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Goldman Sachs' Exposure To Derivatives Is 362 Times Greater Than Its Assets

Curiously, many Republicans who claim to believe in the rule of law and merits of a competitive capitalist economy, offer no objections to the existence of Too Big To Fail (TBTF) and Too Big To Prosecute (TBTP) banks. TBTF and TBTP are antithetical to a capitalist economy based on the rule of law. These entities are very similar to the socialist/fascist businesses that partnered up with Germany's Nazi regime.

Banks like Goldman Sachs, JP Morgan, Citigroup, etc., have the ability to extort concessions from sovereign governments. The TARP bailout is a prime example. Wall Street threatened to create a global depression and destroy the U.S. economy if taxpayers didn't give them everything they wanted. This situation has only gotten worse as TBTF banks continue to get bigger and more highly leveraged. The first link is Rep. Marcy Kaptur describing the extortion that was TARP. The second link lists the derivative exposures of the four largest US banks.

http://www.youtube.com/watch?v=MeVY7JH_xVU
http://theeconomiccollapseblog.com/archives/the-coming-deriv...

The solution begins with enforcing the rule of law and reinstating Glass Steagall. Reinstating Glass Steagall would effectively break up TBTF and remove their high risk derivatives gambling from the Federal safety net. Former KC Fed President Tom Hoeing is calling for reinstatment of Glass Steagall and former prosecutor William Black has compiled compelling evidence to support criminal prosecution of TBTP banks. The first link is Tom Hoenig, the second is a radio interview with William Black. If milliions of citizens emailed these links to local attorneys, Sheriffs, prosecutors, State Attorneys General, U.S. Attorneys and elected officials, it would make a difference.

http://www.c-spanvideo.org/clip/3343244
http://onpoint.wbur.org/2011/10/18/prosecuting-wall-street/p...

For more info check out my post "Fraud and the Federal Debt" at:
http://www.standupforyourrights.me/?p=1047



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The repeal of Glass Steagall

Is what set the stage for this bank fraud, the banks were lobbying for decades to get rid of Glass Steagall. It was repealed in 1999 and 9 years later they were so over leveraged that it collapsed the banking system.

Setting the stage for bank fraud

The systemic fraud underlying the US financial system a function of ideology. Former Fed chair Alan Greenspan was/is opposed to regulating financial fraud, and this anarchical ideology is at the root of America's fiscal problems. A PBS documentary called "The Warinig" exposes Greenspan's lawless world view. I highly recommend watching it:

http://video.pbs.org/video/1302794657/

Glass Steagall was enacted in 1933 as a means to curb the bank speculation that led to the 1929 crash. It kept Wall Street in check for 70 years by separating commercial banking from high risk investment banking. Under Glass Steagall, only commercial banks had access to the Federal safety net (FDIC). Here's a short article on Glass Steagall:

http://westlawinsider.com/?s=gramm-leach-bliley&submit.x=8&s...

In addition to the repeal of Glass Steagall, a year later the Commodity Futures Modernization Act deregulated derivatives. Here's an excellent and easy to understand article on the subject:

http://blogs.law.harvard.edu/corpgov/2009/07/21/how-deregula...

http://www.dailypaul.com/277342 (Rand Paul: One person can make a difference)
http://www.StandUpForYourRights.me/?p=1264 (Fast and Furious hearing)

"MARK to MODEL" SEC ruling in 2009 & Derivates NOT outlawed

In March 2009, the SEC ruled that all BIG BANKS could hide their huge mortgage & derivative losses by changing the "Mark to Market" rule to the "Mark to Model" ruling. It's THE REASON the stock market took off. It was a game changer. You see, all of a sudden a bank could put any value on a property they own, instead of it going to the marketplace and getting "market" value. It would be like you & I selling our home, not for the market value price of $200,000, but instead we put a price of $400,000, so that on our "books", we would look like we were a more valuable company. Hence, the Big Banks could hide their enormous losses, and as a result, their earnings became magically great overnight. So that is what drove the stock market. It was phony, but that's what happened. CNBC was their accomplice.

Derivatives were OUTLAWED in 1930 AFTER the Great Crash of 1929. Well, the politicians NEVER outlawed or changed one solitary thing regarding the derivatives after the Crash of 2008, and that meant the likes of Goldman Sachs, JPMorgan, StateStreet, Wells Fargo, and other large banks could still, amazingly enough, deal in derivatives, CDO swaps, or any redefined instrument of corruption!

This is the sad state of the nation that we are in today. It is, imo, a criminal enterprise, and it's been going on far too long, like a century---note the Federal Reserve formed in 1913. But, I have no idea how we can get out of this mess. We can't vote out our politicians due to the manipulation of voting machines, and also the recent purchase by BALDERTON CAPITAL of the SCYTL software for our national presidential voting software tabulation, so conveniently located in Spain & controlled by Balderton Capital located in LONDON with 2 former VP Goldman Sachs guys working there! Add to that we have politicians who NEVER read the bills and yet, vote to pass them! We could save ourselves a lot of money & benefits, if we just let the Lobbyists have their way and got rid of all of the worthless politicians.

The only thing I pray and hope for is that these Billionaire Elites are overdoing everything, and that THEY don't even have a clue about the ramifications or "unintended consequences" of all this money printing, as they haven't EVER embarked on such a dramatic amount of money printing ever before in the history of the Federal Reserve. Just look at the charts of America's Money Supply. It's enormous, unfathomable since 2007!! We can just pray that these people make some kind of HUGE unintended, uncontrollable mistake that will reveal to the entire world all at once that the scoundrels, who they are & what they have been doing.

How can we get out of this mess?

I'm sure many pre-revolutionary American colonists were asking the same thing. But unlike the colonists, we have a Constitution and Bill of Rights that puts the law on the side of "we the people". But as I said in the post, the law is not being enforced. I don't think an armed rebellion is a viable option so we need to generate the ground swell of support necessary to restore the rule of law. This is what Thomas Paine did with "Common Sense", he helped convince colonists that Revolution was worth fighting for. There is no guarantee that we'll be succussful, but personal victory is achieved when we stand firm on our principles, irregardless of outcome.

The founders ended the Declaration of Independence with these words: "And for the support of this Declaration, with a firm reliance on the protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes and our sacred Honor." They understood the price of freedom, it requires total committment with no guarantee of success.

http://www.standupforyourrights.me

http://www.dailypaul.com/277342 (Rand Paul: One person can make a difference)
http://www.StandUpForYourRights.me/?p=1264 (Fast and Furious hearing)

"They bought their ticket. I say let 'em crash!"

Their world is based much more on debt and fiat than ours. They are exposed to leverages of well more than 100 times.

What do you think they'll do when their stock drops? If they can't get us to bail them out again, they'll shift their actual assets behind their bets. So all we have to do is let them crash slowly so this takes place and there ya go. We have robbed them back of all their ill-gotten gains.

Pull out your assets. Promote news that they are insolvent. Rally against all bailouts. Prepare for living without their credit. Simple.

Your're right, we should have let them crash

Many financial experts believed that insolvent Wall Street banks could have been allowed to fail without destroying the economy. Jeffery Miron is a libertarian leaning Harvard economist. Listen to this short clip of him explaining the benefits of letting them crash.

http://www.c-spanvideo.org/clip/3343218

Unfortunately, Dodd-Frank's Resolution Authority has institutionalized TARP for Too Big To Fail (TBTF) banks. Rep. Brad Sherman says Dodd-Frank's Resolution Authority gives the executive branch the authority spend Trillions on future bailouts, without Congressional approval. Sounds like no representation for taxation. Listen to his comments and common sense solution to end TBTF.

http://www.c-spanvideo.org/clip/3343222

http://www.dailypaul.com/277342 (Rand Paul: One person can make a difference)
http://www.StandUpForYourRights.me/?p=1264 (Fast and Furious hearing)