Tuesday, May 5, 2009
the Man SAYS ITS bad!
The Stress Test results are going to be announced thursday, and its going to be bad. But everyone at first will act like its manageable
. Then the bottom is going to drop out.
Banks are already insolvent
Some of these Banks had record earning the first quarter right??? Now they just need billions more to be well capitalized so they dont fail?? How many forclosures are out there, that the banks havent put on the books yet? How many houses worth 150,000 are out there, that the bank is holding 500,000 on? Maybe 2 trillion worth?
How bad will it be? I dont know. 2800 is the guess, the guy I trust says. we will see.
The real problem aside from money, is you have been lied to. Lied to about everything. Dont watch CNBC, aside for funny things like that clip. Dont just read the headlines and editorials in the NYT's. Really dig into the info, the truth is hidden in plain sight.
What people dont understand is that our entire way of life is built on cheap credit from China. well,
China is done!
Then there is Dennigers take:
"Tuesday, May 5. 2009
Posted by Karl Denninger in Banking System at 09:53
(Page 1 of 313, totaling 937 entries) » next page
Stress Tests: What's That Light?
The continued refusal by our government to put these financial institutions where they belong - in front of a bankruptcy judge where priority is honored, the capital structure is crammed down and the assets sold off for whatever the market will bear - is leading us inexorably toward economic Depression. Both President Bush and now Obama are proceeding under the (false) hope that if they can hold things together for a little while the economy will turn and it will all be ok.
The "green shoot" people are all predicting positive GDP in the 3rd and 4th quarter. What they're not talking about is what the real number was for the 1st Quarter - there was a trade balance shift credit in there worth nearly 3%; take that back out and we weren't -6% annualized, we were -9%!"
Denniger has been right all along.