Sunday, September 21, 2008
More On the Bailout....there are No Magical Solutions.
So I am still plowing through the Morning Papers, trying to assess the damage and better understand Bailout Economics. This article very clearly says that there are still Banks in trouble, and not out of the clear and that there is still risk for the Taxpapers.
"The financial system has been battered by $500 billion in losses from the mortgage mess, and the International Monetary Fund has estimated the price tag could ultimately top $1 trillion.
The crisis has forced 11 federally insured banks and thrifts into failure this year. Another 117 banks and thrifts were considered to be in trouble in the second quarter — the highest level since 2003 — with the total assets of troubled banks tripling to $78 billion, according to the Federal Deposit Insurance Corp. The agency does not disclose which institutions are on its list, but on average, 13 percent of banks that make the list fail.
Christopher Whalen, senior vice president and managing director of Institutional Risk Analytics, has predicted that 110 banks with assets worth $850 billion are in danger of failing by next summer. He said the Treasury Department's rescue plan hasn't given him reason to be more optimistic."
There is no magic solution for this situation...and it has been years in the making...And Our Leadership was too busy War Mongering and Terra Mongering ....And the Delusional King of this Titannical Administration can still not bring himself to say the "R" Word....When Bush ran Arbusto and Harken into the ground , Daddy Bush came and bailed out Junior.....This is a Whole Different Kind of Bailout with Global Implications...a Disaster of Mythic Proportions...