back in the good old Founding Era days, Liberals would have been called Libertines, lawless people. In fact, most of the Founding Fathers would have called them Heathens and hustled them out the door, on the end of a boot. Don't count Thomas Paine as a judge of character. He wore out his welcome in America and jumped to France, just in time to get on board with the Humanist revolution. Hitler called his movement " the exact counterpart  to the French Revolution". We have forgotten the difference between License and Liberty. Having been indoctrinated into a society of subsidy and tribute, people now depend on government to rob their neighbors for their gain. We need to go back and retrace our steps.

http://georgesblogforum.wordpress.com/2011/07/16/unnatural-law-license-v...

Reggie Middleton's picture

That's only if you're ashamed of your heritage, my friend. I'm quite proud of mine, and you'd probably to if you knew more about it. Notice how when I went with the Japanese and Spanish themes, nobody thought of it as condescending, but when I go African with a little extra melanin...

asparagui's picture

DAMNIT REGGIE, WHEN YOU TAKE YOUR SHIRT OFF I CAN'T CONCENTRATE ON THE NUMBERS!

GCT's picture

Actually It is good to see a proud man.  Hell women are doing their best to feminize us.  Sad but true story.  My brother comes over complaining about out his wife spending his money and I told him to grab his balls and talk to her.  His reply floored me,  "She has my balls on the mantle so not alot I can do!!"  I spit my beer on him I was laughing so hard!!!

 

Green Leader's picture

Green Leader's only withstanding concern is whether you are able to do your own landscaping...

Joy on Maui's picture

counterparty risk mitigating prophylactic?  = buying the London Metals Exchange (?)

(in progress as we speak)

PulauHantu29's picture

GS has no risk. It is backed 100% open window by Ben & Timmy (aka the USA taxpayers).

BTW, please pass the KY....

MayIMommaDogFace2theBananaPatch's picture

LMAO!  Reggie carries his balls in a wheelbarrow...

adr's picture

I'll buy yours if you'll buy mine.

Well at Goldman we'll buy all of yours because I'll get mine from a Stein.

Dingleberry's picture

JPM, GS, et al, just devevloped a "poison pill" with this bullshit.....so now YOU go begging to bail THEM out, and they laugh all the way to (their own) bank.  At least that's what my Congresscritter did. And he got re-elected.

LawsofPhysics's picture

Well, either Goldman is correct and everybody else is wrong, or that is one big scalding hot potato that is about to get dropped.

I did it by Occident's picture

More like a W61 Warhead (nuclear) set to go off at any time.

SWRichmond's picture

counterparty risk mitigating prophylactic

Bless you, this one's a keeper.

anony's picture

Love to read this, but the Speartrucker reminds me I gotta do some bow coo serious work on my Abs.

I did it by Occident's picture

yeah, Reggie, you're making all of us feel bad about our own lack of exercise! 

Hook Line and Sphincter's picture

Derivative pecs!

Mngabo Middleton will kick your ass!