Geithner’s Legacy: The “0.2%” Hold $7.8 Trillion, Or 69% Of All Assets; And $212 Trillion Of Derivative Liabilities

If you want to know what that means consider this: You and I don’t hold any Derivatives. the 0.2% does. We only know of $ 212 Trillion according to this article but calculations about the “shadow banking world” Derivatives(the off the books money supplies which I might add would get our asses in jail if we did this) tell us there is about $1.2 Quadrillion worth of the buggers lying around in vaults being worthless after the bankster parasites pocketed their bonuses.

All these Derivatives would disappear and leave the banking industry in tatters if say Greece which after all is only 0.4% of Global GDP where to call it quits and start rebuilding their economy with a local currency and a clean slate allowing human beings living in that country to become the most important asset of their local economies again.

Banks, Corporations and international treaties would disappear over night. It would mean starvation, Mad Max terror and the end of easy living as we have to adapt to the need for local economies and locally produced food within a sustainable future. People would die by the million as planes and ships will no longer be able to provide long distance food distribution.

It will be ugly, devastating and ultimately cleansing to the planet but not something I would wish on anybody to have to go through.

The good news is that in this scenario the bankers would cop it too. If it becomes clear that it has been their machinations all along that caused the wars, the destruction and general mayhem around the globe and they having lost the trust of people in their fiat currency usury reign and they no longer have access to the paper wealth armies can’t be paid and soldiers can’t be bothered and most will try to take the side of the betrayed masses.

It happened in Rome, in France and it will happen again.

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As of this morning Tim Geithner is no longer Treasury Secretary. And while Tim Geithner’s reign of clueless pandering to the banks has left the US will absolutely disastrous consequences, an outcome that will become clear in time, the most ruinous of his policies is making the banks which were too big to fail to begin with, so big they can neither fail nor be sued, as the recent fiasco surrounding the exit of Assistant attorney general Lanny Breuer showed. Just how big are these banks? Dallas Fed’s Disk Fisher explains.

It is important to have an accurate view of the landscape of banking today in order to understand the impact of this proposal.

 

As of third quarter 2012, there were approximately 5,600 commercial banking organizations in the U.S. The bulk of these—roughly 5,500—were community banks with assets of less than $10 billion. These community-focused organizations accounted for 98.6 percent of all banks but only 12 percent of total industry assets. Another group numbering nearly 70 banking organizations—with assets of between $10 billion and $250 billion—accounted for 1.2 percent of banks, while controlling 19 percent of industry assets. The remaining group, the megabanks—with assets of between $250 billion and $2.3 trillion—was made up of a mere 12 institutions. These dozen behemoths accounted for roughly 0.2 percent of all banks, but they held 69 percent of industry assets.

What does this mean numerically?

As the most recent weekly H.8 statement shows, there was $11.25 trillion in total assets at domestically chartered commercial banks. Which means that just 12 banks now control some $7.76 trillion.

And that is Tim Geithner’s true legacy: the “0.2%” now control 69% of everything.

But wait, this is just the asset side. What about the liabilities that these assets support, and especially the over the counter derivative side?

Read more

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