Quadrillions In Derivatives Is Ready To Blow Up A Magnitude Bigger Than What Happened To AIG. They Are Rate Sensitive. Every Tick Up Brings Us Closer To A Massive Event!
June 28th, 2013
Basel III is going to happen, and the Fed will vote for it, and if they do, then congress will sign off without a peep. The Fed was the one pushing to get it voted on!!!
For those of you that have been paying attention to my posts on the coming economic collapse. A MAJOR indicator is about to happen. The Fed is going to vote on Basel III Implementation in the USA on July 2, 2013. Increased capital requirements and decreased leverage requirements can only lead to a slow down in availability of credit.
Buckle up, because here we go…
The Federal Reserve plans to vote July 2 on whether to adopt a year-old proposal to implement a global agreement on bank capital buffers, known as Basel III, a critical step to ensure that large financial institutions are sufficiently cushioned against future financial shocks. Based on the proposal, which implements the international accord agreed to in September 2010, banks will be required to hold the strictest form of common-equity capital at 7% of their risk-based assets, up from 2% currently. U.S. bank regulators may seek to adopt a tougher new leverage limit rule for banks, as a separate proposal. The Fed approved the introduction of the Basel III proposal by a vote of 7 to 0.
If and when Bond Yields go parabolic, banks and hedge funds will begin cashing in interest rate hedges…all in the middle of a liquidity crisis, how’s that going to work out…
The 441 TRILLION Dollar Interest Rate Derivatives Time Bomb