Zerohedge: It almost happened in 2008… but as this excerpt from Casey Research’s Meltdown America documentary notes, it appears the US military is preparing for the potential collapse of the US dollar. As Scott Taylor warns, “…if the carrot (of credit worthiness) is fading, and the stick (of military threat) is weak, that empire is going to come down in a hurry…” which leaves a serial economic mis-manager only one option to ‘secure’ the empire.
To see what the consequences of economic mismanagement can be, and how stealthily disaster can creep up on you, watch the 30-minute documentary, Meltdown America. Witness the harrowing tales of three ordinary people who lived through a crisis, and how their experiences warn of the turmoil that could soon reach the US. Click here to watch it now.
Protesters rally outside a Bank of America shareholders meeting in Charlotte, N.C., on May 8, 2013. — AP View Enlarged Image
Investors.com: Extortion… During the Occupy Wall Street mania, the general feeling in Washington was that big banks could absorb more legal hits. First-quarter results show lawsuits are taking a worrisome toll.
Bank of America shocked Wall Street with a $276 million first-quarter loss attributed in part to a multibillion settlement with the government over subprime loans and a legal set-aside of another $2.4 billion to cover future expenses from additional Justice Department probes.
This legal reserve was more than double the amount the bank set aside for bad loans.
Analysts say the results were marred by the impact of a $10 billion deal with the Obama administration over subprime mortgages and bonds sold to Fannie Mae and Freddie Mac. The settlement cost the bank about 40 cents a share after taxes. These are the same junk loans the federal government strong-armed the industry to underwrite and sell in the run-up to the financial crisis to carry out its disastrous national homeownership scheme.
BofA is in talks with Justice about settling another suit over mortgage-backed securities that could reach several billion dollars. The girth of its reserve suggests management thinks future legal bills will be bigger than previously expected. Shareholders should brace for more costly actions.
Meanwhile, JPMorgan Chase has set aside a whopping $23 billion in legal reserves of its own as insurance against Attorney General Eric Holder’s endless bank shakedown. The bank has already paid roughly $20 billion over the past 12 months to settle a raft of government claims.
Partly as a result, JPMorgan reported a 19% slump in first-quarter profits. Its $1.28-a-share, or $5.27 billion, net was well below the forecast $1.40.
While the administration thinks it’s punishing greedy Wall Street “fat cats,” it’s really hurting the economy and workers.
All told, the nation’s largest banks have paid legal charges and hoarded related cash worth more than $100 billion. That’s a tenth of a trillion less capital for entrepreneurs and businesses that could create wealth and provide jobs.
In fact, Holder’s jihad on banks is a jobs killer for the very working-class Americans the administration champions. It’s not fat cats losing their jobs, it’s mostly branch workers such as tellers and loan officers.
JPMorgan said that it is laying off 8,000 employees mostly in its mortgage and credit card divisions, while adding jobs in compliance to help it avoid more fines.
BofA is in its second round of cuts this year, after already shedding 40,000 jobs since 2011. Meanwhile, it is also ramping up its compliance officer hires to fend off future government assaults.
As the administration cracks down on big banks, its new financial rules — enforced by its powerful new consumer credit watchdog agency, the Consumer Financial Protection Bureau — are driving smaller community banks out of business.
If the administration continues to weaken big banks by bleeding off their cash, it could dry up the share of banks healthy enough to absorb failing banks.
It’s playing a dangerous game that threatens to destabilize the banking system and economy.