Great, does that mean the US taxpayer will pay us $ 112 Billion when Wall streets crappy Derivatives collapse on us?
Nah, didn’t think so!
… Which Will Lead to Bailouts and Encourage Even More Fraud
The government has allowed the amount of derivatives to reach 1.2 quadrillion dollars.
What is the government doing for an encore? Bailing out the derivatives clearinghouses.
As the Wall Street Journal reported yesterday:
Little noticed is that on Tuesday Team Obama took its first formal steps toward putting taxpayers behind Wall Street derivatives trading — not behind banks that might make mistakes in derivatives markets, but behind the trading itself. Yes, the same crew that rails against the dangers of derivatives is quietly positioning these financial instruments directly above the taxpayer safety net.