paulsjj

The Virtue of the Republic

Washington: "The House of Games"...The bail-out in all of its forms: "The Big Knockover" (Ref. Dashiel Hammet).

How Much of the Banks' Earnings Are Real?

Banks have a license to make money through the fractional reserve system. The only reason they fail is for over-reaching (excess leverage), assets that aren't assets, billions of $ off the balance sheet, and fraud.

This Is Not "the Big One"

How does billions of dollars of mortages written against property become trillions of dollars of debt upstream to the big investment banks. No body is talking about t he leverage involved here from the base mortage to AIG's $trillions in liabilities that they cannot cover. I say let them fold. Soon the market on the ground will buy up the foreclosed properties and the paper will clear at various levels of loss. The leverage involved goes up in smoke.