MANY THANKS TO GGERSH WHO FIRST POSTED THIS BUT IN CASE THE URL DISAPPEARS AS DOES MOST OF THE TWO WALL STREET ON PARADE ARTICLES POSTED IN THE LAST WEEK SHECK OUT ...
BOTH THE CHARTS AND THE WHOLE ARTICLES ON wallstreetonparade.com
I MIGHT NOTE THAT THE CHINESE WERE LARGE RECIPIENTS OF THE LARGESS OF THE FED ..
Closing Price of the S&P 500 Index on Friday, March 27, 2020, Versus the Wall Street Banks
Despite what was obvious to anyone watching stock charts, Fed Chair Jerome Powell repeatedly testified to the Senate Banking Committee that the U.S. megabanks were “a source of strength” during the financial crisis in 2020.
In the first six months of 2019, long before there was a pandemic anywhere in the world, Reuters reported that JPMorgan Chase had reduced the reserves it was holding at the Fed by $158 billion, or an alarming 57 percent. To this day, no one knows what JPMorgan Chase needed that money for or why the Fed let it draw down those reserves.
The Financial Crisis Inquiry Commission, the official government body that examined the underpinnings of the 2008 implosion on Wall Street, said this about the role of derivatives in the crisis: “the existence of millions of derivatives contracts of all types between systemically important financial institutions—unseen and unknown in this unregulated market—added to uncertainty and escalated panic, helping to precipitate government assistance to those institutions.”
Despite this acknowledgement that derivatives played a central role in the worst financial crisis in 2008 that the U.S. had seen since the Great Depression, neither the Fed, nor Congress, nor the banking regulators have stopped these banks from holding tens of trillions of dollars of derivatives with questionable counterparties on the other side. Even worse, in the U.S., the derivatives are held at the federally-insured banking units of the megabanks, which are holding deposits for moms and pops across America. |
