Illusory Balance Sheets
When a liquidity trap opens, willingness to lend at any rate, helps nothing. Why? Few are borrowing or buying...
and for fear prices will go lower... everyone with half a brain is selling everything they can for whatever liquidation price can be had. Why?
Because tomorrow it may be worthless. Why? In "Worthless As Tulips" we explained why the ratings issued on the securities are worthless.
Plunging real estate, never worth even 30 cents of its peak price, only worth it to greedy flippers, banks and idiotic buyers.
The MSB securities and the AAA ratings based on the real estate, proved fradulent.
Does it get any worse? YES.
The appearance of mended balance sheets through capital injections will prove to be an illusion. Recessions in Europe; the U.S. and Asia...
will cause more borrowers to default and further reduce the value of corporate and consumer loans held by banks.
As nattered before, this is the fallout and economic winter; the BK's; LBO failures and economic malaise are just starting.
Those who were killed at ground zero, were lucky.
and for fear prices will go lower... everyone with half a brain is selling everything they can for whatever liquidation price can be had. Why?
Because tomorrow it may be worthless. Why? In "Worthless As Tulips" we explained why the ratings issued on the securities are worthless.
Plunging real estate, never worth even 30 cents of its peak price, only worth it to greedy flippers, banks and idiotic buyers.
The MSB securities and the AAA ratings based on the real estate, proved fradulent.
Does it get any worse? YES.
The appearance of mended balance sheets through capital injections will prove to be an illusion. Recessions in Europe; the U.S. and Asia...
will cause more borrowers to default and further reduce the value of corporate and consumer loans held by banks.
As nattered before, this is the fallout and economic winter; the BK's; LBO failures and economic malaise are just starting.
Those who were killed at ground zero, were lucky.
Comments