Saturday, Jan 17, 2009
Clowns wearing suits
Independent: British banks are 'technically insolvent'
'Britains biggest banks are "technically insolvent", Royal Bank of Scotland said yesterday, as the global banking industry was rocked by another day of turmoil, including the announcement of $23bn (£16bn) of new losses from Merrill Lynch and Citigroup, the giant US institutions. Analysts working for RBS, one of several British banks to have received emergency funding from the UK Government last year, told the City that "the domestic UK banks are technically insolvent on a fully marked-to-market basis".' A remarkable achievement for a business that can literally create money as other people's debt.
Posted by quiet guy @ 12:48 PM (847 views) Add Comment
9 Comments
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1. new user 2007 said...
After all these bailouts and ringfencings, as well as £100bn being given to effectively support new lending, we still have £600bn or so in FLOWS needed because of the closure of money markets, just to get close to 2007 lending levels i.e. the unsustainable level! Oh dear:)
2. troy said...
Legendary investor Jim Rogers said today on CNBC that Paulson and Bernanke should resign for keeping “zombie banks” alive as they should be allowed to fail. Rogers cited the example of the Japanese government which had refused to let their financial institutions fail in the 1990s. He said, “It’s 18 years later and their stock market is 75 or 80 percent below what it was 18 years ago.”
http://www.dailymarkets.com/economy/2008/10/22/jim-rogers-paulson-and-bernanke-should-resign/
3. Robertpaulson said...
hmm.. that appears to have been pulled from their website pretty quick.
4. letthemfall said...
I note that none of these bankers is made to account for the disaster they have unleashed. The odd one is hauled in front of congressional and select committees, but have any had to give back anything of the absurd sums they creamed off? I don't think so. At the end of all this most if not all will still be undeservedly wealthy.
5. Letthemfall said...
I note that none of these bankers is made to account for the disaster they have unleashed. The odd one is hauled in front of congressional and select committees, but have any had to give back anything of the absurd sums they creamed off? I don't think so. At the end of all this most if not all will still be undeservedly wealthy.
6. P. Riddy said...
Thieves in suits. Government and bankers? Just the biggest gang in town.
7. troy said...
This Year: Global Insolvency? ~~~ http://georgewashington2.blogspot.com/2009/01/this-year-global-insolvency.html
The forecasters at Leap2020 (who have been right in many of their predictions, but wrong in large calls such as the timing of the collapse of the dollar) are predicting that 2009 will be an unfolding year of worldwide insolvency:
A new sequence of the fourth phase (so-called "decanting phase") of the unfolding global systemic crisis has began: the sequence of global insolvency.***
Contrary to what political leaders and their central bankers seem to believe worldwide, the problem of liquidity that they are striving to solve by means of historic interest rate drops and unlimited money creation, is not a cause but a consequence of the current crisis. It is in fact a problem of solvency***
The situation prevailing today throughout the entire global financial system, a large part of the world economy and all the economic players (including States) who based their growth on debt in the past years. The crisis translates and magnifies a problem of global insolvency. The world is becoming aware of the fact that it is a lot poorer than it used to believe in the last decade. And 2009 is the year when all the economic players must try to assess their real level of solvency, knowing that many assets are still losing value.
Moreover a growing number of ~~~ investors ~~~ no longer trust the traditional instruments and indicators of measurement.
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9. fjcruiser said...
The governments all know the banking system is insolvent. Their propaganda tell us there is a liquidity crisis. How can there be a liquidity crisis when the government can just print as much money as they want.the system needs to purge itself from its excesses, its monopolies,its distortions and then we can go back to a free market economy.