Investment Banks Can never fail - new rule !

http://www.charlierose.com/guests/paul-volcker


Investment banks are larger than commercial banks. Due to there derivatives connections. Investment banks are like bookies they hold the paper of the bet and make money on the spread, but if one goes bust the other side cant be paid.

Therefore they cant be allowed to fail.

What a nice business to be in !

 

Whats with the black eye?

 

Everyone should consider the possibility that this whole system fails.

 

What if..
- Housing market falls 20%
- USA recession thats is a very hard landing

Then..

Citigroup fails - 100 trillion ( dunno ) of derivatives..then what !!

 

let's unwind this garbage and then throw these bums out

 

simple: bernanke buys all the underwater mortgages, and prints 1 trillion dollars and hands it to citigroup. then market cheers about what a great job he's doing.

 

What about the other 99 trillion?

 

Its the Gummints "no bank left behind" program.