Bad Bank List

In 2003 Warren Buffet proclaimed, “Derivatives are financial weapons of mass destruction.”
They are the root cause of the coming Great Depression 2.0.

To celebrate the inevitible collapse of Wachovia today I’ve updated my list of the top 25 banks in the US with the largest exposure to toxic derivatives. I’ve added the current bank ratings from The Street to help you guage how much trouble each is in.

[click to enlarge]

Three of these top 25 banks have now failed.
In my estimation two more are on life support. Altogether, about half are in bad shape.

Of course, the worst offender on the list remains JPMorgan Chase. I now believe they will never fail as they are the Fed’s “Fair-Haired Golden Boy.” [see post]

As our hero Jim Sinclair suggests, keep enough money in the bank for 6 months expenses and put the rest into physical gold [and silver] or US Treasuries.

◊◊◊◊ Now: Gold @ $906.50, Silver @ $13.13, USDX @ 77.68 ◊◊◊◊
◊◊◊◊ Now: DJIA 10,365.45