Bear Porn: Collapse Of Large Banks In 2011 - Denniger

[interestrateripoff]

http://market-ticker.org/akcs-www?post=168384

If you want someone with more "panache" that is singing from the same hymnal that I've been for the last three years, here you have it....

Selected quotes....

Mounting cash flow stress on all lenders is reaching crisis levels. Non-payment by borrowers and mounting foreclosure backlogs are creating the conditions for the collapse of some of the largest U.S. banks in 2011.

The largest U.S. banks remain insolvent and must continue to shrink. Failure by the Obama Administration to restructure the largest banks during 2007-09 period only means that this process is going to occur over next three to five years whether we like it or not. The issue is recognizing existing losses not if a loss occurred.

Impending operational collapse of some of the largest U.S. banks will serve as the catalyst for re-creation of RFC-type liquidation vehicle(s) to handle the operational task of finally deflating the subprime bubble. End of the liquidation cycle of the deflating bubble will arrive in another four to five years.

"Subprime is (still) contained."

No it's not.

Ignore Institutional Risk Analytics at your own (considerable) risk. Just remember, before listening to the banking "wonks", Dick Fuld said he was gonna "burn the shorts", and it was his shorts that caught on fire.

Luckily it's all contained. Nothing to worry about....

And for some strange reason Bernanke wants to print funny money....

[Redcellar]

So what is meant by Operational Collapse? A vague term.

I collapsed on the sofa tonight and went online.

I didn't collapse from a fatal heart attack.

Get the point?

Edited for clarity.

Edited October 6, 2010 by Redcellar

[R K]

Failure by the Obama Administration to restructure the largest banks during 2007-09 period

You'd imagine he might remember who was in charge. Seems not.

[Redcellar]

You'd imagine he might remember who was in charge. Seems not.

Maybe typo, meant 2008-09?

Or was Obama in charge before he got the official nod

[Errol]

Nothing that the printing press won't fix. Step forward the printer in Chief - Mr. Ben Bernanke!

[General Congreve]

Full steam ahead on the Golden Goose Express

[council dweller]

Full steam ahead on the Golden Goose Express

Remind me. What happened to the Golden Goose?

Edited October 6, 2010 by council dweller

[General Congreve]

Remind me. What happened to the Golden Goose?

The guy who owns it wins the hand of the princess and lives happily ever after if I remember correctly.

http://en.wikipedia.org/wiki/Golden_Goose

Seems about spot on the money to me

Hmmmmm. Noticed HPC has started chopping links! WTF!!!

Edited October 6, 2010 by General Congreve

[Toto deVeer]

The largest U.S. banks remain insolvent and must continue to shrink. Failure by the Obama Administration to restructure the largest banks during 2007-09 period only means that this process is going to occur over next three to five years whether we like it or not. The issue is recognizing existing losses not if a loss occurred.

Meh... 3 to 5 years is outside Obama's time frame anyway. He certainly won't be around that long....