Jamie Dimon Screwed the American people and all the Thanks He Gets is Throat Cancer

[Toddsterpatriot]

One more thing, Todd. Interest rate swap scam, the biggest bankster scam, works like this. The medium sized private company goes to a TBTF bank for a loan. The company or government agency, in order to get the loan, must take one side of a swap. They take the fixed higher rate and the bank "gambles" and takes the low rate that is floating. But the Fed always watches the backs of the banks and the swaps nearly always win for them, unless LIBOR gets higher than the swap rate, which is what happened in the Great Recession.

The medium sized private company goes to a TBTF bank for a loan. The company or government agency, in order to get the loan, must take one side of a swap.

A loan isn't a swap.

They take the fixed higher rate and the bank "gambles" and takes the low rate that is floating.

I guess you could say that deposit accounts have a floating rate. So what? That still isn't a swap.

But the Fed always watches the backs of the banks and the swaps nearly always win for them,

Most interest rate swaps have banks on both sides of the trade. Do you feel the Fed makes both sides win?

I know the loan is not a swap. But to qualify for the loan, the company is forced to take a swap. Banks are predominantly on the floating, low interest side of the trade because the government or medium sized business fears the floating rate, fearing inflation and rising interest rates that never come! PIMCO Investment Basics - What Are Interest Rate Swaps and How Do They Work

From Pimco:
The counterparties in a typical swap transaction are a corporation, a bank or an investor on one side (the bank client) and an investment or commercial bank on the other side. After a bank executes a swap, it usually offsets the swap through an interdealer broker and retains a fee for setting up the original swap. If a swap transaction is large, the interdealer broker may arrange to sell it to a number of counterparties, and the risk of the swap becomes more widely dispersed. This is how banks that provide swaps routinely shed the risk, or interest-rate exposure, associated with them.
Initially, interest rate swaps helped corporations manage their floating-rate debt liabilities by allowing them to pay fixed rates, and receive floating-rate payments. In this way, corporations could lock into paying the prevailing fixed rate and receive payments that matched their floating-rate debt. (Some corporations did the opposite – paid floating and received fixed – to match their assets or liabilities.) However, because swaps reflect the market’s expectations for interest rates in the future, swaps also became an attractive tool for other fixed-income market participants, including speculators, investors and banks.

As a result, the swap market has grown immensely in the past 20 years or so; the notional dollar value of outstanding interest rate swaps globally was $230 trillion at the end of 2006, according to the Bank for International Settlements. Swap volume is termed “notional” because principal amounts, although included in total swap volume, are never actually exchanged. Only interest payments change hands in a swap, as described below.

But to qualify for the loan, the company is forced to take a swap.

Okay, a company borrows $100,000 at 5% for 2 years. What does the swap agreement say? Spell it out.

Banks are predominantly on the floating, low interest side of the trade.

Why do you feel banks need to be on the floating side? Most of their loans are fixed.
They would prefer their liabilities to be fixed as well.

After a bank executes a swap, it usually offsets the swap through an interdealer broker and retains a fee for setting up the original swap.

Look at that, the bank is on both sides of the swap, not predominantly on the floating side.

Banks, if you look at my chart, are predominantly on the floating, LIBOR side of the swap. You can see what happened to the banks when LIBOR spiked. They became insolvent. IT IS A SCAM. So they take the other side once in awhile to make it look like it is a free market. Lol. You are naive. Look at the damn chart: Examples of Globalization Austerity Is Placed on America in Three Crucial Ways

Banks lend mostly fixed. It they could, they'd prefer to borrow fixed.
They don't need any more exposure to floating rates. If I bothered to click on your blog,
it would probably show that you're misreading the chart.

But to qualify for the loan, the company is forced to take a swap.
Okay, a company borrows $100,000 at 5% for 2 years. What does the swap agreement say? Spell it out.
Or did you realize your error?

I am not going to argue with you. If you look at the chart you will see that when the floating exceeded the fixed, the banks crumbled. If you can't see it perhaps you should focus on something else.

Post your chart here and I'll take a look.
And tell me more about these forced swap agreements. Should be funny.

 

[Gary Anderson]

You're a fan of state banks? LOL!

You do have to give him 10 Points for Consistency, Todd.

Gary is a certifiable moonbat.

Just because you don't understand finance, don't embarrass yourself. You are letting the world know that you are stupid.

You have no idea what I understand. I work in Finance, and suspect I know far more than you do. You're a sideliner opinionator, and not a very good one at that.

You are right. I have no idea what you understand, but you don't obviously understand my chart about LIBOR and Fixed Rates. Lol.

I didn't bother to read it - your posts are boring.

And as I have noted in another post: you are here spamming the board to sell your ebooks. If you were honest, you'd pay the owners for using up space with your infomercials.

I am not going to comment on your posts other than to point out that you are a spammer, a troll, and a moonbat.

I plan on contributing to the website. But if you don't look at the chart, you are somewhat of a Luddite.

 

[Derideo_Te]

Gary has the facts right about the Wall St Casino scam when it came to funding the mortgage bubble and ripping off the mainstay of middle class wealth and destroying the economies of smaller nations.

As far as the "zionist conspiracy" BS goes Gary is on his own there.

Greed is enough of a motivator for the Wall St Casino bosses to run that Ponzi scheme without any "conspiracy" involved in my opinion.

 

[boedicca]

You're a fan of state banks? LOL!

You do have to give him 10 Points for Consistency, Todd.

Gary is a certifiable moonbat.

Just because you don't understand finance, don't embarrass yourself. You are letting the world know that you are stupid.

You have no idea what I understand. I work in Finance, and suspect I know far more than you do. You're a sideliner opinionator, and not a very good one at that.

You are right. I have no idea what you understand, but you don't obviously understand my chart about LIBOR and Fixed Rates. Lol.

I didn't bother to read it - your posts are boring.

And as I have noted in another post: you are here spamming the board to sell your ebooks. If you were honest, you'd pay the owners for using up space with your infomercials.

I am not going to comment on your posts other than to point out that you are a spammer, a troll, and a moonbat.

I plan on contributing to the website. But if you don't look at the chart, you are somewhat of a Luddite.

Just because you post something places no obligation on anyone here to read it, bub.

 

[boedicca]

Gary has the facts right about the Wall St Casino scam when it came to funding the mortgage bubble and ripping off the mainstay of middle class wealth and destroying the economies of smaller nations.

As far as the "zionist conspiracy" BS goes Gary is on his own there.

Greed is enough of a motivator for the Wall St Casino bosses to run that Ponzi scheme without any "conspiracy" involved in my opinion.

I agree that we have a Corporate Cronyist system..and our government is a Co-Conspirator. As long as the Feds control $Ts of tax money; and the Federal Reserves exists, it's not going to get any better.

 

[Gary Anderson]

One more thing, Todd. Interest rate swap scam, the biggest bankster scam, works like this. The medium sized private company goes to a TBTF bank for a loan. The company or government agency, in order to get the loan, must take one side of a swap. They take the fixed higher rate and the bank "gambles" and takes the low rate that is floating. But the Fed always watches the backs of the banks and the swaps nearly always win for them, unless LIBOR gets higher than the swap rate, which is what happened in the Great Recession.

The medium sized private company goes to a TBTF bank for a loan. The company or government agency, in order to get the loan, must take one side of a swap.

A loan isn't a swap.

They take the fixed higher rate and the bank "gambles" and takes the low rate that is floating.

I guess you could say that deposit accounts have a floating rate. So what? That still isn't a swap.

But the Fed always watches the backs of the banks and the swaps nearly always win for them,

Most interest rate swaps have banks on both sides of the trade. Do you feel the Fed makes both sides win?

I know the loan is not a swap. But to qualify for the loan, the company is forced to take a swap. Banks are predominantly on the floating, low interest side of the trade because the government or medium sized business fears the floating rate, fearing inflation and rising interest rates that never come! PIMCO Investment Basics - What Are Interest Rate Swaps and How Do They Work

From Pimco:
The counterparties in a typical swap transaction are a corporation, a bank or an investor on one side (the bank client) and an investment or commercial bank on the other side. After a bank executes a swap, it usually offsets the swap through an interdealer broker and retains a fee for setting up the original swap. If a swap transaction is large, the interdealer broker may arrange to sell it to a number of counterparties, and the risk of the swap becomes more widely dispersed. This is how banks that provide swaps routinely shed the risk, or interest-rate exposure, associated with them.
Initially, interest rate swaps helped corporations manage their floating-rate debt liabilities by allowing them to pay fixed rates, and receive floating-rate payments. In this way, corporations could lock into paying the prevailing fixed rate and receive payments that matched their floating-rate debt. (Some corporations did the opposite – paid floating and received fixed – to match their assets or liabilities.) However, because swaps reflect the market’s expectations for interest rates in the future, swaps also became an attractive tool for other fixed-income market participants, including speculators, investors and banks.

As a result, the swap market has grown immensely in the past 20 years or so; the notional dollar value of outstanding interest rate swaps globally was $230 trillion at the end of 2006, according to the Bank for International Settlements. Swap volume is termed “notional” because principal amounts, although included in total swap volume, are never actually exchanged. Only interest payments change hands in a swap, as described below.

But to qualify for the loan, the company is forced to take a swap.

Okay, a company borrows $100,000 at 5% for 2 years. What does the swap agreement say? Spell it out.

Banks are predominantly on the floating, low interest side of the trade.

Why do you feel banks need to be on the floating side? Most of their loans are fixed.
They would prefer their liabilities to be fixed as well.

After a bank executes a swap, it usually offsets the swap through an interdealer broker and retains a fee for setting up the original swap.

Look at that, the bank is on both sides of the swap, not predominantly on the floating side.

Banks, if you look at my chart, are predominantly on the floating, LIBOR side of the swap. You can see what happened to the banks when LIBOR spiked. They became insolvent. IT IS A SCAM. So they take the other side once in awhile to make it look like it is a free market. Lol. You are naive. Look at the damn chart: Examples of Globalization Austerity Is Placed on America in Three Crucial Ways

Banks lend mostly fixed. It they could, they'd prefer to borrow fixed.
They don't need any more exposure to floating rates. If I bothered to click on your blog,
it would probably show that you're misreading the chart.

But to qualify for the loan, the company is forced to take a swap.
Okay, a company borrows $100,000 at 5% for 2 years. What does the swap agreement say? Spell it out.
Or did you realize your error?

I am not going to argue with you. If you look at the chart you will see that when the floating exceeded the fixed, the banks crumbled. If you can't see it perhaps you should focus on something else.

Post your chart here and I'll take a look.
And tell me more about these forced swap agreements. Should be funny.

The chart is consistant with PIMCO's analysis. I put it together at FRED: Examples of Globalization Austerity Is Placed on America in Three Crucial Ways The image is saved to my computer but you need an image URL to submit it directly to the forum.



Not sure how to post it. But the point is, the banks only survive if the floating side wins. That is a massive scam against the taxpayer for one and savers who could lose money, and America in general.

 

[Derideo_Te]

Gary has the facts right about the Wall St Casino scam when it came to funding the mortgage bubble and ripping off the mainstay of middle class wealth and destroying the economies of smaller nations.

As far as the "zionist conspiracy" BS goes Gary is on his own there.

Greed is enough of a motivator for the Wall St Casino bosses to run that Ponzi scheme without any "conspiracy" involved in my opinion.

I agree that we have a Corporate Cronyist system..and our government is a Co-Conspirator. As long as the Feds control $Ts of tax money; and the Federal Reserves exists, it's not going to get any better.

Technically the Federal Reserve is not part of the government however it is part of the problem.

Ever since the Contract on America allowed corporations to write the legislation that Congress passes we have been lurching from one serious financial crisis to another. This boom-and-bust cycle is merely how the Wall St Casino is strip mining the wealth of this nation. Time to pull the plug and put them back into their gilded cage and if that means confiscatory tax rates then sobeit. We the People have been bled dry and there isn't any other way to keep the ship of state of afloat in my opinion.

 

[Toddsterpatriot]

One more thing, Todd. Interest rate swap scam, the biggest bankster scam, works like this. The medium sized private company goes to a TBTF bank for a loan. The company or government agency, in order to get the loan, must take one side of a swap. They take the fixed higher rate and the bank "gambles" and takes the low rate that is floating. But the Fed always watches the backs of the banks and the swaps nearly always win for them, unless LIBOR gets higher than the swap rate, which is what happened in the Great Recession.

The medium sized private company goes to a TBTF bank for a loan. The company or government agency, in order to get the loan, must take one side of a swap.

A loan isn't a swap.

They take the fixed higher rate and the bank "gambles" and takes the low rate that is floating.

I guess you could say that deposit accounts have a floating rate. So what? That still isn't a swap.

But the Fed always watches the backs of the banks and the swaps nearly always win for them,

Most interest rate swaps have banks on both sides of the trade. Do you feel the Fed makes both sides win?

I know the loan is not a swap. But to qualify for the loan, the company is forced to take a swap. Banks are predominantly on the floating, low interest side of the trade because the government or medium sized business fears the floating rate, fearing inflation and rising interest rates that never come! PIMCO Investment Basics - What Are Interest Rate Swaps and How Do They Work

From Pimco:
The counterparties in a typical swap transaction are a corporation, a bank or an investor on one side (the bank client) and an investment or commercial bank on the other side. After a bank executes a swap, it usually offsets the swap through an interdealer broker and retains a fee for setting up the original swap. If a swap transaction is large, the interdealer broker may arrange to sell it to a number of counterparties, and the risk of the swap becomes more widely dispersed. This is how banks that provide swaps routinely shed the risk, or interest-rate exposure, associated with them.
Initially, interest rate swaps helped corporations manage their floating-rate debt liabilities by allowing them to pay fixed rates, and receive floating-rate payments. In this way, corporations could lock into paying the prevailing fixed rate and receive payments that matched their floating-rate debt. (Some corporations did the opposite – paid floating and received fixed – to match their assets or liabilities.) However, because swaps reflect the market’s expectations for interest rates in the future, swaps also became an attractive tool for other fixed-income market participants, including speculators, investors and banks.

As a result, the swap market has grown immensely in the past 20 years or so; the notional dollar value of outstanding interest rate swaps globally was $230 trillion at the end of 2006, according to the Bank for International Settlements. Swap volume is termed “notional” because principal amounts, although included in total swap volume, are never actually exchanged. Only interest payments change hands in a swap, as described below.

But to qualify for the loan, the company is forced to take a swap.

Okay, a company borrows $100,000 at 5% for 2 years. What does the swap agreement say? Spell it out.

Banks are predominantly on the floating, low interest side of the trade.

Why do you feel banks need to be on the floating side? Most of their loans are fixed.
They would prefer their liabilities to be fixed as well.

After a bank executes a swap, it usually offsets the swap through an interdealer broker and retains a fee for setting up the original swap.

Look at that, the bank is on both sides of the swap, not predominantly on the floating side.

Banks, if you look at my chart, are predominantly on the floating, LIBOR side of the swap. You can see what happened to the banks when LIBOR spiked. They became insolvent. IT IS A SCAM. So they take the other side once in awhile to make it look like it is a free market. Lol. You are naive. Look at the damn chart: Examples of Globalization Austerity Is Placed on America in Three Crucial Ways

Banks lend mostly fixed. It they could, they'd prefer to borrow fixed.
They don't need any more exposure to floating rates. If I bothered to click on your blog,
it would probably show that you're misreading the chart.

But to qualify for the loan, the company is forced to take a swap.
Okay, a company borrows $100,000 at 5% for 2 years. What does the swap agreement say? Spell it out.
Or did you realize your error?

I am not going to argue with you. If you look at the chart you will see that when the floating exceeded the fixed, the banks crumbled. If you can't see it perhaps you should focus on something else.

Post your chart here and I'll take a look.
And tell me more about these forced swap agreements. Should be funny.

The chart is consistant with PIMCO's analysis. I put it together at FRED: Examples of Globalization Austerity Is Placed on America in Three Crucial Ways The image is saved to my computer but you need an image URL to submit it directly to the forum.



Not sure how to post it. But the point is, the banks only survive if the floating side wins. That is a massive scam against the taxpayer for one and savers who could lose money, and America in general.

If the image is on your blog, right click on it and copy the URL.
Post the URL and add [ IMG ] to the front and [/ IMG] to the back of the URL. Without the extra spaces.
Preview it, but that should work.

 

[boedicca]

Technically the Federal Reserve is not part of the government however it is part of the problem.

Ever since the Contract on America allowed corporations to write the legislation that Congress passes we have been lurching from one serious financial crisis to another. This boom-and-bust cycle is merely how the Wall St Casino is strip mining the wealth of this nation. Time to pull the plug and put them back into their gilded cage and if that means confiscatory tax rates then sobeit. We the People have been bled dry and there isn't any other way to keep the ship of state of afloat in my opinion.

The President appoints the Fed Chariman, so the separation between bank and state is defacto non-existent.

Corporate Cronies have been writing laws and regulations via regulatory capture for decades. The Contract With America didn't start that trend.

Our problem is that the Federal Government is now Too Big To Succeed. Congress doesn't write and pass proper, understandable laws (cf. the ACA). The actual details are handled by unelected bureaucrats in the Executive branch who have ZERO accountability to the public.

The ONLY solution is to undo federalization by eliminating all transfer payment aspects of the government, including corporate welfare.

But I have no confidence this will happen without a complete system collapse.

 

[Toddsterpatriot]

Or just post the link to the Fred original.

 

[Gary Anderson]

 

[boedicca]

Examples of Globalization Austerity Is Placed on America in Three Crucial Ways

This looks like SPAM to me.

 

[Gary Anderson]

Examples of Globalization Austerity Is Placed on America in Three Crucial Ways

This looks like SPAM to me.

I am trying to do what Todd said to do and put the image of the chart on this thread. But it isn't working.

 

[boedicca]

Examples of Globalization Austerity Is Placed on America in Three Crucial Ways

This looks like SPAM to me.

I am trying to do what Todd said to do and put the image of the chart on this thread. But it isn't working.

Take a pic of it an upload it as a file.

 

[Gary Anderson]

Examples of Globalization Austerity Is Placed on America in Three Crucial Ways

This looks like SPAM to me.

I am trying to do what Todd said to do and put the image of the chart on this thread. But it isn't working.

Take a pic of it an upload it as a file.

I don't know how to do that, I think.

 

[boedicca]

Examples of Globalization Austerity Is Placed on America in Three Crucial Ways

This looks like SPAM to me.

I am trying to do what Todd said to do and put the image of the chart on this thread. But it isn't working.

Take a pic of it an upload it as a file.

I don't know how to do that, I think.

Don't you have a Capture or SnagIt app that allows you to capture an image on a page?

You can also try just dragging the image to your desktop to see if that turns it into a jpeg.

 

[boedicca]

Here, I did it for you.

 

[Gary Anderson]

Awesome. So, you can see that the red line, the floating rate of LIBOR, crossed the blue line, the Fixed Swaps Rate.

When those crossed the banksters were insolvent and the financial system froze. So, the bankers take the low floating rate and the counterparties, who fear inflation, like government and medium businesses, all take the fixed rate that is higher and they lose. When the banks lose, and the LIBOR exceeds the Fixed, the banks get bailed out. Since the interest rate swaps market is the biggest on the face of the earth, this is the biggest scam in the history of finance. I am not a chart guy, but this was an easy one to make and very revealing.

 

[Toddsterpatriot]

Awesome. So, you can see that the red line, the floating rate of LIBOR, crossed the blue line, the Fixed Swaps Rate.

When those crossed the banksters were insolvent and the financial system froze. So, the bankers take the low floating rate and the counterparties, who fear inflation, like government and medium businesses, all take the fixed rate that is higher and they lose. When the banks lose, and the LIBOR exceeds the Fixed, the banks get bailed out. Since the interest rate swaps market is the biggest on the face of the earth, this is the biggest scam in the history of finance. I am not a chart guy, but this was an easy one to make and very revealing.

Yeah, whenever short term rates rise above long term rates, we're in trouble. So what?
Still looking for proof of your silly swap claim?
Tell me again how after a business borrows at a fixed rate, they have to enter into a swap agreement with the bank. Why? To get their rate "doubly fixed"? LOL!

 

[Gary Anderson]

Awesome. So, you can see that the red line, the floating rate of LIBOR, crossed the blue line, the Fixed Swaps Rate.

When those crossed the banksters were insolvent and the financial system froze. So, the bankers take the low floating rate and the counterparties, who fear inflation, like government and medium businesses, all take the fixed rate that is higher and they lose. When the banks lose, and the LIBOR exceeds the Fixed, the banks get bailed out. Since the interest rate swaps market is the biggest on the face of the earth, this is the biggest scam in the history of finance. I am not a chart guy, but this was an easy one to make and very revealing.

Yeah, whenever short term rates rise above long term rates, we're in trouble. So what?
Still looking for proof of your silly swap claim?
Tell me again how after a business borrows at a fixed rate, they have to enter into a swap agreement with the bank. Why? To get their rate "doubly fixed"? LOL!

Ok, Business and government wants a credit line. In order to qualify they must enter into a swap. The bank requires it. The bank lends a fixed loan, but assumes the floating rate on the swap. Swap Crisis Dollars Sense