Additionally, JP Morgan is on the hook for over $9.2 TRILLION of over-the-counter CREDIT DEFAULT SWAPS in one way or another. This is about 20% of the total outstanding market. The question is, when they hedged their risk were the counter parties RICH ENOUGH to PAY OFF? My guess is that 30 to 40% of these counterparties have little or no ability to PAY. Who will fill the hole in their balance sheet? Either the Treasury (by BORROWING the money) or the FED (by PRINTING it) will. Either way, it’s the public who pay back the debt in future earnings or savers when their purchasing power is stolen while their money sits in the bank via DEBASEMENT.

Now instead of them being on the hook for the payback it will be you, me and our children. These companies are bankrupt. They must be allowed to die and pass into the hands of PRUDENT managers and stronger hands. The irony and OUTRAGE of this is that management is allowed to stay in the hands of these incompetent fraudsters.

To put this amount of spending into perspective, let’s examine a recent missive from James Bianco at Bianco Research in Chicago:

“Jim Bianco of Bianco Research crunched the inflation adjusted numbers. The bailout has cost more than all of these big budget government expenditures – combined:

• Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
• Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
• Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
• S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
• Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
• The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
• Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
• Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion

TOTAL: $3.92 trillion (data courtesy of Bianco Research)
That is $686 billion less than the cost of the credit crisis thus far.

The only single American event in history that even comes close to matching the cost of the credit crisis is World War II: Original Cost: $288 billion, Inflation Adjusted Cost: $3.6 trillion

The $4.6165 trillion dollars committed so far is about a trillion dollars ($979 billion dollars) greater than the entire cost of World War II borne by the United States: $3.6 trillion, adjusted for inflation (original cost was $288 billion).”
Thank you, James.

So the cost of the current crisis is greater than all of the above, including World War II, and can be expected to at least DOUBLE from here. And of course Bianco uses the OFFICIAL GOVERNMENT measures of inflation, not the true numbers like we find at www.shadowstats.com . Now here’s the BAD news:

THESE NUMBERS DO NOT INCLUDE THE REST OF THE G7 and they are in as much or more trouble than the United States. The reality of this has just BEGUN to be felt. It has happened so fast that the ALTERED REALITY we will endure is only in its infancy!!!

http://www.traderview.com/economicco...