Topic: The $200 Trillion Dollar Gorrilla

[Libertas]

"US Commercial banks have $200 TRILLION in interest rate based derivatives sitting on their balance sheets."

http://www.zerohedge.com/contributed/real-200-trillion-problem-bernanke%E2%80%99s-worried-about?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

What could possibly go wrong with a Fed that has assumed control of monetary and fiscal policy?  It's not as if they'll have problems navigating the two...

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[jpatrickham]

Yep!

Pennsylvania state capital files for bankruptcy protection


October 13, 2011 By Patrick Rizzo

"The potent brew of a weak recovery, falling revenues and high debt has claimed another municipal victim.

This time, it’s Harrisburg, Pa., the state capital with a population of 46,000, whose city council voted late Tuesday to file for Chapter 9 municipal bankruptcy protection, according to The Patriot News.

The Associated Press said Wednesday that Harrisburg had indeed filed the petition, which cited “overwhelming debt,” adding that the city was in “imminent jeopardy” from creditor claims.

The City of Harrisburg was facing a state takeover amid its financial problems. Reuters reported that it ”faces a $300 million debt crisis tied to a project to revamp its incinerator and has been plagued with cash flow problems.”

http://bottomline.msnbc.msn.com/_news/2011/10/12/8285336-pennsylvania-state-capital-files-for-bankruptcy-protection#.TpbArVLzGEs.email