Originally Posted by
shendog
Most of the activity the banks did was forced upon them by the Fed government, through a program developed in the Carter administration, put into action during the Clinton regime, and NOT stopped during the Bush years.
Most of the activity large banks do are derivatives, not loans. Basically they are bets on companies and commodities, some people call them insurance but they are backed by nothing while insurance is backed by a cash reserve to cover those policies. We are talking hundreds of trillions of dollars here backed by NOTHING.
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