techzone12

The U.S. Banking System's Terrifying Balance Sheet

I wonder what would happen if all these trillions were funneled to the taxpayer instead!!.

On Apr 08 08:54 AM Lilguy wrote:

> ...and, so, remind again: Why is this financial system worth saving
> if it is essentially bankrupt? Why are these banks "too big to fail"
> if, as it appears, they have already? Why are we putting America
> in such deep hock to save these frauds and fools?
>
> I would note that, just last week (3/31), Bloomberg had an article
> detailing all the measures of the US Government to stimulate the
> economy. The programs together total commitments of $12.8 trillion.
> Wall Street's share of that--as reflected in Mr. Durden's article
> & Mr. Salmon's commentary--is some $9.3 trillion. Main Street's
> share--money for the other 300 million of us--is a mere $1.3 trillion
> while the USG has set aside $2.5 trillion to cover the bad bets of
> the GSEs and likely funding needs of the FDIC. (Nothing like covering
> the bad debt of the USG with more debt guaranteed by the "full faith
> and credit" of the USG!)
>
> Does any of that seem as wrong-headed to the rest of you as it does
> to me? What about the 5 million newly unemployed since the recession
> began? What about the 48,000 business failures last year--up from
> 28,000 in 2007--and the projected 62,000 such failures this year?
> What about the projected 1.5 million personal bankruptcies this year?
> ...and that doesn't even touch the massive damage to household wealth
> from decimated house values, depleted 401Ks, and overwhelming debt.
>
>
> What the hell is the Administration (& its predecessor) and the
> US Congress doing??