Fox News - $13 Trillion in Toxic Assets for Top 25 U.S. Banks!!!

[texture6]

They forgot to mention the number of times each Mortgage Back Security , Credit Default Swob etc...etc... was traded??? They is a wright off clip try more like 125 TRILLION bitches :)

[theporksicle]

What effectively happens when they settle these massive deals? So if a bank ends up owing another bank $5 trillion, they simply don't have the cash to pay. I'm speaking hypothetically as I'm aware most of the time they hedge their bets by taking up positions on both sides (e.g. buying and selling CDSs on the same credit event) and therefore comparatively little cash changes hands, but if they did end up owing that much?

[PavedStones]

@theporksicle The total size of the derivatives market (eg all the money that would have to change hands if all the bets had to be paid off) actually nears... $1 quadrillion (!). But it's not as horrific as it looks cos their actual market value is "only" about $15 tril. And if you take into account that many of the bets cancel out each other, the figure goes down to about $5 tril.

Still this whole stuff is so insane. If anything goes wrong, it's armageddon.

[theporksicle]

@PavedStones

Yeah, I heard a theory that AIG very cynically sold CDSs on anything and everything, knowing that they couldn't pay up on everything because they figured that if things really went wrong then the entire system would collapse and nobody would be held accountable.

[PavedStones]

@theporksicle I don't know whether this is true but it wouldn't be very surprising. Nowadays the executives of these firms make so much money when signing this kind of contracts that it doesn't matter anymore if it puts the firm at risk of bakruptcy in the long term. When the firm collapses the stockholders (or eventually the taxpayers) are left to foot the bill and the executives are left to walk away with the loot, free as birds, laughing all the way to the offshore bank

[PavedStones]

@theporksicle But AIG might very well have been a victim of the scheme, as GS et al were marketing the garbage debt that they were selling and taking insurance against as AAA rated investments (ie practically risk free for the insurer). I think it was Goldman folks that convinced AIG to start selling CDSs on their junk loans, but it's possible that AIG understood very well what they were doing

[theporksicle]

@PavedStones

Perhaps, I read today that Libya's sovereign wealth fund were sold some dodgy financial products which resulted in billions of dollars worth of losses. I suspect a lot of investment banks had a hand in promoting and selling off risky debt, the question is whether or not the buyers were informed of just how toxic it was.

As for AIG, I doubt they were innocent in it, for one thing they 'insured' a lot more debt than they should have done.

[n057828]

fake money and come xmas you guys are gone. Thank the jews for this one and DONT give me you anti whatever. Close to 30mil people died during the 2ww and that was the USSR. 6mil killed shit yeah bad BUT Fcuk they bring it up each week. make money from it etc. Good Luck.

[youxtubexguru]

You're a moron. Blame your MAMMA... fucking dork.

[leebee39]

obama a liar why people dont vote for ron paul or ross perot the only 2 i know of worth voteing for

[tigerone1970]

Liz Klaman is too good for Fox News Channel.

[zeno57]

I saw Liz once ,she was standing up talking,her body had got to be a nine,It was very hot.

[tombstonetom]

A year ago the talking heads at Foxnews didn't believe the recession was real or significant, now they say the toxic assets in the top banks is equal to the national GDP of 13trillion, 2007.

[johnnynovacaine]

Now you understand why I don't pay attention to Fox 'News.".....

[Strettger]

Or as some call it, "Faux News".

[alyr315]

Hey I like your analogy. You have FAUX NEWS, COMMUNIST NEWS NETWORK or if people prefer "CORRUPT NEWS NETWORK". or MONSTER SCAM NEWS BULL CRAP.

[johnnynovacaine]

Did you know the banks cut these "complex credit instruments" into multiple slices and them moved them all over the world? So in other words - your mortgage could be split 10 different ways. So 10 different investors/funds may own YOUR mortgage.

It's not like your mortgage is going to prop up the regional bank. It's going to prop up foreign funds and investors.

That's why I'm not paying my student loans back. What's the pt.?

It's not like somebody's going to starve if I don't.

[Stealth0031]

Good point about the mtg packaging. But you should try to pay back your Student Loan because it is the right thing to do. Otherwise, you are no better than the losers that got us into this mess.

Nothing personal. I'm just saying we need trust and integrity in our leaders, but it must start with ourselves.

[johnnynovacaine]

Well for personal reasons I'm not paying back -- the main being I didn't even spend most of the money on myself. If I had partied and such I would gladly pay it back as I'm a person of principle.

But since my money was used to go into the pockets of other people who don't want to work I frankly have no intention on paying it back.

Besides - these crooks took my loan w/out myconsent and packaged it with 40 other loans and hawked it to some Arab or some Asian investment firm.....

[johnnynovacaine]

Don't take this the wrong way but I'm not going into debt bondage until I'm 40 so some foreigner can live high on the hog off my back.

If you want to prop up foreigners and their bank accounts: be my guest.

I mean you know offense but my decision is an ethical one.

[Stealth0031]

I understand.

[johnnynovacaine]

Good. It's going to get nasty because many people literally CAN'T pay off their debt. It has nothing to do with whether they want to or not. Many went to school and majored in stupid shit that has now collapsed as professions(investment bankers, philosophy majors, etc.)

Those people are really up shit creek

[Stealth0031]

We are the same age and I could not agree more. Back when we were 18, college was expensive enough (~$600/quarter +books+other). But I have wondered for years how the masses pay back their loans. My wife and I are still paying on her loans, but at least she is a Pharmacist and makes enough $ to pay it back. I cannot imagine the wave of defaults that is about to occur (if not already happening!).

[johnnynovacaine]

It's scary. What's really bad is these idiot crooks at the banks took the loans and packaged them into asset-backed bonds and sliced them up and sold them all over the world.

The Bush yrs. were insanity defined.

Good luck w/you and your wife. I know a lot of people are very bitter. I, along w/many other people have had to put off dreams for later in life.

I mean I'm going to be 40ish before I ever get to do the things I want to do.(travel, party hard, etc.)

Good luck.

[Stealth0031]

Good luck to you as well. If there is any good news it is that we are all in this together.

Godspeed.

[johnnynovacaine]

Thank you sir. If all else fails - I'm going to Europe.

Hopefully it won't be so bad over there.

[Strettger]

Problem is with what currencies were used aswell. If American banks borrowed Deuchmarks or Pounds then converted it USD to loan, then those initial creditors will be expecting payment back in the original currency.

With the USD inflating faster than the Euro, this creates an even larger interest rate as the PPP of the American Consumer collapses with inflation.

This is the sort of thing that would have nations pondering how to reclaim it, such as freezing US soverighn wealth funds ect ect.

[johnnynovacaine]

Like I said -- I'm getting my shit together and prepping to leave.

There is no future in this country. Mexicans will take over California and the West and take it back while America becomes Mexico and turns to crime to survive.

I don't really wanna be kidnapped because I have a decent job.

That's not a future I see for myself or my family.

If Americans are stupid enough to elect leaders like Bush who get them in this mess -- let them dig themselves out of their problems.

[Strettger]

Propping up foreighners and their bank accounts so they can pretend to have an econemy while we do all the work...

This is how the world is viewing the USA at the moment - pay your debts as we paid ours back to you. We finished paying you back for our World War 2 loans a few years back, we took 50 years but we did it and propped up your pseudo econemy for decades.

What real jobs does the USA actualy do so it can pay off it's collossal debts?

[Stealth0031]

Great point about the currency and interest rate risk with the US$. You understand a lot given your age (assuming 23 is correct). As for the pay off? Well, that is not an easy one. For one thing, much gold was purchased while the $ was up. Also, there may be defaults or forgiveness of some debt. Still, I'm thinking we will have high inflation, possibly hyperinflation. The laws of basic economics are at work and we are at their mercy.

[Strettger]

Economics really isn't that complicated when you don't have a vested interest in not understanding it (ie the USD is essentialy a Ponzi scheme at this point).

18 actually, I set the age higher than I was a few years ago when I sighned up because some content was blocked to those under 18...

Well gold is a gold preservative of wealth, so perhaps gold will be traded directly as it used to or hyperinflation will collapse the USA, leaving everyone else to ship it aid and the like...

[videos4es]

I'm impressed. Sure hope you are going to school for Economics or Finance (and perhaps teach it. :). Since you are way ahead of the game knowing the big picture, the question for you is---How are you going to profit or at least improve your life and financial position by understanding the current economic situation? What is the next step for you?

[johnnynovacaine]

None. I don't know what part of Europe you're from but I have EU citizenship and in a few years when the Obama/Bush hyperinflation begins....I'm cashing out and hitting the road.

I'm not hanging around here as unemployment shoots up over 20%.

Frankly I don't hold much loyalty to America anyway. Most of my family in this country are all really old or dead.(most didn't have children)

So if all else fails I could be joining you in Europe.

[scorpiusaries]

ha ha, me neither!

[dmix09]

oh no!! but my credit card has only a 12 trillion dollar limit!!!

lol =)

[hopeso]

Toxic debt,,, but where did the money go? Is there a money heaven or did someone steal this money?

[kimber1901]

When a bank lends you money to buy a million dollar house, they don't actually have the million dollars, and they don't actually send it to the person you are buying from, it's ones and zeroes electronically transfered. Banks don't lend real money, they think of the money you borrow as an asset that they can then sell on the open market, because you're going to pay it back, so it must be worth something, right?

[kimber1901]

The problem comes when homeowners use the instant equity from further rising housing prices (still being driven up by speculation) to finance a lifestyle that is beyond the means of their actual income. They figure they can either keep borrowing on the future growth of their houses value, or they'll sell and pay off all the debts. The problem is when this house of cards starts falling apart, and people can't pay back what they borrowed.

[kimber1901]

These banks' assets are no longer AAA safe investments (they never really were), and investors are no longer earning profits from these securities, because homeowners arent paying the mortgage. Now, no one wants them, so they're sit as "toxic assets" on banks balance sheets. They're hard to value because there's no way to know how many people in these bundled securities will actually pay and how many won't. They're worthless, so the Gov. is going to use our tax dollars to pick up the tab!

[hopeso]

I get it. There's a video on YT called,

"Money as debt"

[kimber1901]

Crazy, isn't it? Any other industry, and it's called fraud. Almost makes me want to open a bank, but I don't know if I could respect myself anymore. Maybe flying around in my jet would make me feel better...

[PavedStones]

@kimber1901 lol I want to open a bank too. I guess the jets, yachts and $100 million villas will compensate for not able to look at myself in a mirror

[ifc6969]

Just a suggestion, but if you are going to buy physical gold make sure you pay cash if you can. The latest FISA bill (for our protection, haha) now allows the government to track all credit card transactions. Considering the government has confiscated people's gold in the past I wouldn't put it past them to do it again. If you pay in cash there's no paper trail.

[Stealth0031]

Good point, but of course I sold all mine. At least that's my story and I'm sticking to it. ;)

[MainTightSqueeze]

That's OK Wall St, I'll bail you out.

[SMARTFREELINKSdotCOM]

I agree with Jimjass

[TYX91101]

Someone packaged my credit card debt? Well that's certainly good news.

[Stealth0031]

LOL!! Thanks, I needed that.

[silentonall]

Let's not forget the ALT-A mortgages which reset this year. Throw in another toxic trillion

[Stealth0031]

Yes, thanks. Good thing a trillion isn't much or we'd really be screwed. :)

[coach3majic]

oh dear - they make this public - but still not telling you about the derivitives

[jeffsst]

February will be the setting for the final stage! collapse is coming... gear up boys, its gonna be a bumpy fucking ride!

[Stealth0031]

You are correct sir.  Everyone (except possibly govt, bankers, and other bailed out execs) please remember we are in this together and we WILL survive. In the words of FeverIAm, "don't panic".

[jimjaas]

Lies lies lies.. Just think about this -

Top five (look at their screen and add) have, combined, less than $500B toxic assets and yet .. 25 top banks have, combined, $13 Trillion..?!

So 20% banks and top ones on the list, have less than 4% of all toxic from the list of 25 banks???

The truth is that Citi, JPMorgan and Co.. have much more toxic in their books. And those clowns from CNBC know it.

[jeffsst]

maybe the top five have allready dumped most on the taxpayers!

[panther9mm]

No, it just means that the next 20 smaller banks each have over 500B in toxic assets each. The big banks are strong, you don't have to worry about them.

[tito2b2]

2:00 taxpayers don't have to sholder shit. We can just stop paying taxes. Are they going to put 100 million americans in jail for tax evasion?? No taxation without representation. The Revolution lives!

RP 2012

[eyewitness043]

So Geithner and his Goldman cronies are going to accuse our biggest creditor - China - with currency manipulation right before they create a "bad bank" slush fund to launder the $13 Trillion in worthless debt while they make the entire world a witness to the crime.

Nice.

If you own any Obama stock, I'd recommend shorting it before you loose your ass.

[FeverIAm]

Good video - nice to know 'real' people are wakening to the depth of the troubles before us.

Peace

[Stealth0031]

Thanks --- And good to hear you are back online.

[monkeyman1140]

Here's a tip: If you have your money in a mega-bank, take it out! WHY are you rewarding bad behavior. There are tens of thousands of much smaller, more responsible banks that need your capital. they are the ones who in the future will be giving out loans, not these crooked banks run by criminals.

[Stealth0031]

Funny you mention this---I'm in the middle of moving my checking acct from Bk of Am to a smaller, possibly safer bank. Of course if we all move our money, they will probably get another bailout. :)

[DAcofd]

The $13T is on top of the $11T the gov. already owes other countries plus the $42T owed to the Social Security and Medicare funds. Add it all up and it's $66 trillion we're really on the hook for. I'm sure this is only the tip of the iceberg. Recall and impeach Washington.

[Stealth0031]

That's nice to know. :)

Yes, thank you, recall and impeach Washington. Eventually, this must happen. ...How about noon today? I really appreciate the comment. Thanks.

[RobTzu]

We do not owe the Social Security and Medicare trust funds 42 Trillion Dollars, nor do we 11 trillion to other countries. The national debt encompasses both those numbers and the bonds americans and institutions hold. The 42 trillion number is the unfunded liability which is meaningless. When I had a kid, I did not already have saved all the expenses for him. That did not make me bankrupt. Those costs will come out of future revenue, just like Social Security and Medicare will.

[DAcofd]

Actually the $11T is the deficit. It may be owed in the form of T-bills to other countries but it still remains an outstanding debt. The $42T is money owed to the SS and Medicare funds. We get money removed from our checks each week that goes into those funds. The money is paid out in benefits and there should be a surplus each year. The surplus has been spent by the gov. The amount owed into the funds is $42T to this point. That is the major reason the SS system is in so much trouble.

[Gonzo707]

You mean $11T (plus the extra entitlements you rightly poitn out) is the DEBT.

Deficit is the amount of yearly debt in the budget...that supposed to be around $2.2T for this coming year.

[fatmoleman]

As more baby boomers retire the more people take SS and Medicare and soon the system will be paying out more than it is taking in. The surpluses have been used to reduce and hide the true amount of the deficits but soon there will be no surplus and then the shit hits the fan. Watch the documentary IOUSA if you have not seen it.

[mojdfiv]

"They were fine at first, but no one knows what happened?" I think they were fine at first because people were paying morgages and loans they could afford. Then the banks got greedy with their adjustable rate morgages and doubled or in some cases tripled the payments they were charging and the people couldnt afford to pay it anymore. Greed on the banks part is what happened...

[Stealth0031]

I believe you are correct. But there is plenty of fault to go around. And it starts at the top. 20 yrs ago I processed mtg loans while working my way through school. Education was fairly priced and rules for loans were tight. The political push over the years to ease rules and our Govt to back Fannie Mae and Freddie Mac is the heart of the that particular problem. Thanks for the comment.

[RobTzu]

People making 40,000 a year trying to live in a 300,000 dollar house had nothing to do with it. Flippers, and speculators had nothing to do with it. The Fed driving down interest rates had nothing to do with it. A tax code that subsidized home loans had nothing to do with it. The community reinvestment act forcing banks to loan money to people with no hope of paying it back had nothing to do with it.

Banks making loans to poor people who will never pay the money back makes money how?

[mojdfiv]

Banks making adjustable rate loans that people can afford at first and doubling and tripling the payments the closer they get to paying it off. Its easy to blame the poor for bankers greed, I can't tell you how many people I know who are poor and made payments on time. Once they got a close to paying it off the banks changed rates and put payments out of their means to pay, then foreclose on the house to sell to the next sucker.

[mojdfiv]

My mothers situation is a prime example of this. She took out a loan with the understanding that is was a fixed rate loan. Apparently it wasn't because when she got the house about halfway paid off her payments increased from $575 a month to $1150. A year out from having the house paid for her payments increased again to $2300 a month. The bank has foreclose and is seeking someone else to buy it. Banks are making a fortune collecting payments then forclosing and reselling.

[RobTzu]

Thats impressive, most people take 30 years to pay off there homes. How many years did she pay 575 a month, and how much was the orginal loan for? Did she do due diligence on her morgtage paper work?

I just have a hard time feeling sorry for people that should have known better. The banks are not blameless, but neither are the sole, or in my mind primary ones to blame.

[panther9mm]

I have to agree with you. it is wallstreet 100%. those greedy bankers lending to innocent people just to make an extra 20 million.

Would you leave candy in a room with monkeys? You know they gonna cause hell.

[Strettger]

Because once the mortgate broker has done it with the bank, it is no longer his problem.

When the Bank sells the mortgate to an Investment Banker it is no longer his problem.

By mixing it up with proffitable mortgates, it becomes a 3 tiered CBO, top is AAA, mid is BBB and the bottom is not even bothered to be rated. Top is insured.

Then it's sold to investors, top to the cautions, mid to investors and bottom to hedge funds.

It is now their problem.

And the backlog everyone elses.

[eesloan4]

wow yea well when the final ones go dead there might be another huge market fall....gold will fall as everyone shits there pants and sells off there stuff then I will buy more gold.....and get depressed about how the country is falling apart

[Stealth0031]

You and me both---will be buying gold.

[eesloan4]

what a sick mess though.....yea I wonder if there will be one final throw before we hit bottom? and damn i wish i knew where gold is going to bottom.....anybody have any thoughts?

[Stealth0031]

Great question--- I have done much thinking on this one over the last few months and decided the following: 1) Don't expect to buy at the bottom, 2) Keep buying some gold/silver every month, 3) When the price takes a dip, buy. 4) Look at it this way---At some point, today's prices will look like a steal. Don't let this great opportunity get away.

...Also, check out videos from davincij15 if you have not already. He has created several videos on the subject. Godspeed.

[eesloan4]

yea we have got some on its lower levels during this chaos too....are you buying physical or electronic or both? kitco i think is good for the physical but i hear they are terribly slow....got any ideas on a good physical dealer?

[letitgothinkpositive]

fuck them i dont give a shit

[RobTzu]

Should read 13 TTTTrillion you have BBBBBillion.

[Stealth0031]

Thanks---If it were only that easy to change the total. :)

[RobTzu]

No kidding! Too bad magic wands only exist in fairy tales and politicians's imaginations.

[RobTzu]

Your title is erroneous.

[Stealth0031]

How so?