Written by Damon Geller

Big Banks Gamble with YOUR Money

But there’s one HUGE problem: When you sell insurance policies, you better hope that most buyers don’t need to collect on them. It’s just like earthquake insurance: as long as there’s no earthquake, insurance companies make a fortune on earthquake insurance. But as soon as there’s a massive earthquake, insurance companies suddenly go out of business and homeowners are left holding the bag. This is exactly why Warren Buffet called swaps financial WMDs – because they are as destructive as an atomic bomb.
And here’s what happened: When the housing bubble burst and millions of loans when bad, banks were suddenly on the hook to pay the swap-buyers hundreds of billions of dollars. And just like earthquake insurers, they didn’t have the money to pay them.
What’s worse, other financial institutions had all kinds of counterparty arrangements with these massive banks, so the whole entire system fell like a house of cards. And you, the American taxpayer, spent trillions of dollars to bail out the “Too Big to Fail” criminal banks. But not before the entire global economy collapsed during the 2008 crisis, costing average Americans trillions in their investments and retirement accounts.
History Is About to Repeat Itself – Only Worse
The scary truth is, nothing has changed. In fact, things are now MUCH worse than in 2008, despite Buffett’s warning. After YOU bailed out the banks and not a single banker was put in jail, the banks turned around and reopened the casino doors. Today, the largely unregulated credit default swap market is now a staggering $30 TRILLION and growing! How much is $30 trillion? Take a look:
U.S. Yearly Budget: $3.5 trillion
U.S. National Debt: $17 trillion
U.S. Stock Market: $23 trillion
Credit Default Swaps: $30 trillion
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