Calling Saturn: Can we get a loan from you?
Most people do not know that this past October, the Federal Reserve dumped a batch of risky derivatives contracts held by Bank of America upon the Federal Deposit Insurance Corporation (FDIC), meaning that the U.S. taxpayers will ultimately be on the hook for repayment of losses for depositors. The amount of derivatives held by Bank of America? $75 TRILLION. TRILLION, not billion. Written out, it looks like this: $75,000,000,000,000.00.
To give you some perspective of how huge that number is, consider this:
As of December 8, 2011 the gross (U.S. national) debt was $15.05 trillion, of which $10.39 trillion was held by the public and $4.66 trillion was intragovernmental holdings. The annual gross domestic product (GDP) to the end of June 2011 was $15.003 trillion (July 29, 2011 estimate), with total public debt outstanding at a ratio of 100% of GDP, and debt held by the public at 69% of GDP. http://en.wikipedia.org/wiki/United_States_public_debt (Internal cites omitted.)
As of 2010, the World’s Gross Domestic Product in U.S. dollars was $63,123,887,517,709. This data comes from the World Bank. http://data.worldbank.org/region/WLD
In other words, the derivative bets placed by BOA, and the risks of their default now transferred to the U.S. public, is 5 x our national GDP. So we would need every dollar produced in the United State by every single person for 5 years to pay off those derivatives alone. As for the world, those derivative bets exceed our gross domestic product by 18%, so every dollar earned by every person in the WORLD for a period of 1 year and 2 ½ months would be needed to pay off BOA’s bets, if they all went bad.
“The Fed’s approval to move derivatives from Bank of America’s holding company to the depository unit directly puts the U.S. taxpayers on the hook. The FDIC cannot handle any large banking failure with its depleted Deposit Insurance Fund and would have to immediately tap its line of credit with the U.S. Treasury.” http://problembanklist.com/fdic-to-cover-losses-on-trillion-bank-of-america-derivative-bets-0419/
Except there is no line of credit in this solar system that can cover such a loss.