….and it’s depositors. There’s not enough attention being paid to the shift of Bank of America’s CDS (credit default swap) portfolio from its uninsured investments to its FDIC insured commercial banking account. In plain language this means if Bank of America goes bankrupt (and this is practically assured at this point), YOU the depositors are second in line behind approximately $50 TRILLION in CDS. It means that those investors of CDS will be paid by the FDIC before YOU are. In order to make it even possible for the FDIC to pay those investors, they will have to use taxpayer funds. So far, this is just Bank of America, but since this required absolutely no public disclosure or discussion, nor did your Member of Congress get to vote on this, how long will it be before the rest of the banks leveraged up to their eyeballs do the exact same thing? The best way to describe the overall concept is: Taxation Without Representation.
Are we having fun yet?
Just listen to Reggie Middleton from BoomBustBlog explain our situation:
Yes, we’ve all been bamboozled, that’s for sure. We’re also being raped and robbed.