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Bank of America Corporation Message Board

  • bdannye bdannye Apr 4, 2013 9:10 AM Flag

    By Michael, on April 3rd, 2013

     

    An excellent article by Jeff Nielson detailed how this could result in the big banks grabbing our money when their trillions of dollars of reckless bets go bad...


    1) Our banking regulators knowingly allow financial institutions to engage in recklessly misleading (if not outright fraudulent) contracts with their clients, through the use of complex “small print” in their account contracts with clients.

    2) The three largest U.S. “banks” by deposit (JP Morgan, Bank of America, Citigroup) have made bets in their own rigged casino, which total well in excess of $100 trillion, an amount which completely dwarfs their total, combined deposits (and assets).

    3) A large portion of those bets occur in the $60+ trillion credit default swap market. Pay-outs in these markets can (and do) exceed 300 times the amount of the original bet. It is bets in this market which “blew up” AIG, requiring more than $150 billion in immediate government aid.

    4) Following the Crash of ’08; these same banks mooched a package of hand-outs, tax-breaks and “guarantees” (i.e. future hand-outs) from the Bush regime in excess of $15 trillion, the last time their gambling debts went bad on them – and all of these banks have been allowed to dramatically increase the total amount of their gambling since then.

    5) It would take only a minor change in the gambling contracts in which these bankers engage to allow their creditors to seize funds out of ordinary bank accounts.

    6) The existing language for the bank accounts of these U.S. banks is possibly already so vague (and prejudicial to clients) that it would allow these banks to reinterpret the terms of these bank accounts – and allow rehypothecation to be used to rob the holders of ordinary bank accounts, people who themselves make no “bets” in markets whatsoever. Alternately, customers could be blitzed with an offer for “new and improved” bank accounts, where terms allowing rehypothecation are slipped into the contract, with the banks knowing that the “regulators” will do nothing to warn account-holders of the gigantic risk they are taking.

    But we are all covered by deposit insurance, right?

    That is what the people of Cyprus thought too.

    As we just saw in Cyprus, when there is a "banking crisis" sometimes government steps in and suddenly changes all of the rules overnight even though the vast majority of the population is against it.

    Hopefully you can see that no bank account will ever truly be "safe" ever again.

    Your money may be safe today, and your money may be there next week, but someday it could disappear in a single moment.

    And the general public is definitely starting to lose faith in the banking system. Google searches for the term "bank run" have been absolutely spiking recently. Just check out this chart which shows that searches for "bank run" are now the highest that they have ever been.

    So what should we all do to protect ourselves?

    As I mentioned earlier, it is important to not have all of your money in one bank, and from now on you will want to permanently keep paper copies of all of your bank account statements.

    Someday you may need those statements in order to prove that you actually had money in the bank.

    Our world is becoming increasingly unstable, and at some point financial disaster is going to strike.

    By taking prudent precautions now, hopefully you will be able to minimize the damage to your family.

    This topic is deleted.
 
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