Cenk, what we are watching is a Shadow Play that is covering for a good, old-fashioned Mexican Standoff.
The Banks say they are fine, showing profit ... doing better all the time, but, the thing is, under late 90's deregulation, the banks are allowed to hold their CDS exposure off the books. So the semi-miserable state the Banks are in is what is being portrayed, while the bank's catastrophic levels of exposure are out of sight. Basically, we are looking at two sets of books that tell different tales.
Why not just dump the Naked CDS Deals and call it a day? That's the 64 trillion dollar question. I believe there is a tremendous amount of fake wealth, supported by a pittance of actual wealth. This actual wealth is from the four corners of the world, and should the fake wealth collapse it would evaporate the real wealth with it ... the effect would be a level of ugly beyond belief with not just the little folks being devastated.
So in the small circle the Banks are looking at Wall Street, which is looking at the Fed, which is looking at the President, which is looking at the Treasury, etc ... while in the Great Circle the US is looking at England, looking at Japan, looking at the EU, looking at China ... each are waiting to see who will pull the trigger first.
We are living in interesting times.
About The Bailouts
Read the Article at HuffingtonPost
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