So somehow, money-center and investment banksters found a way to float debt instruments and securities on 20% of absolutely everything that is worth anything on the planet.
How in the hell did they do that? They don't have title!
Then they pocketed fees .... took bonuses .... took capital-gains treatment on their comp packages .... and drove down to the yacht basin in their Lamborghinis, to hoist hook and get underway for Cayman Brac and untouchability.
My own estimate would be that they have hypothicated more than $1Q. This according to estimates of all derivatives alone running more than 1Q. Some derivatives could be offseting though.
Conceptually, the -Reserve- and I’d assume other fiat bankers in the world can re-leverage without association to a maximum real value. They are re-leveraging their own loans as a system.
So somehow, money-center and investment banksters found a way to float debt instruments and securities on 20% of absolutely everything that is worth anything on the planet.
How in the hell did they do that? They don’t have title!
It’s worse than that. With fractional reserve banking we now have fractional reserve investing in derivatives and government backed securities. It’s the biggest ponzi scheme imaginable!