Finally someone starts to dig away at the rot…good beginning.
The Raw Numbers as of March 6th 2009;
The entire Real estate market in USA is valued at roughly 23 Trillion
The stock market at roughly 15 Trillion
The total gross domestic product of the USA stands at 14.2 Trillion
The WORLDS stock markets total approximately 52 Trillion
Lets assume European Real estate at double USA, 46 Trillion
The Totals for these assets are : 150.2 Trillion Dollars
Assuming the real estate and stock markets have dropped 50% in the last 2 years, we will use a figure of 300.4 Trillion dollars as the asset base for issuing Credit and the trading of credit instruments.
According to the Bank for International Settlements (BIS), there is approximately 680 Trillion in Derivatives outstanding carried by European and American Banking systems, most of this is held by European Banks.
There was over 380 Trillion in Derivatives completely worthless and issued by Banking system without any underlying asset backing them until march of 2007. As real estate and stock markets dropped in response to the credit bubble created by over 300 trillion in worthless paper, the 380 Trillion has become over 520 Trillion in worthless unsecured paper held mainly by European Banking systems in late 2008.
The European banking system was ready to collapse in Oct of 2008 due to derivatives held mainly by Bank of England and French Banking families. The Federal Reserve had been sending Trillions to Europe in 2007 and 2008 to stave off collapse without success, there is just too much rot in European Banks. In Oct of 2008 AIG began to send Billions directly to banks in Europe while the Federal reserve continued sending trillions without legislative oversight or supervision.
This is the cause for worldwide Banking crisis, not subprime mortgages. that was nonsense swallowed by inept journalists and reporters too lazy to do their own research.
Fixing this will take the guts nobody has in Washington DC, regulating the Federal Reserve and allowing European Banks to fail.
