Denninger: FDIC Blues
Read these three recent posts by Karl Denninger, in the original order:
Is The FDIC Broke and Covering It Up?
Pump Monkey Orgasms
ROFL! FDIC "Tells Banks" To Quit Cooking The Books!
Remember how close we came last fall to a bank meltdown?
Check your reserves of mattress money.
1 Comments:
“We also know that about $1 trillion in bad loans have been written down thus far, which means there is two trillion more to go,..”
Loan losses of this magnitude would offset any putative gains, as represented by the “stimulus package”. Since the stimulus was paid for with borrowed money, it will have to be repaid with taxes and/or debt depreciation via monetary inflation.
Monetary inflation will introduce a risk premium to borrowed money. Interest rates will rise. Financing a house will then become more costly. This will further depress the housing market.
In the end, we will be paying higher taxes while watching the value of our housing stock decline. Is this any way to structure a recovery?!
MALTHUS
Post a Comment
Subscribe to Post Comments [Atom]
<< Home