Home Precious Metals

Bank deposits? Consider them a loan to the bank!

13»

Comments

  • bronco2078bronco2078 Posts: 10,225 ✭✭✭✭✭


    << <i>The US Treasury made good money on its investment in AIG and the TARP program.

    Now, shareholders continue to profit from investments in AIG and these same banks and
    insurance companies that participated in TARP.

    If anyone thinks these stocks are trading at inflated prices, they can sell the shares
    short and profit from the decline.

    I own AIG, Citi, Wells Fargo, Capital One, US Bancorp, State Street, PNC, First Republic, Prudential, Primerica &
    Cigna, from their offerings in 2009/2010. Every one has been an outstanding investment. >>





    That list of outstanding investments is a gathering of the biggest corporate welfare queens to ever suck at the teat of the american taxpayer image



  • cohodkcohodk Posts: 19,129 ✭✭✭✭✭


    << <i>

    << <i>The Treasury would have an extra $200+ billion if it had held its shares. >>




    Can we have a look at AIG's balance sheet? Is it stuffed full of junk bonds valued at par? Should be fun at some point in the future. Accounting standards only apply to the peons though so maybe no big deal.

    200 billion was only 2 months of QE at the height of the program . It was safer just to ctrl-P it >>




    AIG 10-Q Have fun


    The contention was made that bailing out AIG cost the US taxpayer lost tax receipts. A counter point was made that the US Treasury realized a profit of nearly $23 billion, which would be the same as a 25% tax on $90 billion in earnings.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 36,824 ✭✭✭✭✭


    << <i>The contention was made that bailing out AIG cost the US taxpayer lost tax receipts. A counter point was made that the US Treasury realized a profit of nearly $23 billion, which would be the same as a 25% tax on $90 billion in earnings. >>


    The lost tax receipts will continue each year that the Treasury allows AIG to use operating losses from previous years to eliminate taxes on current income. The realized $23B "profit" is a one time event. The lost tax receipt total remains unknown but continues to grow. I also have a problem with Treasury creating different tax reporting rules for "select" tax payers.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • s4nys4ny Posts: 1,569 ✭✭✭
    My favorite term (from AIG): notional amount on bifurcated embedded derivatives.
  • cohodkcohodk Posts: 19,129 ✭✭✭✭✭


    << <i>

    << <i>The contention was made that bailing out AIG cost the US taxpayer lost tax receipts. A counter point was made that the US Treasury realized a profit of nearly $23 billion, which would be the same as a 25% tax on $90 billion in earnings. >>


    The lost tax receipts will continue each year that the Treasury allows AIG to use operating losses from previous years to eliminate taxes on current income. The realized $23B "profit" is a one time event. The lost tax receipt total remains unknown but continues to grow. I also have a problem with Treasury creating different tax reporting rules for "select" tax payers. >>




    I get ya, but AIG is not select. All companies can offset losses.

    The taxpayer wont lose out until AIG has at least $90 billion in profits, and that if they still have losses to offset. AIG paid $3 billion in income tax last year. Overall the net effect of the Treasurys involvement was a HUGE positive for the US taxpayer.

    Whether the G should have intervened at all is an entirely separate debate.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • C0INB0YC0INB0Y Posts: 627 ✭✭
    Do You Consider them a loan to the bank!


    I wish the derryb would make this a Poll Question!

    image
    I was ‘COINB0Y' with 4812 posts and ‘Expert Collector’ ranking (Joined in 2006).
  • C0INB0YC0INB0Y Posts: 627 ✭✭


    << <i>notional amount on bifurcated embedded derivatives >>



    = a Huge Bet on Anything with Something that becomes Nothing when it is Crashing
    I was ‘COINB0Y' with 4812 posts and ‘Expert Collector’ ranking (Joined in 2006).
  • s4nys4ny Posts: 1,569 ✭✭✭
    Deposits are a liability on the bank's balance sheet.

    You can call it a loan to the bank if you like. Officially it is a
    demand deposit.
  • C0INB0YC0INB0Y Posts: 627 ✭✭


    << <i>Deposits are a liability on the bank's balance sheet.

    You can call it a loan to the bank if you like. Officially it is a
    demand deposit. >>



    Yup, I can "demand" a withdraw, but the Bankster can say "you gotta wait " using the Laws written by the Politician he has purchased with your "loan to the bank"

    Pretty Clever, isn't it?

    Banksters always win unless we don't 'play' i.e. some do their saving at "King Mattress" National or "Backyard Savings"
    I was ‘COINB0Y' with 4812 posts and ‘Expert Collector’ ranking (Joined in 2006).
  • s4nys4ny Posts: 1,569 ✭✭✭
    The FDIC requires that member institutions pay "demand deposits" on demand.




  • derrybderryb Posts: 36,824 ✭✭✭✭✭


    << <i>The FDIC requires that member institutions pay "demand deposits" on demand. >>


    . . . until they can't. At this point they convert them to demand loans. image

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    Brit has a solution: Make cash illegal

    "Having everyone’s account at a single, central institution allows the authorities to either encourage or discourage people to spend. To boost spending, the bank imposes a negative interest rate on the money in everyone’s account – in effect, a tax on saving."

    No thanks.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • jmski52jmski52 Posts: 22,854 ✭✭✭✭✭
    Banksters always win unless we don't 'play' i.e. some do their saving at "King Mattress" National or "Backyard Savings"

    Unfortunately, banksters win any time they feel like creating more imaginary dollars - which instantly compete with all of the dollars that you and I had to earn the old-fashioned way. So putting them into King Mattress, Backyard Savings, S&P 500, AIG stock, GM stock, trips to Tahoe, a beach house on Maui - doesn't matter what, it instantly competes with your savings no matter how you slice it.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • BaleyBaley Posts: 22,660 ✭✭✭✭✭
    So putting them into King Mattress, Backyard Savings, S&P 500, AIG stock, GM stock, trips to Tahoe, a beach house on Maui - doesn't matter what

    It might matter a little bit, but that's not a bad list for diversification.. been peeking at my spreadsheets? image

    it instantly competes with your savings no matter how you slice it.

    Ayap.. and every single day is a battle of the individual's muscles against the gravity of the planet Earth... and therefore... um.. what now?

    Liberty: Parent of Science & Industry

  • bronco2078bronco2078 Posts: 10,225 ✭✭✭✭✭


    << <i>So putting them into King Mattress, Backyard Savings, S&P 500, AIG stock, GM stock, trips to Tahoe, a beach house on Maui - doesn't matter what

    It might matter a little bit, but that's not a bad list for diversification.. been peeking at my spreadsheets? image

    it instantly competes with your savings no matter how you slice it.

    Ayap.. and every single day is a battle of the individual's muscles against the gravity of the planet Earth... and therefore... um.. what now? >>




    Gravity affects everyone the same. The bankers are livin the zero-g lifestyle. image
  • OperationButterOperationButter Posts: 1,672 ✭✭✭
    Gold is for savings. Fiat is for transactions.



    BST Transactions (as the seller): Collectall, GRANDAM, epcjimi1, wondercoin, jmski52, wheathoarder, jay1187, jdsueu, grote15, airplanenut, bigole
  • ebaytraderebaytrader Posts: 3,312 ✭✭✭


    The banks want a taste of your ForEx deposits.

    Cheaper than their own desk doing the trade plus no risk!

    Does it get any tastier for the banksters?
  • ebaytraderebaytrader Posts: 3,312 ✭✭✭
    HSBC has written to other banks to warn it will start charging them for deposits in euros, Swiss francs, Danish krone and Swedish krona — all currencies of countries that have negative interest rates — at its UK, German and Hong Kong operations from this summer.
Sign In or Register to comment.