Chemist29

Waiting for the Government to Act on Banks

So a doctor who graduates med school who makes lets say 200k a year, and who has debts from undergrad and med school that total 250k, right when he graduates is insolvent right? Because his liabilities exceed his assets...makes sense. must declare bankruptcy right away huh? Yeah, I agree the banks common equity is probably negative but cash flow is there and liabilities are being paid. time is all that is needed, not government making more irresponsible lending decision (fannie and freddie anyone?)