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Geithner's Legacy: The "0.2%" Hold $7.8 Trillion, Or 69% Of All Assets; And $212 Trillion Of Derivative Liabilities

Tyler Durden's picture




 

As of this morning Tim Geithner is no longer Treasury Secretary. And while Tim Geithner's reign of clueless pandering to the banks has left the US will absolutely disastrous consequences, an outcome that will become clear in time, the most ruinous of his policies is making the banks which were too big to fail to begin with, so big they can neither fail nor be sued, as the recent fiasco surrounding the exit of Assistant attorney general Lanny Breuer showed. Just how big are these banks? Dallas Fed's Disk Fisher explains.

It is important to have an accurate view of the landscape of banking today in order to understand the impact of this proposal.

 

As of third quarter 2012, there were approximately 5,600 commercial banking organizations in the U.S. The bulk of these—roughly 5,500—were community banks with assets of less than $10 billion. These community-focused organizations accounted for 98.6 percent of all banks but only 12 percent of total industry assets. Another group numbering nearly 70 banking organizations—with assets of between $10 billion and $250 billion—accounted for 1.2 percent of banks, while controlling 19 percent of industry assets. The remaining group, the megabanks—with assets of between $250 billion and $2.3 trillion—was made up of a mere 12 institutions. These dozen behemoths accounted for roughly 0.2 percent of all banks, but they held 69 percent of industry assets.

What does this mean numerically?

As the most recent weekly H.8 statement shows, there was $11.25 trillion in total assets at domestically chartered commercial banks. Which means that just 12 banks now control some $7.76 trillion.

And that is Tim Geithner's true legacy: the "0.2%" now control 69% of everything.

But wait, this is just the asset side. What about the liabilities that these assets support, and especially the over the counter derivative side?

Well, according to the latest Q3 OCC report, the total amount of derivative exposure at just the Top 4 banks is now some $212 trillion, or 93.2% of the total $227 trillion in outstanding US derivatives.

 

To summarize: the top 12 banks control 69% of all financial assets, some $7.8 trillion yet just the top 4 are responsible for 93.2% of all derivative exposure.

A job well done, Mr Geithner.

And now, can you please head the Federal Reserve when Bernanke retires in one year to finish your job of completely dismantling these here United States and destroying the country's middle class?

 

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Sat, 01/26/2013 - 14:55 | 3187922 mikla
mikla's picture

That's what you get when there is no accounting, no reserve requirements, and banks merely print money to seize assets.

Sat, 01/26/2013 - 15:00 | 3187930 Death and Gravity
Death and Gravity's picture

93% of all derivative liabilities - doesn't this mean that as soon as the shtf, these people will be cut off from their debt?

Hold the phone!

Sat, 01/26/2013 - 15:05 | 3187936 Kitler
Kitler's picture

No no no... it doesn't work like that.

They just get access to even more free money. After all the (shit) show must go on, bonuses to pay, politicians to buy... I'm sure you are getting the idea.

Sat, 01/26/2013 - 17:19 | 3188105 SafelyGraze
SafelyGraze's picture

Geithner's Legacy: The "0.2%" Hold $7.8 Trillion, Or 69% Of All Assets; And $212 Trillion Of Derivative Liabilities

bless his heart! http://www.youtube.com/watch?v=R3h2mOgCaiQ

 

Sat, 01/26/2013 - 18:18 | 3188190 walküre
walküre's picture

Well then the objective is to expose the lies, uncover the truth and spread the word.

0.2% won't be able to hold out for long when more and more of 99.8% ask questions and want to see some semblance of fairness and lawfulness restored.

Who remembers the names of the French aristocracy today that ended very publicly on the proverbial chopping block? See, in a couple hundred years nobody will remember the names of the current crop of crooks either but the next 200 years will potentially see a sharp correction from this unsustainable financial path we're on and give next generations a chance to get it right.

Sat, 01/26/2013 - 19:23 | 3188309 Fredo Corleone
Fredo Corleone's picture

“I believe that banking institutions are more dangerous to our liberties than standing armies.”

Thomas Jefferson.

Sun, 01/27/2013 - 04:51 | 3188822 Boris Alatovkrap
Boris Alatovkrap's picture

"If people is see how bank is screw people, something is bad happen tomorrow"

Henry T. Ford

Sun, 01/27/2013 - 12:06 | 3189069 Urban Roman
Urban Roman's picture

Long rope & pitchforks

Sat, 01/26/2013 - 15:20 | 3187943 mikla
mikla's picture

Liabilities don't exist.

(1) Current numbers are "fictitious" (they do not account for risk)

(2) Realized liabilities can't happen until there is accounting, and we don't do that anymore.

(3) Should realized liabilities occur, they will be transferred to the taxpayer, or a "good-bank/bad-bank" scenario (also transfering to the taxpayer), with the "favoured-elite" keeping their bonuses and running the "good-bank".

Last, and most important:

(4) The concept of "liabilities" is only important for the sake of "increased-leverage", where "more liabilities" are "Good".  That's *how* banks print-and-seize-assets.

For "normal" people, liabilities are "bad".  Not for banks.  More liabilities means more leverage, more power, more influence, and (most importantly) more ability to "skim" the cash flows for bonuses and secondary self-enrichment (e.g., trading insider info, influencing businesses and industries).

Remember, at a "bank", your demand-deposit account ("checking-account") is recorded as a "bank liability".  They are "liable" to give your cash back to you (it's your checking account).  It is not their money.  It never was.  But, they transferred that cash to their day-trading operations, and that cash isn't there (it's a liability to the bank for accounting purposes).  Banks want even more liabilities from even more people so they can, "lever-up".

Liabilities are Good (for banks, not for you).  You can't "lever-up".

Sat, 01/26/2013 - 19:24 | 3188310 Stuntgirl
Stuntgirl's picture

You couldn't make this shit up.

Sun, 01/27/2013 - 04:54 | 3188823 Boris Alatovkrap
Boris Alatovkrap's picture

Boris disagree, most "this sh¡t" is looking pretty much man made.

Sun, 01/27/2013 - 10:28 | 3188973 old naughty
old naughty's picture

Not-man made.

Sat, 01/26/2013 - 16:56 | 3188067 unrulian
unrulian's picture

i'd argue that the 1% only hold 1% of the guns...which leads to the obvious question...who hold the rest?

Sat, 01/26/2013 - 15:50 | 3188000 resurger
resurger's picture

and when the shtf, they mark all their assets to face value according to FASB, IFRS ... they all part of the ponzi .. there is no escape...

the biggest crook of them all is ISDA, good luck on having a credit event (they will have one , once everyone is short the Credit Spreads)

Fuck those suckers, +5 ZH

Sun, 01/27/2013 - 04:54 | 3188824 Boris Alatovkrap
Boris Alatovkrap's picture

SHTF = BTFD?

Please is help Boris with esoteric acrymonies!

Sat, 01/26/2013 - 16:04 | 3188012 Dre4dwolf
Dre4dwolf's picture

Thats the fucking problem, these banks take no risk on loans anymore, THEY ARE PAID TO LOSE MONEY BY THE FEDERAL RESERVE.

SO the banks just exchange worthless CREDIT for ASSETS, the end - result

ALL REAL-ESTATE

ALL CARS

ALL BUSINESSES

ALL CITIES AND MUNICIPALITIES 

WILL BE OWNED BY BANKS, AND SOCIETY WILL BE RENTING ITSELF FROM BANKS.

 

ITS IDIOTIC TO SAY THE LEAST ITS GOING TO BECOME ANARCHY AND PEOPLE WILL JUST START SQUATING IN ALL THE FORCLOSED PROPERTIES (WHICH IS GOOD BECAUSE ATLEAT IT WILL GO TO USE).

 

Banks SUCK BALLZ

Sun, 01/27/2013 - 19:04 | 3189630 css1971
css1971's picture

What do you mean "WILL BE"? That's exactly how it works now. You rent your money from banks. So they get N% of everything.

Sun, 01/27/2013 - 12:47 | 3189118 Remington IV
Remington IV's picture

It's like living in Chimp City ... Geithner's the mayor

Sat, 01/26/2013 - 14:54 | 3187923 q99x2
q99x2's picture

They owe me at least another $7,800 punk M'Fers.

Sat, 01/26/2013 - 14:55 | 3187925 THX 1178
THX 1178's picture

<----Banking cartel

<----Socialism

Sat, 01/26/2013 - 15:38 | 3187980 CH1
CH1's picture

What gets me is not concentration, per se, but the fact that the scam is worshiped as a "capitalist system," or "free markets" or "our way of life," or as "democracy."

It's simply a mass fraud, pulled off on hundreds of millions at once... people who can't bear to see it, because they'd have to admit that they got suckered.

Sat, 01/26/2013 - 15:51 | 3188001 THX 1178
THX 1178's picture

But then again it was the free markets of the late 1800's early 1900's that generated all the banks and their Federal Reserve. The free market created the cartels. Hmmm.... how do we sort this one out? Do we acknowlege that free market capitalism is a monopoly/cartel generating engine? If we do... then what? I understand what you're saying... we were all complicit in our own enslavement. Its quite a pickle.

Sat, 01/26/2013 - 16:26 | 3188033 walküre
walküre's picture

Free markets of late 1800's early 1900's were established by who had the biggest shot gun.

Then came the pillage and now the enslavement.

What is a free market anyway?

Sat, 01/26/2013 - 16:49 | 3188058 THX 1178
THX 1178's picture

Biggest shotgun? A free market is survival of the fittest. Forming a cartel makes you more fit than competing. Basic economics.

Sat, 01/26/2013 - 18:22 | 3188192 walküre
walküre's picture

I think we're talking about two different things. "Free" market is less regulated by government and therefore giving all participants a better chance to compete on a level playing field. Poltics and lobbyism brings regulations and distorts the "free" markets.

Sat, 01/26/2013 - 18:33 | 3188217 THX 1178
THX 1178's picture

Well, no, because Free markets necessarily generate monopolies and cartels. So early in the game, yes the playing field is equal, or relativesly so, but in the long run, cartels and monopolies emerge. Monopolies like monsanto and debeers. Cartels like the Private banking cartel... LIBORgate shit... and the Military industrila complex, which is a defense cartel. So yes, on paper free markets give all participants an equal chance, and in real likfe in the short run, they do. But not in real life in the long run. That is where we are-- real life. This is when we are-- the long run. This is what REAL LIFE free markets do, not the ones on paper.

Sat, 01/26/2013 - 18:49 | 3188247 walküre
walküre's picture

the pen is mighter than the sword

I think is what you're describing.

Sat, 01/26/2013 - 21:05 | 3188456 THX 1178
THX 1178's picture

no

Sat, 01/26/2013 - 21:43 | 3188524 Totentänzerlied
Totentänzerlied's picture

"Well, no, because Free markets necessarily generate monopolies and cartels."

Yeah, uh, you're a shill.

Sat, 01/26/2013 - 19:34 | 3188324 CH1
CH1's picture

Free markets necessarily generate monopolies and cartels.

Y'all must have learnt that part in a gubbermint school!

Markets kill monopolies, states support them.

Free markets are inherently anti-state and anti-monopoly - that's why they are always placed in chains!

Sat, 01/26/2013 - 21:06 | 3188462 THX 1178
THX 1178's picture

No, I didn't learn that in school. I learned it from private independent research. And you must understand the difference between ON PAPER and IN REAL LIFE. ON paper, free markets don't allow monopolies... in real life they crop up PDQ. Same with cartels.

Sat, 01/26/2013 - 21:44 | 3188526 Totentänzerlied
Totentänzerlied's picture

You've been researching things which never happened? Do you consult for the "Ancient Aliens" production staff?

Sat, 01/26/2013 - 23:02 | 3188636 CH1
CH1's picture

Monopolies: The Fed, electric utilities. phone utilities, cable TV, police departmnts, legal jurisdictions.

What is it that they all have in common: Open competition or government's violent exclusion of competition?

Sun, 01/27/2013 - 12:53 | 3189124 ElTerco
ElTerco's picture

Exactly the opposite.  The gub'ment taught *you* that monopolies can't form in a free market.

In reality, there is always a small fraction of individuals that accumulate more than they produce, by hook or by crook, and the wealth and power accumulate with those people until the country collapses.

Sat, 01/26/2013 - 20:17 | 3188376 Radical Marijuana
Radical Marijuana's picture

The bigger context is as I already replied below, "free markets" in organized crime take control over "free markets" that are supposed to be under the rule of law. The best organized gangs of criminals take control over the government, and that is, paradoxically, a higher order kind of "free market," namely, a free market in crime, like there was a free market in militarism, where there are no rules, and no referees.

What needs to be understood is the paradoxical ways that human realities are ALWAYS organized lies, operating organized robberies. Governments were always the best organized territorial gangsters, and behind them were the international banksters, as even better organized gangsters.

My view is that power is always distributed, because everybody has some power to rob and to kill. Those powers got assembled and channelled into states with governments, due to the ways that the history of militarism made War King. That then continued to develop in ways that made Fraud King. The biggest banks are now within that system of Fraud Kings. Those banks effectively control the power of We the People, to rob, and to kill to back up that power to rob. The systems of constitutional checks and balances have broken down. The power to make money out of nothing, as debts, was captured by the private banks, which were then able to become more wealthy, and more powerful, and more able to engage in frauds and robberies, because their frauds are backed up by the power of governments.

However, that is NOT being effectively resisted because almost all the oppostion is controlled to continue to promote the same old false fundamental dichotomies, and associated impossible ideals, as somehow being able to provide real solutions. One of the reasons that the USA has failed was that too many of the People were brainwashed to believe in false fundamental dichotomies, and the corresponding impossible ideals. There are no easy solutions, but to muddle through the madness that money is backed by murder, and those who were the best at deceits and destruction in the past now dominate the established systems ... That continues to be the case, despite the debt slavery, backed by wars based on deceits, is more and more becoming debt insanity, backed by the threats of even more insane wars.

Sat, 01/26/2013 - 18:57 | 3188265 legorf
legorf's picture

I'm not sure I can agree with that (well I certainly do for the lobbyist part)

 

A free market is one where regulations allow other participants to enter one market and compete on a level playing field or to reduce the pricing power of natural monopolies. That doesn't mean less regulation ... less regulations may, or may not lead to free markets.

 

If you have a market without regulations or bad regulations, what you will get is the strongest will use all of his power to eliminate the competition and not allow potential competitors to enter the market. Not only natural monopolies will benefit from this, but unatural monopolies are likely to emerge too.

 

You cannot have a free market without regulations. Therefore, the question is, does the regulation in place favors more competition or less?  Does the regulation in place favors some individuals/corporations at the expense of others? I think we all all know the answer to this simple question right now.

 

Government, in itself, is not good or bad. Actually, you need the government, to some extent. Otherwise, you live within a tribal-like state. Just go to Africa to convince yourself. Thus, a more accurate statement would be: a government instituting bad regulations is a bad government. As simple as that.

Sat, 01/26/2013 - 19:35 | 3188327 CH1
CH1's picture

Government, in itself, is not good or bad.

Government is organized theft. Pretty hard to not call that "bad."

Sat, 01/26/2013 - 21:03 | 3188450 legorf
legorf's picture

I respect your opinion but I disagree.

 

The reason why a governement should exist is to tend towards equal chances for everybody from the start. Then, let them run, may the best win if they play by the rules.

I sincerely invite you to visit some countries where the government is non-existent and see what happens there. Historically speaking and relatively to other countries , the USA has always put up a strong law-enforcing government which regulations were aiming at encouraging entrepreuneurship and free markets. I'm not saying it is perfect, I'm saying that relatively speaking, they have done a better job on that front then most other countries in the world.

Now, too much government is bad, too less is bad too. Saying otherwise doesn't fit with historical lessons humans should have learned by now ...

You may disagree with Obama, I do. That doesn't mean no government at all is better. I disagree with almost all governments on this planet, just normal. That's probably only beacause I'm not THE President/Prime Minister/Dictator of these countries :P. Like every retard on this planet (99.9% of the population), I think I would do better than they do.

As for theft, I guess when you look at the absolute numbers, you are right. But we all live it what we call "the world" . On that front, you have to compare with other countries. Thus I suggest you have a look at this table from the OECD.

http://stats.oecd.org/Index.aspx?QueryId=21699#

At 25% of GDP in 2011, the US tax rates are much lower than almost anywhere else in the world. Agreed, not all the countries are included in this table but I don't feel like searching world databases simply to prove my point on a blog ...

Thus, if the US government is stealing your money, it is stealing much less than other governments around the world. But then, these are 2011 numbers. We'll see how it evolves in 2013.

Sun, 01/27/2013 - 15:53 | 3189399 CH1
CH1's picture

legorf: I appreciate the civil discourse.

I have visited dozens of countries, on several continents, and have spent extended periods in several.

The essential operation of government is to forcibly remove production from producers. If I do that to you, I am (fairly) called a criminal. I refuse to grant a separate and higher morality to a group of politicians - known moral inferiors - not matter how many creative uses of language their minions create.

Taking money by force is immoral. Period. Government is therefore organized crime. All arguments to the contrary must evade, insult, ridicule, or otherwise dishonestly side-step this basic fact.

If you want to cooperate with organized crime, that is, of course, your choice. But if you force me to comply, you become a thug.

These facts can either be honestly accepted or dishonestly evaded.

Peace.

Sat, 01/26/2013 - 19:55 | 3188331 Radical Marijuana
Radical Marijuana's picture

"Free market capitalism is" NOT "a monopoly/cartel generating engine!"

It was the application of the methods of organized crime to the political processes that transformed the system of relative free market capitalism into being a runaway fascist plutocracy juggernaut.

Politicians were systematically bribed and intimidated, and assassinated if they refused to become the banksters' puppets. The success from doing that became a vicious spiral, whereby profits from fraud were reinvested in more frauds. Control over the mass media was purchased, and then the most scientific brainwashing that money could buy was perfected and used against the American people. The monopoly/cartel was built by covert organized crime, applied within the political processes for more than a Century. The bread and circuses mentality of the masses of muppets, resulting in enough of them being fooled to vote for puppet politicians, was the result of the triumphs of dishonesty, backed by violence. It was NOT the result of "free market capitalism." Fascist plutocracy is what we get AFTER we add fraud and murder to "free market capitalism," since fraud and murder then are able to corrupt everything, as they covertly take control.

It is easy to say that "we are complicit in our own enslavement." That is superficially true. However, those who were not complicit were discredited and destroyed, and therefore, the current slave society is one that is made up of those who survived, by adapting to become "successful" within their slavery.

P.S. The single simplest symbol, and most extreme particular example of that process was taking the single best plant for people, hemp, and rebranding it as "marijuana that is almost as bad as murder" and thereby criminalizing the cultivation of all cannabis. Remember that the first American flag, and the Bill of Rights, were both made from hemp, and one has an illustration of what happens when the fascist plutocracy, monopoly/cartel system, takes over society through triumphantly getting away with huge lies, backed by lots of violence, thereby forcing everyone else to adapt to live inside of that established slave society.

There are deeper reasons to understand WHY the best organized criminals, the biggest gangsters, the banksters, WERE able to take control over the government of the USA, and thereby the USA end up becoming a system of debt slavery, backed by wars based on deceits. The "pickle" we are in was due to there being no practical way to prevent the best organized gangs of criminals from being able to gradually apply their methods to take control of the government. We are NOW in a situation where more than 90% of all politicians are puppets, and more than 90% of the people are muppets. However, that took a long time to gradually develop! It was not due to "free market capitalism," it was due to the bigger context of human realities being organized lies, operating organized robberies.

What was done to the natives of North America, and then the African Americans, is now being done to the white middle classes of North America. There are millions and millions of individual battles, inside the context of an overall war that the vast majority of the American people are losing. What they need is a drastic change in their perception of militarism, and the concepts of death control, in order that they can understand how the debt control, or money system, ended up producing a handful of enormous banks that own more than half of everything, and are effectively above the law, while they can continue to gamble with more money made out of nothing, which approaches the magnitude of $QUADRILLIONS!

Sat, 01/26/2013 - 14:55 | 3187926 williambanzai7
williambanzai7's picture

SIPHONAPTERA FINANSUS

Sat, 01/26/2013 - 15:31 | 3187973 Xibalba
Xibalba's picture

don't insult that flea

Sat, 01/26/2013 - 15:40 | 3187983 wee-weed up
wee-weed up's picture

You need to show him sucking our blood.

Sat, 01/26/2013 - 16:49 | 3188055 joego1
joego1's picture

actually I think he is more of a tick by the way he embeds himself.

Sat, 01/26/2013 - 16:57 | 3188072 unrulian
unrulian's picture

I'd say virus and we've all been infected

Sat, 01/26/2013 - 17:32 | 3188124 Yen Cross
Yen Cross's picture

 Timmah the  " Bed Bug" aka "Sand flea" Geithner.

Sat, 01/26/2013 - 18:50 | 3188249 walküre
walküre's picture

upside down like our nation's finances.

fuck you timmay!

Sat, 01/26/2013 - 15:01 | 3187929 Pure Evil
Pure Evil's picture

I guess when all the assets reside in the megabanks it'll make it that much easier for the US Gov to steal the rest of the middle classes savings.

Sat, 01/26/2013 - 15:01 | 3187931 BurningFuld
BurningFuld's picture

Since the top 4 Banks have 93% of derivatives it would be a perfect time to set these four aside and dismantle them. Easy as pie.

Sat, 01/26/2013 - 16:13 | 3188021 AgAu_man
AgAu_man's picture

Kidos to ALL the above blog postings.  Spot on, friends!

Just remembered somebody's posting from some days ago (last week?), where it was pointed out the "Derivaties" are not Assets" or even Financial Intruments in the traditional sense of the word.  Rather, they are 100% PURE GAMBLING.  THEY ARE BOOKIE BETS!

Bets should be segregated and firewalled from the rest of the financial and investments -- by LAW! 

I say:  No more coupling of Tera-Betting to stocks, bonds and (fiat) money!  Which itself is leveraged on real, primary assets and (promise of) work, goods & services.

3 Predictions: 

     1. When TSHTF, it will be due to the Tera-$ size of the Derivaties market, dominated by the TBTF gorillas.  It'll be a sh!t-storm of their own making & baking.

     2. When TSHTF, the Elite/TBTF are guaranteed to re-direct the root-cause away from themselves and toward the "useful fools":  Foreign powers.  A very specific (Middle-East) foreign power... I'm guessing: Iran.  A la TV series Last Resort.

     3. When TSHTF, the Elite/TBTF and those on the GravyTrain.Gov will not want the populace to topple them -- the real culprits of systemic failure!  They will not want 'We The People' to physically revert the hijacked-Republic-cum-rotten-Empire back into the Constitutional Republic.  They KNOW what's coming, so they want to literally disarm the populace beforehand.

Sat, 01/26/2013 - 20:31 | 3188402 slightlyskeptical
slightlyskeptical's picture

I think they are indeed like the bookies.Tthey take bets on both sides and make their vig from both sides. For every buyer there is a seller, so don't assume becasue these derivates exist that they net out at much more than zero. One institution's gain will indeed be anothers loss.

“It's only when the tide goes out that you learn who's been swimming naked.”

Warren Buffet

Sat, 01/26/2013 - 15:04 | 3187939 Jack Burton
Jack Burton's picture

After the 2008 crisis the Fed moved to undertake the greatest wealth transfer in American history via ZIRP, Bank Bailouts, Money printing and market manipulations. They succeeded spectacularly!

America now resembles Russia after the US Chicago Economists got done directing the sale of Soviet State assets to a select elite. A select favored few have it all now, and some call it a free market selecting the hardest working and most productive as the winners. Come on! Those days are over, our current system is a manipulative feeding frenzy carried out from the Fed for the benefit of the connected elites. The results are all the evidence you need.

This is not capitalism or a free market.

Sat, 01/26/2013 - 15:15 | 3187952 booboo
booboo's picture

Well now, it's a "free market" for some folks and I don't think you could convince them other wise. See, therein lies the problem, perspective, they don't think like you or me, hence Lloyd Blankfeins "doing gods work" sentiment. Staying clear of sociopaths is not so easy anymore since they have filled the halls of power and this is why they only understand one thing and one thing only, brute fucking force delivered at the end of a gun barrel when they send their minions to reap what is left of your earning capacity which will be your living body.

Sat, 01/26/2013 - 15:42 | 3187976 Beam Me Up Scotty
Beam Me Up Scotty's picture

"brute fucking force delivered at the end of a gun barrel when they send their minions to reap what is left of your earning capacity which will be your living body"

That will happen when the government is consuming 100% of everything everyone earns.  Those who are left in the workforce are already working 6 days out of 10 for the government when you factor in income taxes, sales taxes, property taxes, gas taxes, and the other plethora of government fees.  Its actually probably more like 7 days out of 10.  When it goes to 10 days out of 10 you are working for the government, what are they going to do to generate MORE revenue?  Whip you even harder to make you work faster?

And we "think" this is the land of the free.....More like the home of the slaves.

Actually, an after thought...., the government is already consuming OVER 100% of everything everyone earns.  It needs to print another trillion+ on top of that.

Sat, 01/26/2013 - 15:46 | 3187993 centerline
centerline's picture

Unfortunately, there is more to take.  Which means more time on the clock.  More games.  What is impossible to tell is where the tipping point exists.  It is out there though.  The more this theater of the absurd continues, the more unstable everything becomes.

I still like to use the analogy of cash flow as opposed to stock.  It is when the cash flow siezes up that the shit hits the fan.  Same thing will happen with supply chains at some point.  

Sat, 01/26/2013 - 16:20 | 3188026 Totentänzerlied
Totentänzerlied's picture

"the government is already consuming OVER 100% of everything everyone earns."

Anything to grow the total amount of debt owned by the Fed.

It's.

All.

100%.

By.

Design.

Sat, 01/26/2013 - 16:26 | 3188032 tip e. canoe
tip e. canoe's picture

just wait when they untangle the deeds from all those MBS's they've been collecting.

Sat, 01/26/2013 - 21:22 | 3188489 pods
pods's picture

They will be like little kids trading baseball cards.
And just like baseball cards, they will find out that alot of them have the same (unique) cards.

pods 

Sun, 01/27/2013 - 01:44 | 3188765 prains
prains's picture

there is no such thing as "free"

Sat, 01/26/2013 - 15:06 | 3187941 gould's fisker
gould&#039;s fisker's picture

I'm sure glad financial assets are centralized and inter-connected, it worked out so well last time.  Talk about a complete lack of critical analysis and follow through--welcome to the post-modern world where we think that we can figure it all out or just make shit up as we please.  Seems to be working out very well.

Sat, 01/26/2013 - 15:14 | 3187949 Fix It Again Timmy
Fix It Again Timmy's picture

And yet you could put Tim or any other fraudster in front of Congress or in front of 100,000 Americans and within 30 minutes, the Congress and crowds would be cheering and saying, Yes, Yes, You're absolutely right, Oh Great One!  And that is because they have no KNOWLEDGE!

Knowledge makes a man unfit to be a slave. ?– Frederick Douglass

Sat, 01/26/2013 - 16:14 | 3188024 klockwerks
klockwerks's picture

That is the reason why big brother needs to control the internet as some have way to much knowledge so it must be taken away.Watch for it

Sat, 01/26/2013 - 15:14 | 3187950 ptoemmes
ptoemmes's picture

...neither fail nor be sued nor have senior officers prosecuted much less even indicted,...

I fixed it up for you.

Sat, 01/26/2013 - 15:20 | 3187960 Never One Roach
Never One Roach's picture

No wonder my Banker is always so Happy.

Sat, 01/26/2013 - 15:30 | 3187963 Aurora Ex Machina
Aurora Ex Machina's picture

Pay attention...

Belgian MP Laurant Louis goes postal over Mali & Syria [use Captions, makes Nigel Farange look tame]

Britam, Halliburton constractor, hacked with Qatar emails suggesting faking evidence of chemical weapons usage [Emails only suggest offer via Qatar, although "with US approval" - contains many authentic passport scans, as well as passing technical legitimacy for the internal emails]

Anonymous claim to have "warheads" of incriminating data on DoJ Judges [although many claim false flag over "cyber war" legislation soon to be introduced, given that CNN and Fox News are running with it, but curiously are ignoring the Britam leak]

 

~

All of these are 2 days old.

Sat, 01/26/2013 - 15:44 | 3187988 CH1
CH1's picture

Anonymous claim to have "warheads" of incriminating data on DoJ Judges

No more Wikileaks-style teases. If you have the shit, release it. The last battle for control of the Internet is almost lost anyway: The Internet Is Being Slaughtered In The Back Room

Sat, 01/26/2013 - 15:51 | 3187998 Aurora Ex Machina
Aurora Ex Machina's picture

It is known.

4chan archived thread containing a lot of the passport scans [including Ukranians] from Britam

However, the whole Aaron Swartz suicide has irked a lot more than the usual script-kiddies. 

 

We'll see on Monday if the Anon thing is just a smoke-screen.

 

 

Cryptome showing LulSec "Sabu" still fishing for the FBI

Sat, 01/26/2013 - 16:01 | 3188010 CH1
CH1's picture

However, the whole Aaron Swartz suicide has irked a lot more than the usual script-kiddies. 

Yeah, myself included.

We'll see on Monday if the Anon thing is just a smoke-screen.

Fair enough.

Peace.

Sat, 01/26/2013 - 16:21 | 3188018 Totentänzerlied
Totentänzerlied's picture

What are they gonna? Try themselves? You and I both know the justice system is a giant fraternity with no rational interest in "self-recrimination" and takes greats pains to give free passes to its own. In other words, nothing will come of this because judges are effectively above the law and the legal system is a bad ***damn joke.

Sat, 01/26/2013 - 15:28 | 3187966 suckerfishzilla
suckerfishzilla's picture

Resistance is not futile.  Silver bitchez.

Sat, 01/26/2013 - 15:28 | 3187968 They Tried to S...
They Tried to Steal My Gold's picture

This has taken Reward the Incompetent to whole new level.... 

 

A Monopoly you say? "TO BIG TO DE-MONOPOLIZE"

 

Jim Rogers: We're taking the money away from the competent people and giving it to the imcompetent people to reinvest again.....

Sat, 01/26/2013 - 15:28 | 3187969 news printer
news printer's picture

Army of Mali after training ready for offensive

http://goo.gl/KSy5T

Enjoy

Sat, 01/26/2013 - 15:43 | 3187975 Aurora Ex Machina
Aurora Ex Machina's picture

Been on LiveLeak for two weeks now - actually a common training tactic for Operations, the joke of "poor black Africans" is only made by those ignorant of western trainers btw.

French Air Strike

Results of one of those air strikes [warning: crispy bodies]

Mali rebels split; offer peace talks [surprise: The Tuaregs against the Salafi Jihadists. No-one, just no-one, saw that one coming]

 

Bit late to the game, old chap.

 

Oh, and the joke is in the title: OPERATION FLINTLOCK.

 

 

p.s. www.africom.mil is down at this time. Oops. http://www.downforeveryoneorjustme.com/www.africom.mil

Sat, 01/26/2013 - 16:19 | 3188025 news printer
news printer's picture

No wonder the islamist took over? 2/3 of the country

Sat, 01/26/2013 - 15:42 | 3187985 Miramanee
Miramanee's picture

RE: "...clueless pandering..." NOT clueless at all!!!!! Very conscious; a conscious effort to create as much "wealth" as is possible, so that if/when things fall apart, there is a resource buffer that will keep the USA from falling apart too quickly.

Sat, 01/26/2013 - 15:45 | 3187991 rwe2late
rwe2late's picture

 Those numbers cannot be correct.

Why, just a few days ago, the Geithner legacy was discussed on the PBS News Hour.  

Mark Shields made no mention of any bank handouts other than the $700 billion TARP (under Bush, and which we all are told was mostly paid back).

Could PBS be just another fount of disinformation?

I am appalled.

 

Sat, 01/26/2013 - 15:51 | 3187994 falak pema
falak pema's picture

well if it goes bust,  it'll go with a mega bang! 

70% of assets; 0.2% of holders and >200 T of incestuous electronic derivative assets that mean NOTHING in the real world but EVERYTHING in the Oligarchy financialista world as its the teat on which they suck; this cancerous derivative bubble! 

Geithner will say for posterity if it blows up  : I told them, I told them, but they wouldn't listen, so I did my best!

Them being his buddies in GS, scions of the Clinton/GWB age of deregulated WS initiated by you know whoooo.

Sat, 01/26/2013 - 15:45 | 3187995 resurger
resurger's picture

All hail the ESF & the OCC, no wonder when you issue swaps (pay floating and recieve fixed) you need to keep the ZIRP near zero or below.

Sat, 01/26/2013 - 16:00 | 3188006 ArkansasAngie
ArkansasAngie's picture

By pumping in newly printed money into banks that grows the pie and dilutes everybody but themselves ... thereby increasing their control at the same time. 

Moral hazard cannot be denied forever.

Focus like a lazer beam on the criminals who are running our government.

Sat, 01/26/2013 - 16:04 | 3188013 AldoHux_IV
AldoHux_IV's picture

The real stupid thing about this all is that China adopted a lot of this behavior as well-- not too smart and definitely will be worse than any opium epidemic.

This is what a leveraged buyout looks from a macro perspective, and a very dangerous and malicious one at that-- you can't hide the fraud and conspiracy much longer and these bankers amd economists will have nowhere to hide because the politicians will be their first line of defense and an easy one to mow down.

Sat, 01/26/2013 - 16:22 | 3188022 earleflorida
earleflorida's picture

'The land of Mao and Lenin under the auspices of Marx's(TM)'

"911" .... for[e]war[n]'d

Sat, 01/26/2013 - 16:24 | 3188030 outofideas
outofideas's picture

On one hand they may "own" everything, but can they control what they own?  Don't we always say you only own what you can touch and defend with rifle?  When push comes to shove and people had enough of it, the banks might find themselves owning bits of paper claim ownership of real assets, but they'll have a hard time actually controlling said asset.

Sat, 01/26/2013 - 16:31 | 3188037 walküre
Sat, 01/26/2013 - 16:33 | 3188038 Bunga Bunga
Bunga Bunga's picture

and Faber said Timmy was OK....

Sat, 01/26/2013 - 16:34 | 3188042 Spectre
Spectre's picture
  • I'm in hopes during the coming days of recollection, that angered, homeless and starving people in the streets go find "Tim Geithner" and give him justice.
Sat, 01/26/2013 - 16:35 | 3188043 Atomizer
Atomizer's picture

Turbo Tim falls under the illegal guideline called, ”non-cash goodwill impairment charge”.

Caterpillar uncovers internal fraud

January 22, 2013

Caterpillar is carrying out an internal investigation after claims of misconduct at one of its recently acquired companies. The mining machinery manufacturer stated that it "has uncovered deliberate, multi-year, coordinated accounting misconduct concealed" at the recently acquired ERA Mining Machinery company's subsidiary Zhengzhou Siwei Mechanical & Electrical Manufacturing, in China. "Caterpillar’s investigation determined several Siwei senior managers engaged in deliberate misconduct beginning several years prior to Caterpillar’s acquisition of Siwei," it said. It went on to stress that "the misconduct at issue commenced at Siwei well in advance of Caterpillar’s acquisition. We believe it was perpetrated without the knowledge of any Caterpillar employee who did not come over to Caterpillar as part of the Siwei acquisition". Due to the fraud at Siwei, Caterpillar expects to suffer a "non-cash goodwill impairment charge of approximately $580 million, or $0.87 per share, in the fourth quarter of 2012". Following the investigation Cat removed several senior managers at the company, installing its own new leadership team.

 

http://www.mementosecurity.com/Forums/Bank-Fraud-Forum/Blog.aspx

Sat, 01/26/2013 - 16:38 | 3188044 CheapBastard
CheapBastard's picture

"Why steal less.....when you can steal more....lots more...."

 

Is that what his exit speech said?

Sat, 01/26/2013 - 16:52 | 3188062 loveyajimbo
loveyajimbo's picture

Please forward this site to your congressmen and senators...

 

http://www.westernjournalism.com/maj-gen-paul-vallely-on-obamas-forged-b...

Sat, 01/26/2013 - 16:57 | 3188069 joego1
joego1's picture

To bad someone couldn't hack all that derivative shit and make it squirt out checks to the 99% for  a while. Let Dimon wonder what the fuck went wrong with the jet engine he built.

Sat, 01/26/2013 - 17:34 | 3188116 Yen Cross
Yen Cross's picture

 Geithner's Legacy?   Are you hung over Tyler?  The headline should read-  "Geithners Travesties": (ad hoc) the chart porn.

 Excellent post Tyler ;-)

Sat, 01/26/2013 - 17:50 | 3188141 Hulk
Hulk's picture

2012 and 2013 will usher in the end game (or the scariest presentation ever)

http://www.zerohedge.com/news/big-reset-2012-and-2013-will-usher-end-sca...

 

Hmm, didn't the oldest bank in Europe just get toasted due to derivatives???

Raoul Pal is starting to look like  a genius...

Sat, 01/26/2013 - 18:07 | 3188171 devo
devo's picture

I'm not convinced the FED is buying 40 tril per month like they say. Pretty sure they're just saying that to get money flowing. Haven't checked the balance sheet in a few months, but last I did check it wasn't growing despite all the supposed purchasing. This could be something the doomsdayers are missing...the power of talking the market into a desired action.

I mean, it looks like end game to me too, but I like to keep an open mind.

Sat, 01/26/2013 - 18:21 | 3188191 Yen Cross
Yen Cross's picture

Timmahs bending over for another Bernanke < injection< Nice work Billy#7.

Sat, 01/26/2013 - 18:32 | 3188214 Bicycle Repairman
Bicycle Repairman's picture

Let's just cut to the chase.  The 0.2% own 100% of the power and did before Geithner came along.

Sat, 01/26/2013 - 18:32 | 3188215 Bicycle Repairman
Bicycle Repairman's picture

Let's just cut to the chase.  The 0.2% own 100% of the power and did before Geithner came along.

Sat, 01/26/2013 - 18:54 | 3188257 evernewecon
evernewecon's picture

 

 

 

 

 

Transfer of liabilities to the taxpayers might be 

challengeable under different circumstances, with

right arguments.

 

Derivatives based on legally dubious foundations

may not be enforceable.

 

The government's supposed to be protecting

depositors, not bank holding companies.

 

When a bank holding company goes bankrupt it's like

a person falling off a cliff.  After the first

90 feet it might as well be a mile down.

 

The banks should have been recapped, taken 

control of.

 

I personally don't consider offering ever more

protection for ever greater risk with ever less

reserve coverage for ever greater bonuses a

legitimate business absent someone checking 

net equity at risk, exactly in the manner of 

your typical household discount broker.

 

So I would've simply annulled the whole lot of the 

derivatives if they were to impact the taxpayer

even only indirectly economically.

 

Somewhere within any of these suggested right

steps is where a democratic leadership might

get control.

 

People should learn not to do business with

shady banks.

Sat, 01/26/2013 - 19:01 | 3188276 pragmatic hobo
pragmatic hobo's picture

geithner, ... wasn't this the guy who literally allowed the credit bubble to form? if he didn't, then doesn't it only point to the fact that he must be the most inept regulator ever? either way how did he ever become treasury secretary of biggest economy in the world? what does that say about obama administration?

Sat, 01/26/2013 - 19:14 | 3188297 Tsar Pointless
Tsar Pointless's picture

Just think of how bad it would be if a class war were being waged by the rich against the rest of us.

Good thing there isn't one.

Yes, that is sarcasm.

Sat, 01/26/2013 - 21:00 | 3188440 All Out Of Bubblegum
All Out Of Bubblegum's picture

I don't see what the problem is. Timmy was hired by bank.gov to hasten the demise of its antique Federal Reserve Note scheme in favor of a more modern, streamlined scheme.

Mission accomplished.

Sat, 01/26/2013 - 22:18 | 3188581 Cosimo de Medici
Cosimo de Medici's picture

Geithner's legacy?  Which one, NYFed or Treasury?  The double negative, unlike in speech where it becomes a positive, is a turbo-timmy-charged negative in the fields of finance and "public service".  As Daniel Hannan says, a "generational offense".

Bruce Krasting gave the perfect example of what hell hath wrought.  AAPL loses in "value" the equivalent of a Lehman or Fannie/Freddie, and the market probes multi-year highs, unaffected and unscathed.  How can this be?  One is the leverage the financial sector carries that, for all its argued faults, AAPL lacks.  Two is the entire interwoven web of derivatives and re-hypothecated "assets", where everyone's pants are held up by the same belt.  One break in the belt and everyone's goods are exposed, and the world can thus see that acting like a BSD doesn't mean one really has a BSD.  Jamie and Lloyd, that Hampton's water is actually really cold, isn't it, when Timmy and Ben don't enhance the myth?  As Nassim Taleb pointed out, in 2007/2008, the finance sector lost more money than it had made in its entire history.  For that achievement they get $33 million homes and a combined $140 billion in yearly bonuses.

Now certainly I am not qualified to offer the kind of sound estate planning someone of Timmy's caliber deserves, and I only state the following as an opinion held by a very common and ever-peaceful man, but to paraphrase Lloyd Bridges character in "Airplane", "I picked the wrong week to give up SS protection and bullet-proof cars."  Lucky for him he's only varmint-sized.

Sun, 01/27/2013 - 01:53 | 3188769 Laura S.
Laura S.'s picture

And that is Tim Geithner's true legacy: the "0.2%" now control 69% of everything.

This fact is absolutely outrageous and I don't know where the Americans are when they read this notice. Well this nation is becoming a caricature of itself. Dropping level of education, public debt, national debt, politicians nominated by Wall street. And of course, racism. No matter we have an insane amount of comparative evidence that US does not have to fear immigrants (starting with Canadian immigration policy). America prefers to bail out banks than give education to their own children.

What to do?

Sun, 01/27/2013 - 03:00 | 3188787 WTFUD
WTFUD's picture

As i recall the video ( not the song ) " i want to brek free " was banned in the land of the free!

but life still goes on!

Sun, 01/27/2013 - 03:05 | 3188789 WTFUD
WTFUD's picture

sorry break free

Sun, 01/27/2013 - 12:49 | 3189121 Remington IV
Remington IV's picture

math for dummies

Sun, 01/27/2013 - 14:40 | 3189309 reader2010
reader2010's picture

Get used to that.

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