These are the top 25 banks in the nation with the highest exposure to derivatives. Warren Buffet has said “derivatives are financial weapons of mass destruction.”
Keep in mind: the US GDP is $11 trillion. The entire world’s GDP is $45 trillion. The top bank is gambling with $91 trillion in derivatives.
This is why I left Wells Fargo in 2006. When you compare these banks’ assets to their derivatives position you can see how fragile they really are.
Look at #3 on the list, Bank of America. Are they getting desparate for $ after bailing out CountryWide Financial? BusinessWeek is reporting that B of A “in mid-January sent letters notifying some responsible cardholders that it would more than double their rates to as high as 28%, without giving an explanation for the increase.”
BusineesWeek asks “Is BofA greedy or needy?” See article. BofA raised the rates of one software developer from 9.99% to 24.99% simply because they felt he hadn’t been paying down his balance fast enough (he’s at only 50% of his credit limit).
Please protect yourself:
Don’t carry a balance on a credit card.
Don’t bank at one of the 25 banks above.
◊◊◊◊ As of today: Gold @ $916.25, Silver @ $16.95 ◊◊◊◊