Steve W from Ford

Certain Banks Are Still Broke

So the author presents no evidence of his assertion WFC is "broke". He just makes a statement like it is obvious. Meanwhile Warren Buffet is adding more to his already large position in WFC. Hmm, why would Buffet throw good money after bad? Gee who to believe? Think I'll go with Buffet.

What's Next for Banks?

From an investment standpoint it makes no sense to bet against the combined power of the Fed and Treasury that are now firmly arrayed behind the big banks. The big bank share prices will likely go higher particularly those beaten down the most over the last year.
That said it is a "fixed" game and could cost the average taxpayer grievously. The bet (using our money!) on the part of the Obama administration is that not bailing out the banks has more adverse consequences than bailing them out. What those who argue for letting them fail are really saying is that now is the time to institute a fundamental restructuring of the US economy to make it more biased towards the middle class and smaller banks and other financial players. Perhaps this IS the correct path but I think that most of us, if forced to make the choice, might also think that tinkering with the fundamentals of our economy during such perilous times is far too risky.
It is not like ANYONE really understands how the economy works and can easily design a better one.
The Obama administration is unlikely to switch horses in midstream and completely renounce their current plan so look for continued support of "Big Banking".
Lets hope it works.

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

What a shallow and useless exercise. Does no one exercise any editorial judgement on what gets posted?
The analysis is so shallow as to be laughable and the assumptions are rediculous. The US banking system will NEVER get to 75% losses as way before we reach this point there will be total societal collapse as to reach this point of loss posits that NOTHING any longer has any value is the US. Not house, not commercial buildings, not securites, nada zilch!
So why not just put on a sign saying "The End Is Near" it's about as good an argument.

Too Big Has Failed: KC Fed Prez Says We Need Temporary Nationalization

It's interesting that discussion about nationalization of banks doesn't even touch upon the fact that this is the seizure of private property without due compensation we are talking about.
No one seems to have any constitutional problem with this because it seems to be assumed that the public benefit is so obvious.
Other than Citi I don't know of a major bank that is not profitable or has insufficient regulatory capital which would, at least, provide a pretext of a reason for nationalization.
So we are already at the point where a possible benefit to the state justifies violating THE basic prohibition in the constitution?

Wow!