The Feds can't seize assets in the first place except on the basis of fraud or criminal activity, unless perhaps on the basis that the Federal reserve operates under the permission of Congress which is unlawful and Unconstitutional as well.
Even if the Government was allowed to seize private assets they certainly could not give the assets to a bank known to engage in fraud and known to have extensive exposure to risk. Jp Morgan Chase is the most insolvent bank at least according to public books the Fed has acknowledged they don't enforce debt ratio requirements against lenders like JP Morgan and Bank of America because according to the Fed and regulatory agencies they know the lenders have "other" meaning massive off the books assets. The Federal government is overtly acting like the Mafia saying we know this is illegal but we have to do it to protect the economy which is a big lie becuase they sponsered and covered up this crime every step of the way.
Re: Your bet, Mr Bernanke-$230 trillion (Not rated) 19-Oct-07 12:02 pm
>>one hell of a time to bluff...<<
FED will cut the Discount Rate within the next 60 days
Get ready to refinance during the down tic, after that it will have to go up for the lifetime of the boomers.
The housing bust is ugly, don't buy the story from those who have a self-interest in saying the bottom has been reached. Nearly $1 trillion in ARMs will get reset in the next 3 yrs.
The situation that is the root of the problem has been going on for a long, long time. The depression era folks with a good background in math and the how the government printing presses have pumped money into the system have been warning about what we are seeing today for a long time, unfortunately most have died off or are too feeble to continue to warn. I hope the worst fears of people from that generation do not materialize now, and maybe some of the controls will work.
Here is the real reason the FED cut the Discount Rate:
1. JPMORGAN CHASE BANK - $36,805,757,000,000 (Assets $628,662,000,000) Risk Ratio 58.5:1 ($58.54 of derivatives per $1 of assets). Credit exposure to Risk-Based Capital Ratio 844.6% OTC Derivatives 92.6%
2. BANK OF AMERICA - $14,869,220,000,000 (Assets $617,962,000,000) Risk Ratio 24:1 ($24.06 of derivatives per $1 of assets). Credit exposure to Risk-Based Capital Ratio 221.7% OTC Derivatives 83.4%
3. CITIBANK - $11,167,882,000,000 (Assets $582,123,000,000) Risk Ratio 19:1 ($19.18 of derivatives per $1 of assets). Credit exposure to Risk-Based Capital Ratio 267.1% OTC Derivatives 96.4%
4. WACHOVIA BANK - $2,326,465,000,000 (Assets $353,541,000,000) Risk Ratio 6.6:1 ($6.58 of derivatives per $1 of assets). Credit exposure to Risk-Based Capital Ratio 80.6% OTC Derivatives 70.2%
5. HSBC BANK USA - $1,353,741,000,000 (Assets $92,958,000,000) Risk Ratio 14.5:1 ($14.45 of derivatives per $1 of assets). Credit exposure to Risk-Based Capital Ratio 288.5% OTC Derivatives 88.7%
6. BANK ONE - $1,232,095,000,000 (Assets $256,787,000,000) Risk Ratio 4.8:1 ($4.79 of derivatives per $1 of assets). Credit exposure to Risk-Based Capital Ratio 58.7% OTC Derivatives 96.1%
7. BANK OF NEW YORK - $561,694,000,000 (Assets $89,258,000,000) Risk Ratio 6.3:1 ($6.29 of derivatives per $1 of assets). Credit exposure to Risk-Based Capital Ratio 77.7% OTC Derivatives 78.1%
8. WELLS FARGO BANK - $557,161,000,000 (Assets $250,474,000,000)
Risk Ratio 2.2:1 ($2.22 of derivatives per $1 of assets). Credit exposure to Risk-Based Capital Ratio 26.7% OTC Derivatives 66.3%
9. FLEET NATIONAL BANK - $443,708,000,000 (Assets $192,265,000,000) Risk Ratio 2.3:1 ($2.30 of derivatives per $1 of assets). Credit exposure to Risk-Based Capital Ratio 20.2% OTC Derivatives 64.1%
10. STATE STREET BANK - $369,843,000,000 (Assets $80,435,000,000) Risk Ratio 4.6:1 ($4.59 of derivatives per $1 of assets). Credit exposure to Risk-Based Capital Ratio 161.0% OTC Derivatives 89.2%
JPMORGAN CHASE is far past the point of no return. To put it in simple terms, JPMORGAN CHASE, BANK OF AMERICA, CITIBANK, and HSBC are already insolvent many times over. They have no liquidity, yet they are still operating as if they do.
This has now gone way beyond the imminent bursting of the US financial debt bubble... it has become an explosive financial weapon of mass destruction.
awful/not related to \pooraveragegoodexcellent