Many people are furious that the Federal Reserve and Bank of America have initiated a coup to dump billions of dollars of losses on the American people (and see this).
Many are suggesting that the “Occupy” protesters rally to stop this robbery.
One of the top stories currently on Reddit (one of the top social media sites), is:
I understand that the Occupy protesters are, in fact, currently debating making a statement on this theft.
Currently, there are two competing draft statements. This one is from someone very savvy on understanding how the average American thinks:
A portion of the 53 trillion dollars of derivatives (yes that’s with a t, about the size of the entire global economy) transferred to Bank of America’s parent company from Merrill Lynch in 2008 has recently been transferred to Bank of America.
Derivatives contracts in a bank are paid before anyone else gets paid.
Therefore, these derivatives contracts would be paid before depositors receive their money. These people just cut in front of you.
It’s very simple, the reason that banks and trading houses were originally separated was to prevent this sort of thing. What’s really going to happen is that the government is going to end up bailing out the FDIC … so this will end up being a government bailout.
You’ll end up getting shafted, either by derivatives holders cutting in front of you or by your having to bail out the FDIC so it can bail out banks depositors. Either way, this is yet another instance of looting by the big banks and big government.
Just say no … don’t let this stand.
And this one is from two people who are experts on the technical issues involved:
We denounce Bank of America’s transfer of high risk derivatives to its federally insured accounts. This is yet another example of systemically dangerous institutions, big banks like BofA and JPM, once again attempting to shift potentially substantial losses onto the backs of hardworking Americans. The fact that the Federal Reserve supports this action demonstrates Ben Bernanke’s complicity and/or gross incompetence in supporting the Wall Street elite at the expense of tax paying citizens.
Updates as they develop …
George Washington for ZeroHedge