Washington spent months nursing the financial system back to health after the 2008 economic crisis, stabilizing then reviving battered markets and ultimately restoring trillions of dollars in investor losses. Wall Street’s political fortunes have not fared as well.
Now, an aggressive stance against the bankers, financiers and even government officials popularly blamed for causing the crisis is gaining political momentum, and there are signs it is eroding the very financial stability the government championed.
Meanwhile, back on planet reality, derivatives remain unregulated and largely ignored. The FDIC states that U.S. commercial banks alone have [b]$26.7 trillion in off balance sheet derivatives[/b] (read [i]invisible[/i]) that is over 5 times the value of their $5.1 trillion in assets. The sword of Damocles continues to hang over the entire global economy. At any moment, another large business default could lead to a chain reaction derivative collapse that threatens all of the Bretton Woods fiat currencies with becoming completely worthless overnight.
I don’t think that any of the clowns…er…politicians are paying attention. They seem to be in denial with their pathetic monitizing of the debt, while leaving the de facto reserve currency of derivatives hang out there unrestricted…and they are talking about bank regulation as if it matters!
With [b]5 TIMES[/b] the value of all the U.S. banks combined assets held by these banks in unregulated derivatives, the current fluff making the news cycle borders on the insane babble of raving lunatics.
But few know and fewer care…
And still failing to deal with the law of unintended consequences the President continues to create a great depression from might have been a medium recession.