Big Bang upcoming for the big banks this fall ?

http://theeconomiccollapseblog.com/archives/are-the-government-and-the-big-banks-quietly-preparing-for-an-imminent-financial-collapse

Are The Government And The Big Banks Quietly Preparing For An Imminent Financial Collapse?

Something really strange appears to be happening.  All over the globe, governments and big banks are acting as if they are anticipating an imminent financial collapse.  Unfortunately, we are not privy to the quiet conversations that are taking place in corporate boardrooms and in the halls of power in places such as Washington D.C. and London, so all we can do is try to make sense of all the clues that are all around us.  Of course it is completely possible to misinterpret these clues, but sticking our heads in the sand is not going to do any good either.  Last week, it was revealed that the U.S. government has been secretly directing five of the biggest banks in America "to develop plans for staving off collapse" for the last two years.  By itself, that wouldn't be that big of a deal.  But when you add that piece to the dozens of other clues of imminent financial collapse, a very troubling picture begins to emerge.  Over the past 12 months, hundreds of banking executives have been resigning, corporate insiders have been selling off enormous amounts of stock, and I have been personally told that a significant number of Wall Street bankers have been shopping for "prepper properties" in rural communities this summer.  Meanwhile, there have been reports that the U.S. government has been stockpiling food andammunition, and Barack Obama has been signing a whole bunch of executive orders that would potentially be implemented in the event of a major meltdown of society.  So what does all of this mean?  It could mean something or it could mean nothing.  What we do know is that a financial collapse is coming at some point.  Over the past 40 years, the total amount of all debt in the United States has grown from about 2 trillion dollars to nearly 55 trillion dollars.  That is a recipe for financial armageddon, and it is inevitable that this gigantic bubble of debt is going to burst at some point.

In normal times, the U.S. government does not tell major banks to "develop plans for staving off collapse".

But according to a recent Reuters article, that is apparently exactly what has been happening....

U.S. regulators directed five of the country's biggest banks, including Bank of America Corp and Goldman Sachs Group Inc, to develop plans for staving off collapse if they faced serious problems, emphasizing that the banks could not count on government help.

The two-year-old program, which has been largely secret until now, is in addition to the "living wills" the banks crafted to help regulators dismantle them if they actually do fail. It shows how hard regulators are working to ensure that banks have plans for worst-case scenarios and can act rationally in times of distress.

Does it seem odd to anyone else that only five really big banks got such a warning?

And why keep it secret from the American public?

Does the federal government actually expect such a collapse to happen?

If federal officials do expect a financial collapse to occur, they would not be the only ones.  An increasing number of very respected economists are speaking about the coming financial collapse as if there is a certain inevitability about it.

For example, check out the following quote from a recent Money Morning article....

Richard Duncan, formerly of the World Bank and chief economist at Blackhorse Asset Mgmt., says America's $16 trillion federal debt has escalated into a "death spiral," as he told CNBC.

And it could result in a depression so severe that he doesn't "think our civilization could survive it."

A former World Bank executive is warning that our civilization might not survive what is coming?

That is pretty chilling.

Economist Nouriel Roubini says that he believes that the coming crisis will be even worse than 2008....

"Worse because like 2008 you will have an economic and financial crisis but unlike 2008, you are running out of policy bullets. In 2008, you could cut rates; do QE1, QE2; you could do fiscal stimulus; you could backstop/ringfence/guarantee banks and everybody else. Today, more QEs are becoming less and less effective because the problems are of solvency not liquidity. Fiscal deficits are already so large and you cannot bail out the banks because 1) there is a political opposition to it; and 2) governments are near-insolvent - they cannot bailout themselves let alone their banks. The problem is that we are running out of policy rabbits to pull out of the hat!"

Across the pond, many European officials are echoing similar sentiments.

What Nigel Farage told King World News the other day is very ominous....

Today MEP (Member European Parliament) Nigel Farage spoke with King World News about what he described as the possibility of, “a really dramatic banking collapse.”  Farage also warned that central planners want to enslave and imprison people inside of a ‘New Order,’ and he described the situation as “horrifying.”

The situation in Europe continues to get worse and worse.  The authorities in Europe have come out with "solution" after "solution", and yet unemployment continues to skyrocket and economic conditions in the EU have deteriorated very steadily over the past 12 months.

If all of that was not bad enough, there are an increasing number of indications that Germany is actually considering leaving the euro.

Needless to say, that would be a complete and total disaster for the rest of the eurozone.

Of course there are any number of ways that the financial crisis in Europe could potentially play out.

But all of the realistic scenarios would be very bad for the global economy.

Meanwhile, our resources are dwindling, war in the Middle East could erupt at any moment and our planet is becoming increasingly unstable.  The following is from a recent article by Paul B. Farrell on Marketwatch.com....

Fasten your seat belts, soon we’ll all be shocked out of denial. Some unpredictable black swan. A global wake-up call will trigger the Pentagon’s prediction in Fortune a decade ago at the launch of the Iraq War: “By 2020 ... an ancient pattern of desperate, all-out wars over food, water, and energy supplies is emerging ... warfare defining human life.”

It is almost as if a "perfect storm" is brewing.

Of course the historic drought that is ravaging food production in the United States this summer is not helping matters either.  Another summer or two like this one and we could be looking at a return of Dust Bowl conditions.

Anyone that is watching what is going on in the world and is not concerned at all about what is happening is simply being delusional.

Recently, a "team of scientists, economists, and geopolitical analysts" examined the current state of the global economic system and the conclusions they reached were absolutely staggering....

One member of this team, Chris Martenson, a pathologist and former VP of a Fortune 300 company, explains their findings:

"We found an identical pattern in our debt, total credit market, and money supply that guarantees they're going to fail. This pattern is nearly the same as in any pyramid scheme, one that escalates exponentially fast before it collapses. Governments around the globe are chiefly responsible.

"And what's really disturbing about these findings is that the pattern isn't limited to our economy. We found the same catastrophic pattern in our energy, food, and water systems as well."

According to Martenson: "These systems could all implode at the same time. Food, water, energy, money. Everything."

Hmmmm - it sounds like they have been reading The Economic Collapse Blog.

The truth is that a massive worldwide financial collapse is coming.

It is inevitable, and it is going to be extremely painful.

and.....

NEXT ‘CRISIS’ TO SEE JPM & GS ACQUIRE BOA & CITIGROUP?

AUGUST 13, 2012 BY THE DOC 2 COMMENTS

Steve Quayle’s banking source states that the major US banks have been told to brace for a major October-November event, and that the banking system collapse plans call for zombie banks JP Morgan Chase and Goldman Sachs to acquire (take over) Bank of America & Citigroup.
This could potentially forestall JPMorgan and Goldman Sach’s derivative implosion for another 2-3 years.
Quayle’s source also states a beta-run STUXNET type virus called Apollyon has been affecting banks throughout the middle east, and the full version will be employed on the full Western banking system this fall, on which the banking elite will place the blame for the bank collapse.
Think it a coincidence that Apollyon is the Greek name for ‘the Destroyer’ better known as ‘The Beast’ in the book of Revelation?

MUST READ BANKING ALERT below:

From Steve Quayle:

Banks are all braced for collapse: This is happening in the Eurozone and the US as well. In fact US banks have been ordered to brace for a “October-November event” This I detailed is the “OFFICIAL” collapse of the Euro. In the US the plans were done back in 2009 not two years ago as some would surmise. This collapse plan would allow JP Morgan and Goldman Sachs to acquire Bank of America and Citigroup. Thus Post collapse there will only be two banking giants in the US, JPM and Goldman. Goldman Sachs will move to full blown retail commercial banking. Yes you read that correctly, Goldman Sachs branches in your neighborhood where you can open a checking account for the new digital currency that you will be carrying. Morgan Stanley will be killed off.

Energy companies pulling out: Apart from the Russians and the mess they are in with the Euro, companies like Royal Dutch Shell the Largest energy company in the world has pulled out all their assets from the Euro. Exxon-Mobile and BP are soon to follow. This will accelerate the global crash even faster.

Bank Hacks: I have told many of you to get your funds out of the accounts here is another reason why. Apart from the banking hacks that is occurring and no one is talking about, which by the way is affecting close to 200 banks worldwide. Gauss Virus that is supposedly affecting the middle east has from my sources confirmed a “Stuxnet created for the banking system” has all the hallmarks of yet another Central Bank/Intelligence Agency operation. Gauss is a beta test, a trail run. There is a more powerful version which will be unleashed right before collapse to sweep all accounts. The name of this from what I am hearing is called project APOLLYON a fitting name indeed. Will they change the name of this destroyer last minute? Maybe.

We are in the final phases of a massive upheaval, with the Olympics distraction over for the masses, look for another distraction to fill the headlines, possible large scale regional war that has the potential to spin out of control into a full scale Global World War. With the close of the Olympics, the state of economics world wide, the elites have nothing else up their sleeves to distract the masses. War is the next made for TV movie.

and who buys JPM before or after they supposedly take on BAC or C ? ? 

JAMIE DIMON JUST ADMITTED TO THE WORLD THAT JPM’S ASSETS ARE OVERVALUED BY $150 BILLION

AUGUST 12, 2012 BY THE DOC 15 COMMENTS

Buried in its mandated report on JP Morgan’s contingency plan in the event of collapse, JP Morgan has admitted it’s assets are overvalued by $150 billion, essentially leaving their equity position at (-$16 billion)!

The Morgue’s recent $7 billion CIO losses weigh slightly larger against a real equity of -$16 billion!

Reuters published an exclusive story this morning:

U.S. banks told to make secret plans for preventing collapse
Buried in the final paragraph:

In a presentation in March, JPMorgan Chase said it had a recovery plan in place and said it was ordered by regulators. The presentation was organized by Harvard Law School and was closed to the media at the time, but is now available online.

Here’s the BEST part of the JPM document.

It’s easy to see on the PDF:

http://www.law.harvard.edu/programs/about/pifs/symposia/europe/baer.pdf

Go to page 9. Under the wipeout scenario JPM describes a $50 billion trading loss turning into a $200 billion loss as soon as the FDIC takes over. Why… ? Because JPM says they would expect the FDIC to immediately writedown JPM’s assets by an additional $150 billion.

Holy mark to bulls***. Jamie Dimon just admitted to the world that JPM is mis-marking assets to the tune of $150 billion.

It gets better. Go to page 10. The chart shows that they only have $184 billion in equity, minus the $50 billion loss, minus ‘the $150 billion fdic reality adjustment’, which leaves them in a negative equity position of (-$16 billion).

So, we can extrapolate that without this phantom loss of $50 billion, JPM’s real equity position is just $34 billion currently, not the $184 billion on their books.

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