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Is Citi The Next AIG?
Earlier today, when we were conducting a routine check with the Office of the Currency Comptroller's on the total notional amount of derivatives held at the Big 4 banks in the context of the "JPMorgan break up" story, we found something stunning: using the latest, just released Q3 OCC data, JPMorgan is no longer America's undisputed derivatives king. Well, it still is at the HoldCo level, where it is number one in terms of notional derivatives with $65.5 trillion, but when one steps a level lower, namely the FDIC-insured commercial bank (the National Association or N.A.) level, something quite disturbing emerges. This:
As the chart above, which references Table 1 in the Q3 OCC report, shows Citigroup, or rather its FDIC-insured Citibank National Association entity, just surpassed JPM and is now the biggest single holder of total derivatives in the US. Furthermore, as the charts below show, while every other bank was derisking its balance sheet, Citi not only increased its total derivative holdings by $1 trillion in Q2, but by a whopping, and perhaps even record, $9 trillion in the just concluded third quarter to $70.2 trillion!
Here is Citi in context:
What is the reason for the surge in total derivative exposure? was it futures, options, forward or CDS? Neither. The answer: OTC traded swaps...
... which soared by $5 trillion in Q2 and over $8 trillion - or a massive 20% in just one quarter - in Q3 to a whopping $49 trillion, $16 trillion more than the OTC swaps held by JPMorgan or Goldman Sachs, and more than double the swaps held by Bank of America!
And that's not all: perhaps what is most bizarre is that Citigroup is the one bank whose HoldCo holds less derivatives, or $64.8 trillion, than its FDIC-insured N.A. OpCo which has $70.3 trillion in derivative notional exposure. For those wondering: this was not the case in the second quarter when the HoldCo ($61.8 trillion) held more derivatives than Citi's FDIC-insured bank ($61.1 trillion).
Then we started thinking:
Citigroup... swaps... Citigroup... swaps...
and a lightbulb click, because we remembered that it was none other than Citigroup that crafted the legislation on the swaps push-out provision which passed Congress without nary a peep from either side of the aisle, and which put taxpayers on the hook for FDIC-insured derivative exposure - and in Citi's own case a soaring $70 trillion as of September 30, 2014:
We also revealed that, not surprisingly, the main backer of the bill is notorious Wall Street puppet Jim Himes (D-Conn.) the man BusinessWeek branded "Wall Street's Favorite Democrat" who also happens to be a former Goldman Sachs employee.
And yet, despite all these critical recollections, many questions remains, such as:
- Why does Citi's FDIC-insured bank suddenly have more derivative notional exposure than its HoldCo: something which is generally without precedent?
- Why, when every other Big 4 bank is derisking its balance sheet and reducing its derivative exposure in light of far more stringent capital requirements, is Citigroup adding to its derivative notional and swap exposure at an unprecedented, feverish pace, which saw the bank boost its OTC Swaps holdings by 20% in just one quarter?
- When Congress was voting for the swaps push-out legislation, the Q3 OCC data was not yet publicly available. Was anyone in Congress aware that some $9 trillion had been added to the tally of taxpayer insured derivatives held at Citibank NA as of September 30.
- What is Citigroups and Citibank's total derivative and total swap exposure as of December 31, and has it continue to soar at a rate of roughly $10 trillion per quarter?
And perhaps most impotantly: what is the underlying trade that requires Citigroup to keep adding to its swap exposure at a time when increasing volatility is forcing all other banks to unwind swaps in order to minimize VaR and be in compliance with Fed capitalization requirements?
And then another lightbulb went over our heads: the last entity to do this was, drumroll, JPMorgan, in early 2013, just before its London whale trade imploded and when the bank's attempt to corner the IG9 market failed miserably but not before JPM's CIO trading desk doubled down, then doubled down again and doubled down some more taking their total derivative exposure to several hundred billion... before it all came crashing down.
Now, we are not saying Citigroup is in the same boat as JPM's infamous CIO which led to congressional hearings and what not - especially since $250 billion was manageable; $50 trillion will not be - but we do wonder: just what is going on behind the massivaly margined scenes if Citi is following every page in the London Whale book and on top of everything it also had to lobby and petition Congress to change the law just so whatever it is that Citigroup is doing, it could continue to do, and what's more: with explicit taxpayer-funded backing.
Which leads us to the final question:
- Is Citigroup about to become the "New Normal" AIG?
Source: OCC
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We're going to need a bail-out to bail-out the bail-out. '
Saw it in the excellent documentary linked earlier by Escevara (sp) via Meofbills (sp)...
Value of institutional real estate in Japan went from 14 trillion yen in 1969 to 2,000 trillion yen in 1989.
That bubble burst, a long time ago and Japan is still (barely) trudging along.
Point being that between so many variables (set up to be exactly that way) in the global financial world, coupled with laws and controls in very few hands, this game of NUMBers can be played for a loooooong time yet.
Something tangible has to give for real change to emerge.
Like the rending of social fabric (underway globally), the bleakness of constant war, especially in certain places...
watch this, it is fractally applicable world over.
Heard another excellent little soundbite somewhere...
The future is here now, it is just unevenly distributed. Ponder that ;-)
The Princes of Yen:
https://www.youtube.com/watch?v=p5Ac7ap_MAY
Princes of Yen = intertesting flick. Thanx, ROI
Just passing the love I get from ZH comment school :-) You are welcome.
Thanks for the video link ORI.
I did not know that the records for the ECB were 'immune' from search by ANY police or investigative body.
Most of us "know" what is in that film, yet, I watched in mostly shocked silence....
People don't matter....such a strange world money hath wrought....
Thanks for the Princes, never heard of Richard Werner. A deep look into the banksters' kitchen how they have been cooking Japan since the WW2.
Fucking die already, will ya?
one of this megabanks will go down
Exactly
all along i had no doubt we would have another financial crisis ... and taxpayers on the hook ... again
but to (politically) appease the masses 1 or 2 would have to be taken down (B of A at the top of my list ... HQ'd in charlotte ... not part of the inner club)
Not without taking all of your taxes paid, your social security, your 401K, and your IRA - or should I say MyIRA
When does a number become so large it no longer represents anything?
If you add up the gross worth of all the counterparty’s, is it more or less than 70 Trillion?
If not, then the large number no longer represents anything, it represents nothing of value.
At least in percentages.
So, 1% of 70 Trillion is 700,000,000,000 BiLLION!
Now that’s a big number that represents something.
Something no one has to pay a gambling debt.
No, it's 700 BILLION
The numerical representation was for effect; not textual accuracy.
However, your point is well taken.
what's wrong with the other banks that aren't going balls to the wall? when the game is heads-i-win tails-you-lose (citi will never be allowed to collapse) then it's almost a breach of fiduciary duty not to gamble irresponsibly.
not a problem. citi is tbtf.
Hmm i like your picture but I guess there are no TBTF once the wheels come off this markets.
only way to save them all is to reset the system
2015 is the year
As things stand now, there'll probably a bond crisis no later than 2H 2015, and a lot of unemployment. One only needs to look at the price of oil, the amount of junk bonds issued by the energy sector and the timing of that, and the yields on said junk bonds. Of course, it could happen sooner, or perhaps there's some hidden insurance shit that could push things out a bit further, but based on what I know right now, their hedges against low prices run out around 2H 2015.
You can feel it coming...that rubber covered greased pole heading towards the taxpaying muppet ass at 120 mph.
If I was one of these CEOs..and saw that you only get fined a small % when you cheat....and never get a criminal investigation ..I would cheat too...it just costs a big political donation to cover yourself...
Is Citi about to become Americas Bad Bank?
Thats the first thing I thought myself - Citi is going to be the bad bank that gets flushed
My bet is Wells Fargo is going to get crushed long before Citi even breaks into a sweat.
The biggest, baddest bank the world has ever known.
Now, how does this play into the "break up JPM meme?"
Get to work Mr. Bullard!
Citi is already a dead corpse, they have no choice. The strategy is called quite or double :)
it's that time again for a slow but steady walk to the bank and taking out some cash....
I would love to see Obama cut them a check for 70 trillion. This check will not bounce...trust me guys.
not a big deal, he just only needs 70 of his 1 trillion Dollar coins... probably carries that in his golf purse
I mean apart from all the horror, this is great, Kafka-level black comedy. The total bill they stuck to taxpayers for just this time was $303 trillion when the derivatives start coming apart. Okay guys, now pull the other one. Split that by 330 million Americans and you get... Hey Billy-Bob, where's your million dollar share coming from? Hey single working black mother trying to raise 3 kids on a receptionist job at a company that's three quarters broke, where's your million dollar share coming from? They broke it this time. They could throw the entire global GDP into this maw and still come up an order of magnitude short and then some.
wheelbarrow time!
I hear McDonald's is coming out with it's all new "Trillion Dollar Menu". You can get a small fry, small drink and a cheeseburger for just 3 Trillion FRN's.
And you get change back on your trillion! What a deal.
I'll buy a set of notes to frame and stick on my wall.
Hime rhymes with Slime.
A new breed of Democrat. If this does not dispel the myth of RED/BLUE then nada will.
Nada it is then!
Citibank Press Release"...our investment in Jack Lew and Peter Orzag have an 10000% ROI!!!"
60 trillion 70 trillion, those figures are so massive it doens't even make sense anymore.
Give it time. They'll make perfect sense when we're all trillionaires!
The banks will claim notional values grossly overstates risk exposure. Netting of offsetting positions winnows that $239T figure down considerably. Unfortunately for this line of logic is the troublesome fact that 93% of gross (and likely net) exposure concentrates in just 4 banks. Failure of just one of these titans endangers the entire house of cards. Remember too these guys are living on the razor's edge inasmuch as there's roughly 1.7 trillion or so in capital in the ENTIRE US banking system to absorb losses.
Looks like Citi is being set up to be the patsy here. Then they'll try to send the bill to the taxpayer (as usual), only to have the taxpayer turn his pockets out and jig will be up at that point.
I don't know, I doubt they will go away after we show our empty pockets. I assume we will will get flipped upside down and shaken a bit before they leave us- just to be sure..
Nothing says lovin' like someone in the oven.
That's what we're going to get.
Those FEMA coffins are for the Praetorians.
Good synthesis, I agree wholeheartedly, and that was my first impression when I read the article, but I was unable to decipher
the way you did, WS. Thanks for sharing.
Yeah, those risk arguments always have the assumption that none of the counter parties are going to go under, which, as we all know, is not realistic. GIGO at its financial finest.
And Citi has been shit for quite some time. Not necessarily a patsy, but quite possibly simply the weakest hand out of all the TBTF.
check out usa Watchdog .......Ron Kirby on the OIL DERIVATIVES upcoming crash
http://usawatchdog.com/oil-derivatives-explode-in-early-2015-rob-kirby/
OIL drops 50%, its gotta take some gamblers with it.....HI HO SILVER....AWAY!
The way the bill went through congress tells me that our government is using Citi as a conduit for some type of financial transaction(s).
Well, if you think this mafia is "our government" then you obviously deserve the governing you're gonna get.
Do they hold a large silver (paper) position?
". . . because we remembered that it was none other than Citigroup that crafted the legislation on the swaps push-out provision which passed Congress without nary a peep from either side of the aisle . . . ."
You might check that statement. Elizabeth Warren raised a big stink about this in the Senate.
How much of this derivatives overhang is Greek related? If the election goes wrong for the EU, a default and EU exit seems assured. The EU spent 240 billion Euros to rescue Greece. Greece ows big time to European and probably American banks. When default happens, you know that bankers have written billions in CDS on Greek Debt. Are all the counter parties liquid enough to meet the derivatives when they are called in? Like AIG in 2008? Fuck no! They won't be able to handle a Greek default event.
The potential of a Greek default is not even the issue. The problem is when Greece defaults, there will be incentive to default in Italy and even in Spain. That is game over for the EU as you know it.
Can the EU and Germany support Greece and others for much longer? I don't think that is possible either. There is just no legal precedent and definitely no EU framework for any of this.
Simple! It will not be called a "credit event". \s
These Derivatives are almost certainly related to Interest Rates.
The FED sold Interest Rate Swaps in early attempts at stealth QE -manipulation of Interest Rates and 'Rate Swaps/Futures' for the sake of policy objectives- and was as much about building the Derivatives Complex in conjunction with it's cartel members JPM and Citi, etc...
I bet you now that the Conimbus bill passed, the other 3 TBTF's have increased their notational dervative holdings.
And why not? Uncle Sugar is going to make everybody happy.
Pray tell, how is uncle sugar going to make everyone happy, when they can't pay their own debts, much less another 300 trillion in deratives???
I knew I smelled derivitive smoke. Said so in my earlier post from this morning. Dollar knee- jerk frought with danger.
FDIC has this puppy covered. Using their staunch historical analysis, a 2.0% Designated Reserve Ratio is only needed.
Helllooo, McFly
No way, FDIC has anything covered, they don't have the 2% of what out there. We are on autopilot.
I'm expecting something bad to happen, unexpectedly.
Like in 2008/2009 when the whole show was planned?
Or in 2001 and 2002?
Unexpected to the DWTS crowd for sure.
Seems about every 7 years is frequent enough to satisfy the lust, but long enough for silly people to believe it when the media tells them they've forgotten the last time. 7 years is an iconic time-span in human life, it seems.
ditto
It's only unexpected by the sheeple. Goldman, JPM and Citi all know they have a load of derivative turds to dump on the US taxpayer.
Bill passed just in time for the huge derivative dump on the US taxpayer.
The taxpayers won't even realize that they've signed the dotted line until they're paying the price. There will be blood in the streets this time....
Jamie Dimon (JPM) was on the phone with the powerful politicians to get it rammed through.
Then they'll all play dumb, like Yellen, William Dudley, Williams, Bullard and Evans of the Fed. They'll claim they never saw it coming.
Jamie was on phone with Maxine Waters. Nuff said.
Our Zionist Congress takes its marching orders from the house of Saud http://www.alwaleed.com.sa/
what could go wrong?
Must have decided to corner the oil market when it dropped below $100. How's that workin' for ya?
LOL!!!
Go ahead...do it. Bail out some big banks again...
The whole thing is laughable. The law is meaningless, as there isn't enough money in existence to cover these bets. And if you were surprised by how fast they got it passed, you'll be amazed at how fast they un-pass it when TSHTF.
This thing goes down again, and no one will be getting any bailouts, or bail-ins, or bail ANYTHINGS...there will be some nasty surprises, and banks will burn.
The next major crisis takes down the big banks, there won't BE any bailouts this time.
"There WILL be bailouts or you will awaken tomorrow with tanks in the streets."
Hugs
Hank Paulson
Ill take tanks(MRAPs) for 200 Alex.
A volley of molotovs for all!
Why engage the MRAPS? They'll brake down eventually, and while the JBTs are driving around in them, they're not going to be there to stop anybody from burning their fucking houses down. In other words, it behooves them to behave when SHTF, because their reliance on heavy equipment can be turned against them.
Oh please! The fact is, the bailouts happened because the whole thing was about to implode, and a whole lot of people were about to get exposed, completely and totally, the shit was coming from all directions...
If Hank issued any threats, it was to those folks. Something along the lines of "If WE go down, we take ya'll with us. So figure it out."
It wasn't to "save" the economy, it was to keep the collapse from "exposing their nakedness". The only way to prevent all the demands coming in was to pay them , but the amount needed was astronomic...what to do, what to DO?
Threaten the ones who were IN on it, and sell the rest on "Financial Armageddon"...presto! 700 billion dollars, and they take it and say "Yeah, that should do it...for now. We'll be in touch..."
10's of TRILLIONS to keep the Ponzi from unraveling and all it has got us is 10's of TRILLIONS moar debt... Even a 5th grader who can barely pass math could see where this is all going to end... The Keynesian destruction of human civilation as we know it...
Derivatives have more to do with financial gangsterism than Keynesian theories.
Used to be if you didn't pay your Las Vegas debts, you were found weeks later in a shallow grave outside of town.
If this was REAL gangsterism, the debts would not be allowed to accumulate so much without some drastic action. But banksterism, well, the sky's the limit.
We FLEECED some folks...
Not gonna see this on CNBC....
Citi was scum in 2008, not the largest but one of the most irresponsible, and a lot of Paulson's panic and bizarre moves were explicitly to save Citi and hide their transgressions.
Though the title was right and AIG was the worst of all, Citi was nearly as bad with much less excuse.
You can bet Citi is not the only roach. There are others.
Very interesting discovery, Tyler(s). Please get into this issue in-depth
with more articles/perspectives to ruminate on. I am certain that this issue is representative of the end-of-the-World when it comes to Capitalism. The derivatives universe is the weakest link in the Ponzi superstructure IMHO. I always thought that BofA was going to be the one with the greatest leverage after 08. In brief, I'm no Economics major and I am here to learn how hot-potatoe-hot-potatoe works in the real World, Z/H. Seems to me that someone is going to get burned very soon.
Yeah Tyler ....find citi's fat finger and the whole ponzi may go down.
Is holdco loaning them money? And that's why they're netting it out?
Treasury derivatives.
Really, I mean, how do politicians get away with this stuff? There is no rational justification for making the public at large responsible for the gambling debts of the banks...how can the electorate not be livid? After all, if your neighbor was out at the casino all day and the casino dropped the cost of your neighbors losses in your mailbox each night you would be onto this like white on rice! Wake up, people!
Go ask the first hundred people (not working in finance) you meet these questions, and you might find one who will understand the issue, let alone be enraged about it. (then ask that person what their ZH handle is)
ot: our leaders you know the ones who police and judges and military and cia nsa protects..corrupt fuckers
"Now that Prince Andrew has found himself ensnared in the sleazy sex slave story of wealthy degenerate Jeffrey Epstein, Bill Clinton can’t be too far behind.
Epstein, who paid teenage girls for naked massages at his Palm Beach, Florida mansion, is a convicted sex offender whose circle of powerful friends has included financiers, celebrities, politicians, and scientists.
In fact, Epstein, 61, has maintained many of these relationships even after pleading guilty in 2008 to a felony charge stemming from a lengthy probe of his lewd interaction with scores of underage girls, many of whom were recruited while they were students at a Palm Beach high school.
Epstein is pictured above in his most recent sex offender registry photo.
But while Prince Andrew and other public figures resumed meeting with a post-prison Epstein, Clinton appears to have avoided the billionaire, who owns a private Caribbean island, a Manhattan mansion, a New Mexico ranch, and a Paris apartment in addition to his waterfront Palm Beach residence."
believe me- that one is pure orchestrated distraction from the real pedophile scandals.... so the average dupe will think we are just talking late teen happy ending massages as opposed to the shit they are into
Last summers train rides for kids from Central America probably got culled down for "special placements".
Bernie was a batboy.
Ponzi was a piker.
There are $40-60 trillion dollars existing.
Assuming 10% bail-in, that would be 4-6 trillion.
Not nearly enough to cover losses of $1.4 quadrillion derivatives, nominal, just a drop in the ocean
dt
Citigroup is where saudis keep their money.
Unless saudis have abandoned citi, I'd say citi won't be sacrificial lamb.
Barclays, BofA are my guesses
My first thoughts:
Surprise! Quantitative Easing has many forms.
Yellen never stopped printing: the printing was transitioned from the First Derivative -Gov't debt/future tax receipt sales- over to a Secondary Derivative. The difference in size is almost certainly a function of the ratio of emmitance requirted to force the same market respnses. -Like printing $10 bills would require 10 times as many bills be printed than if $100 bills were being printed to achieve the same leverage in the market.
Government issued 'debt' is a First Derivative of Tax Reciepts.
The Secondary Derivatives Complex took over the debt expansion of was commonly called QE.
The credit/money derivative printing has merely been moved from one place -the FED- into the secondary conduit called Citi.
Quantitative Easing never ended: it only changed form.
in other words we are officially officially in the vertical part of the expo curve.
Blythe Masters burn in hell...
Obsfucation.
Blyth may be credited with creating Derivatives; but, the truth is that the FED was integral in developing the construct.
The FED has sold Derivatives for many years.
This was openly discussed in FED minutes. I'll see if I can find and post some links to particular FED minutes relases where the sale of Interest Rate Swaps are discussed...
Maybe, just maybe, Citi has been "nominated" as the default, pun intended, "bad bank". One "pays" for the sins of the many, at taxpayer expense of course.
I wonder how they think the taxpayers are going to be able to come up with All those TRILLIONS and there still be anything left to run the country and live on. Morons
Very true! I guess it helps with the procurement of more suckers, err, I mean counterparties to "trade" with?
you presume they* want to "run" the country as some sort of sustainable entity, their* business model is to run the country into the ground, bankrupt everybody with public debt and buy up the assets in a fire sale Ala Ukraine, then bring in 300-400 million cheaper foreign workers (mostly Muslim) and get a good return on their water asset investments and really get some labor arbitrage leverage, that is the plan for US as is the plan for the EU
They arent, thats not what the FDIC does.
The FDIC doesnt bail out the bank, it bails out the depositors of a failed bank, or undercapitalized bank. What Citi did was create legislation to allow them to use deposits and loans as notional principle for prop-trading in swaps most likely to hedge interest rate risk.
"What Citi did was create legislation to allow them to use deposits and loans as notional principle for prop-trading in swaps most likely to hedge interest rate risk. "
Citi had ALREADY used the deposits and loans to back their prop-trading.
Citi was already doing what MF Global did. The Client Funds were already pledged/handed-off to their counterparties.
This was just another case of the politicians legalizing the activity after the fact.
EXACTLY like when the ( cleary illegal at the time ) Citi and Travellers merger was completed and legislative/regulatory approval was sought afterwards.
The important question is whether or not the Client Funds/DEPOSITS have actually already been 'VAPORIZED' ala MF Global or are just spiralling around London in the re-hypothecation whirlpool to keep the Dervitives Stacks from collapsing and blowing up one of the big ( Asian? Euro? ) Banks.
How can anyone know what has been leveraged 2-3-4 times??? It will begin with some small hedge.
Look like we could start on the way down just about... now.
DOW
http://www.globaldeflationnews.com/dow-jones-industrial-averageelliott-w...
S&P 500
http://www.globaldeflationnews.com/sp-500-indexelliott-wave-update-for-w...
Pot calling kettle black....??? Citi downgrading..
Wanted to see what .gov.com was spewing today...
http://www.marketwatch.com/story/citi-downgrades-chevron-others-on-lower...
Hey man financing a Syrian & Ukrainian war against Russia under the table is expensive........ guarantees have to be made to continue the purchase of bad US debts
????? What are they hiding in plain sight?
The criminal masterminds in DC have an even simpler plan - just let the bankers take their depositors money no questions asked HA!! :
http://kingworldnews.com/former-white-house-official-warns-terrifying-cy...
"Sorry folks - you got tricked fair and square - and now its time to move on." Barack Obama. November 2015
"Due to the financial emergency, I am using my pen and phone to take everyone's deposits out of the banks.
"You will all be issued New USG EBT Cards for your transactions."
Maybe they are on the right side of oil with their derivatives and it is profit. They are happy to book that. But who is the loser that is hiding things...jpm...anyone...jpm...
In July 2014, Deutsche Bank dumped it's US Power Trading Books on to Citi:
http://www.nasdaq.com/article/citigroup-acquires-deutsche-banks-us-power...
As far as Deutsche Bank (DB) is concerned, I thoght that anything under $30 was a bad technical level for for Deutsche Bank (DB), and it plowed through that early this morning.
It's at $28.83 right now, and the low today (and for the year was $28.77.)
On December 26, 2014, The streetdotcom named Deutsche Bank (DB) the 1st most toxic stock to dump--particularly if it got below $30.00:
http://www.thestreet.com/story/12995581/2/these-5-stocks-look-toxic-for-...
Any thoughts on that? Deutsche Bank ticker (DB): http://seekingalpha.com/symbol/DB
If DB fails, they have Germany exactly where they want them to be in order to get the all clear on the fucking Eurobonds.
We have all hoped for a bust to justify our predictions and disgust with the way the system has been run but I fear that none of us will want its results when the bust arrives.
CITI - Too big to give a s#it.
Bad things happen when unschooled little kids play with loaded guns....
When you have nothing else to lose, you might as well go all in.
Surely they must mean: "Wall Street puppet Jim Himes, GS, Conn."
"... and which put taxpayers on the hook for FDIC-insured derivative exposure..."
It is CONGRESS that allowed these cocksuckers to put trillions in toxic waste derivatives ahead of our private little consumer accounts, and be FDIC-backed. We the Great Unwashed are unsecured creditors, and CITI et al. are way ahead of us in the default que. That's now the law.
The FDIC is backstopping us with $20 billion in assets for umpty-trillions in exposure to toxic paper. Even the branch managers at your local big-six banks have no fucking clue that this is the case.
From an outsiders' perspective it looks like your GOV is trying to deliberately tank your country...
Just an observation.
It's called "purposely bankrupting your debtor, after which you take ownership of all your debtor's assets... which in this case is... every US citizen".
In other words, this is called "how you officially and lawfully enslave an entire nation", and make the WallStreet ownership of the USSA not only metaphorical and "for practical purposes", but also "official and lawful".
At which point, I do wish people would realize what I've been explaining to them for years. That "government" is fiction. That "authority" is fiction. That "official" is fiction. That "law" and "legal" are fiction. And that no human being can be obligated without his express, unpressured, fully informed, voluntary permission (for just compensation I might add).
It is hiding in plain sight, as we say.
A naïve question : what would be the real impact of Citi being Lehmaned ? Seriously?
you will pay for it.
the acute effect depends upon who the counterparties are. where are the bets made? from wherever that is the best way to describe it is the finale of the 7/4 fireworks show where the big bombs start off the show with their huge radiation, different colors and shapes and secondary delayed bursts. it then erupts into a cacaphony of an array of smaller flairs and minibombs with more big bombs for punctuation ending in dead silence and applause. the difference is you will be crying at the end of the show since many of the bombs will misfire and blow some people up who happened to be in the wrong place at the wrong time.
in this case humpty dumpty may be a casualty.
But what about the risk of contagion ? Of domino effect ?
If Citi gets Lehmaned, that means that somebody just divided by zero. Implosion.
Nothing happens but .gov and MSM don't want you to know that.
People that invested in Citi currently have a positive balance on a piece of paper. That balance gets smaller and possibly becomes 0. People that owe Citi money, the 99%, either owe someone else the money or no longer owe anything.
citi is an arab(opec) bank. the arabs control the show for now and know the immediate future and have made a huge bet to be the last man standing? or the first man to get snipered?
And they did it again: Too big to fail.
Not according to the 6000 years bubble arse economist.
Just tell Citi that they will get bailed out under the new emasculated DoddFrank (funded by the other banks hahaha), but that all executives earning more than $150k will be jailed under a little-read clause.
See how quick they change their investment plans, then.
Death by 1000 derivatives to the criminal conjurers and their demonic entities called corporations
So say we all
I thought the smart money was on Deutche Bank holding the baby when the musical chairs stopped? (If you'll pardon my mixing the metaphors).
Sorry but could someone explain to me how banks can hold derivitives in amounts far exceeding the global GDP by several times?
Read the rules for the bank in 'Monopoly'
not the next AIG, because this bailout will be seamless and needing no further legislation or debate
So just tell me now to whom do I make the check out to
Successive rounds of bailouts to the billions to prop Citi, More to come ? While not much that you can do with the banksters, what about the muppets who still hold their shares, bonds and buy their snake oils and deposit monies with them ? The muppets are crying for more...walking into traps that are not even disguised.
LINK