joshuaodonnell

Problem Banks in 2008 Are Nowhere Close to 1990-91

The "problem" banks aren't the problem. The debt is the problem. Because the debt will create more and more problem banks... Thats the real problem...

lots and lots of problems....... That never really seem to have a solution. The real problem is the government. The government is creating more and more debt by borrowing "problem money" for the future. This puts huge strains on big and smaller regional banks. When you have a company like Lehman Brothers that was most of the time leveraged 60:1, you have a real problem. They defaulted on everything, and then collapsed. That is basically what happened to the government.