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Re: Zilla post# 133461

Wednesday, 01/06/2010 2:44:19 AM

Wednesday, January 06, 2010 2:44:19 AM

Post# of 729843
The issue with to big to fail in my opinion is that depositors money is used for colaterol on derivitives operations wich (because bank equity is comingles for all operations)can be leveraged at over 100 times and higher . These operations used to be seperate I think its glas stegal but I cant remeber off hand anyway basicaly the fdic is being used to insure wild speculation in the derivatives arena and have created a huge moral hazard by actualy bailing the to big to fail out already basically saying go ahead take all the risk you want we will cover the loss. I am stateing the obviouse it hasnt been fixed. I think there is some kinda chines firwall but it obviousely is not adhered to.

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