Defaulting banks - where will it stop?

[Magda Hassan]

Entities ranging from Zero Hedge and Market Ticker to the Wall Street Journal and Fox Business News are reporting that the Fed is opening credit lines of $800 billion to $1 trillion to 1100 European banks, at a rate of 1%.

This is a last desperate throw of the dice (our dice) in an attempt to prevent the Ponzi scheme of global market capitalism from collapsing.

The balance sheets of most major financial institutions are lies. Apparently, some banks are still holding Icelandic assets at 100% face value, even though Iceland has defaulted. That is merely a visible symbol for the toxic trash marked on balance sheets at face value when in reality it is worth pennies on the pound.

And who owns the trillion dollars being given to these bankrupt banks? That would be us.

http://blogs.wsj.com/economics/2010/05/0...p-program/

http://www.zerohedge.com/article/euro-su...takes-hold

http://www.foxbusiness.com/story/markets...it-window/

The ECB has opened up a Euros 70 billion credit line.

http://www.guardian.co.uk/business/2010/...ction-plan

This is no more, nor less, than one last act of looting, of gorging at the taxpayer's trough, by the financial elites before hell is unleashed......

This looks rather ominous Jan. It can only be played out so long. At some stage the chickens will come home to roost. Then they'll need some really major type of distractions.