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|User Info||MF Global: The SERIOUS Issues Reach Mainstream Media; entered at 2011-12-08 10:11:46|
Registered: 2008-04-13 Burbank CA
Karl: "You folks who think this doesn't apply to banks are out of your mind.|
As long as there is an off-balance sheet liability out there and derivative contracts have preference over deposits you're at exactly the same risk."
Is there any bank that doesn't have off balance sheet liability, and are credit unions any better than banks as a place to deposit money needed for paying common monthly bills?
The unregulated derivatives bubble has reached 700 trillion, according to Zero Hedge, the other day. It is getting to seem as if one day we are going to wake up and find out that every account balance in every institution
is in fact ZERO, because every account balance is pledged as collateral for 700 trillion in derivatives.
It is one thing to stuff a few thousand dollars in a mattress, but what does someone with a million dollar retirement account do? And no, it's not me.