Kinabalu

America's Banks: Are They Really Insolvent?

"Krugman and Roubini make the point that most banks would be insolvent if there were a run on the bank - depositors demanding money back, debt holders accelerating amortization, etc. Truthfully, all banks would be insolvent in such a situation."

That's why economists aren't accountants. In the long run (an economic concept if there ever was one) the accountants will be right. Allocation of costs and revenues to individual accounting periods is the hardest thing accountants do. But they know that at the end of the companies life, whenever that is, they will have the final answer. In the meantime economists can kibbitz all they want.