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|Date: 2022-07-03 Page is: DBtxt001.php txt00008799|
Congratulations chumps! You are now on the hook for $303 Trillion in Derivatives bygjohnsitFollow Before Glass-Steagall was repealed in 1999, Wall Street was on the hook for bad bets with derivatives. During the real estate bubble the taxpayer was on the hook for these casino chips. Then came the 2008 meltdown and Dodd-Frank was pushed through. The taxpayer was off the hook for six years. But now Congress rolled over for Wall Street and the taxpayer is on the hook again.
First of all, let's look at how this came to be.
A Mother Jones article back in May showed us all how this legislation was written.
That's right - they didn't even bother to change the wording. That's how corrupt our Congress is.
Now let's look at how big of a pile of liabilities you've inherited.
Those Wall Street banks can now use federally-insured deposits and use them as collateral against derivative gambles/bets. Heads they win, tails we lose.
This is just one reason why I didn't like Dodd-Frank.
Dodd-Frank was a massive regulation package that didn't define exactly what the regulations would be, nor did it address the fact that our regulators were completely captured.
Glass-Steagall wasn't regulation, it was reform. It broke up the banks. No rider on a budget bill could have overturned that.
3:00 PM PT: I should clarify: You aren't on the hook for all that money yet. What the bill has done is allowed the banks to put you on the hook for it using the method I mentioned above. Of course they would be able to lower their risk and thus interest payments by doing so, so they would be insane not to do it (they lobbied for it after all), but for the moment you aren't on the hook for it.
FRI DEC 12, 2014 AT 02:02 PM PST
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http://www.dailykos.com/story/2014/12/12/1351389/-Congratulations-chumps-You-are-now-on-the-hook-for-303-Trillion-in-Derivatives TO DO http://www.dailykos.com/story/2008/11/12/659578/-Two-signs-that-something-is-seriously-wrong
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