Bank Stress Test Results LEAKED!!!

its all about derivatives. if you think the real estate bubble was bad wait until the derivatives bubble bursts. its worth 1 quadrillion dollars or something astronomical like that. of course the banks are insolvent, do we really need a stress test to tell us that. the banks have just blew threw trillions of dollars and nothing has gotten better. now if this leak is true,will the real results be told to us or will it be more lies to rob us of whatever we have left?

reply to post by ClintK


I worry Obama will stick to his promise and be transparent. He will probably have a live news conference declaring that the Globeal Economy has gone Bankrupt.

This would set off world wide panic and they would need to declare a national emergency, requiring martial law.

I'm not sure some have been following the new Homeland Security threats Me and you for starters and laws pertaining to them.

It's a bit scary.

reply to post by St Udio




Volcker knows finances probably better than most. He will be advising in the background. He pulls a lot of strings. I am opposed to Vockers agenda.

reply to post by Manawydan

The more I think about it the more I think the Fed is the only one to gain from companies going from bad to worse. Weren't the Fed given almost unsupervised power for bailing out companies in exchange for their stock? So the privately owned Fed, leaks its own report, waits for the stock market to open and "helps" a few companies into becoming their owners using the money only they can issue.

How wrong am I on this? Very I hope.

Hope will not save us.

PROBLEM > Banks continue to be insolvent, exposure worse than expected, stress models testing for unemployment scenarios that have already been surpassed, etc.

REACTION > People panic, stocks plummet, mood of no confidence buries economy even further, banks need more money but none is to be had.

SOLUTION > The fed and select mega-banks swoop in and buy up faltering banks for pennies on the dollar. Bilking the taxpayer and achieving the mass consolidation that was the original goal of this orchestrated panic.

reply to post by AlienChaser


couldn't of said it better!!!!

So leme get this straight .....

Banks are loaning money they don't have!
getting interest and principal on money they didn't have to loan in the first place!
Getting tax payer bailouts in the BILLIONS!
Charging the depositor to take there money out of the banks after they deposit it!
Charging the same depositors to CHECK on there money, ATM fees etc... !
Giving the executives of these banks ridicules amounts of money even when the bank fails (still don't even see how this is possible!!!!)

A company / Bank who sell something / charges a service of 900+% about cost and can't survive ... is pure THEFT!!! especially in a rigged market.

The simple fact is we the people and the government letting them do this is a CRIME.

People have really lost control of the car here, we are along for a ride and no one is DRIVING.......................... this can not end well.

I know who Hal Turner is, but I don't read his site or listen to his radioshow. The sad thing is that we have a MSM that is so intertwined with both Wall St. and DC that they haven't done any real digging yet into this crap. Because of this people like Turner get attention. From what I've seen of him, he seems pretty slimy. Some of his racial views are pretty offensive and I've seen evidence of him plagiarizing other blogers . If he has the actual leaked results he should post them in full.

That being said what he's saying is only slightly worse than what I think they would be. Others have pointed out that April 10th Bloomberg article saying that banks were told not to release any results during earnings. That looks like the line to follow on this story, "How can you delay releasing something you (C GS JPM) already have?". I think that is the line to follow and seems like we have caught Treasury in a lie.

The logic is cosmic - borrow huge sums and record breaking leverage to fix the bad debt - wow.

The greatest problem facing the US prior to this meltdown was the debt problem - 11trillion.

The cure for alcohol addiction appears to be permanent binge drinking.

The derivatives 1.5 quadrillion bubble is not taking into consideration the cover which has been taken out, it is a gross figure rather than a net figure, the net figure is only 568 trillion - about 100 times world GDP - like thats MUUUUUUUCH better, its scarier becuase its the absolute truth rather than some scaremongering figure.

The great depression was preceded by a massive rally before the final collapse - I see this as recent rally as the impending implosion.

Even though it looks darkest before the dawn. Ive been doing a killing in
the currency exchange market. It was a good ride today geting in on the 255 pip sellers market. I made alot of lettuce. But then Ive been doing this for 10 years. So its not all doom & gloom. You just have to get out there and grab what you want. You can't always look at the news as bad, is the glass half full or half empty? If your waiting for a bottom, there isn't one. Were on down slope, might as well grab what you can on the way down. As for the banks going down the tubes. Never going to happen.
So go get some of the america dream, and think positive for a change.

FeverIAm talks about this in his latest, but does not address the fact that Turner is a racist and a xenophobe:

Welcome to the modern world of Finance. These stastics are Normal for banks, THATS HOW THEY WORK!

You are applying normal business principles of debt vs income for a business or personal finance to that of how Banks Operate.You can't do that.

This is how this DIRTY thing called finance has been set up by MAN.-which means it will fall and crash some day.

Banks are able to raise finance of up to 10 times their assest value (some have loaned higher than that). Its all a numbers game. The bank does not consume and use the cash they loan, they give it to you and me and businesses who in turn pay interest and the Capital back.

To raise money from assets financed with them,like your $200,000 home.They can use that as collateral and against this raise another $2Mill to loan out and so it goes on. Because the $2Mill will most Likely be loaned and split up amoung numerious lenders, its deemed to be safe to say that most all will pay back their loans and interest. (Think on a bigger scale of lending and not on my example-say $1Trillion).

When some banks got into using sub prime loans as collateral. i.e loans that were not A Rated. and people with sub prime loans could not pay the stepped interest rate increase..Sh#t hit the fan and caused the current Financial problem we in (There is a little more to the story-This is a Nut shell version).

We later (recently since Nov 2008) Gave up all our Vehicle finance debt and Credit card debt as security for more money that is currently being spent-Or spent already.

The latest 1,2 Trillion has no security attached -It is just being printed-Hot off the press.....With most countries it should de-value the currency, but it will have little effect on the U.S as we are the world super power in spending and are the world largest consumer.

They most Likely have already mentioned something somewhere to the "powers that run the economic world" that this money will be recovered through More Taxes over a period of time.

But in saying that we can't keep doing that....I'm guessing the Amerio is our back door if the currency goes "south".

If True we are in deep.
Those numbers are mind boggling.

total credit exposure to derivatives

Bank of America 179 percent
Citibank`s 278 percent
JPMorgan Chase`s, 382 percent
HSBC America`s 550 percent
Goldman Sachs 1,056 percent

Is that basically saying, Goldman Sach's has 1056% worth of debt, compared to capital to be able to pay it off?

Wait a second..

Where is the copy of this document if he has this information?

Lets get another thing straight, if this was actually leaked April 10 the

KBW Banking Index Climed from 29.4 to 37 - then the selloff of today still above that point though..

If hedge funds/institutions/real players had this document in their hand last friday/monday/tuesday/wednesday that index would be at 10 right now (and thats saying if that would even effect this market, because of the way it is viewed)

So this brings me to my other theory. This was released last friday and everyone is in the know (THAT COUNTS) and it hasnt effected the market.

Also, just because the FED has this, does not mean the US Treasury has this (if they are following procedures)

I think this is all rumor BS/ Or information that will not affect the markets.

This is real information you can trust, not some BS propaganda, and no im not a disinfo agent


EDIT : and when banks are bad they are technically insolvent as per history... trust in america

[edit on 20-4-2009 by GreenBicMan]

reply to post by Agit8dChop


no... a derivative does not mean debt

this means that if things are stacking up for them they could potentially profit huge in the right environment (more risk more gain) and trust me, the people that run GOLDMAN SACHS dominatethis market no matter what anyone thinks, they run 30-50% of the show you watch everyday

[edit on 20-4-2009 by GreenBicMan]

This is nothing knew, Just another Hush up Job in which to mingle Time more.. I realized this the second gietner came out and said the Results where to be Stalled from being public.

any positive news on these tests would have been positives to the everloveing Market. and would have actually added some sence of Relief to the never ending downturn that is displayed daily ... Hence this would actually be good for the economy... Obviously thats out of the picture.

The market is nothing more then burst gains.. Buy in when in low 7's take out in high 8's. unfortunetly this is drawing more attention to money to put into this market then to be spent at our stores.. Hence the consistant decline that looks to have no stabilization.

I still believe they will find a buffer point to last a few more months down the road though.

Originally posted by Bldrvgr

any positive news on these tests would have been positives to the everloveing Market. and would have actually added some sence of Relief to the never ending downturn that is displayed daily ... Hence this would actually be good for the economy... Obviously thats out of the picture.

see my above post - as well as the biggest 5 week gain since the 1920-30's in the markets - so you are obviously well informed

The market is nothing more then burst gains.. Buy in when in low 7's take out in high 8's. unfortunetly this is drawing more attention to money to put into this market then to be spent at our stores.. Hence the consistant decline that looks to have no stabilization.

markets are forward looking, if they are going into equities, look for a rebound in retail 6 months down the line.. and again, what constant decline are you speaking of?

I still believe they will find a buffer point to last a few more months down the road though.

see above post

Originally posted by GreenBicMan

Originally posted by Bldrvgr

any positive news on these tests would have been positives to the everloveing Market. and would have actually added some sence of Relief to the never ending downturn that is displayed daily ... Hence this would actually be good for the economy... Obviously thats out of the picture.

see my above post - as well as the biggest 5 week gain since the 1920-30's in the markets - so you are obviously well informed

The market is nothing more then burst gains.. Buy in when in low 7's take out in high 8's. unfortunetly this is drawing more attention to money to put into this market then to be spent at our stores.. Hence the consistant decline that looks to have no stabilization.

markets are forward looking, if they are going into equities, look for a rebound in retail 6 months down the line.. and again, what constant decline are you speaking of?

I still believe they will find a buffer point to last a few more months down the road though.

see above post

Um - not sure if you are actually saying anything ? The gains which were realised by Goldman and Citi bank have already been brought into question and realised as false - their own admission as they clearly stated there would be further write downs. This gain has been put down directly to shorts.

Further there were only 19 banks involved, and interestingly there was highly dubious profit taking and then another slump. So.......where ya heading ?

Originally posted by GreenBicMan
reply to post by Agit8dChop

 

no... a derivative does not mean debt

this means that if things are stacking up for them they could potentially profit huge in the right environment (more risk more gain) and trust me, the people that run GOLDMAN SACHS dominatethis market no matter what anyone thinks, they run 30-50% of the show you watch everyday

[edit on 20-4-2009 by GreenBicMan]

Yes, yes it does mean debt as there is clearly not going to be some rally which brings us back to where these long term derivatives came from - clearly - that is why the term EXPOSURE was used. The EXPOSURE which the banks have on their derivatives.

The gross derivative market is estimated at 1.1quadrillion, however this is of course offset to minimise the exposure as is repeatedly stated round here, this leaves net global exposure to these debt vehicles at around 500 trillion. WOW.

The derivatives market was banned from 1932 (guess why...) to around 1983 when Reagan reintroduced them, and then under Bush they were deregulated and insured.

Originally posted by audas
The gross derivative market is estimated at 1.1quadrillion, however this is of course offset to minimise the exposure as is repeatedly stated round here, this leaves net global exposure to these debt vehicles at around 500 trillion. WOW.

I agree with you, but the number is actually significantly higher than 500 trillion.

If you go to the BIS, (Bank for International Settlements) own website and view their statistics on outstanding derivatives contracts domestically and globally you will see that their last number (which was published in June '08...this obviously leaves a WIDE margin for significantly higher numbers) to actually be in the vicinity of 683 trillion!

View the Outstanding Contracts Here

There you will see that outstanding amounts :

June 2006 had a total of 370,178 billion (or ~ 370 Trillion)
December 2006 had a total of 414,845 billion (or ~ 414 Trillion) 12.0664% growth
June 2007 had a total of 516,407 billion (or ~ 516 Trillion) 24.4820% growth
December 2007 had a total of 595,341 billion (or ~ 595 Trillion) 13.2600% growth
June 2008 had a total of 683,725 billion (or ~ 683 Trillion) 12.9268% growth

Since the numbers stop in June 2008, based upon the Average growth percentage which would be 15.6838%

December 2008 should have been ~ 790,959 billion (or 791 Trillion)
and finally
June 2009 SHOULD be in the neighborhood of 915,011 billion (or 915 Trillion)


Obviously these number don't reflect reality, only best guess based upon averages. But up to June '08 it IS accurate, and if the projections following are anywhere NEAR accurate, they are some seriously scary numbers to me anyway.


AB1

wow wow wow I'm really scared, what should I do with the money I have saved in my bank? Should I take them all out?