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1929crash

More Trouble For Banks

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Watch the video.

It's a fascinating discussion involving Elizabeth Warren, head of the Congessional Oversight Panel on the bailout money.

She says bank balance sheets are not transparent because toxic assets no longer have to be marked to market i.e. priced at market values. So they lie on balance sheets, overpriced and no one dares sell them, because the true asset values would be exposed.

Apart from that big problem coming our way, there is a wave of corporate mortgae defaults heading towards us, which will probably hit the medium sized US banks disproportionately.

http://www.zerohedge.com/article/elizabeth...-problem-coming

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:lol: oh god they made her the chair of the Congressional Oversight Panel overseeing TARP. I must have missed that.

Well, it's still worth watching the video IRSS.

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Watch the video.

It's a fascinating discussion involving Elizabeth Warren, head of the Congessional Oversight Panel on the bailout money.

She says bank balance sheets are not transparent because toxic assets no longer have to be marked to market i.e. priced at market values. So they lie on balance sheets, overpriced and no one dares sell them, because the true asset values would be exposed.

Apart from that big problem coming our way, there is a wave of corporate mortgae defaults heading towards us, which will probably hit the medium sized US banks disproportionately.

http://www.zerohedge.com/article/elizabeth...-problem-coming

Two threads started on this last night, but it's worth repeating. Warren is at the coal face so she should know.

She seems to be suggesting that we are being lied to left, right and centre with all this mark to myth bullsh*t. Most of the banks are utterly fu*ked apart from maybe JPM and GS. I suspect it will start to become clear once the Option ARM, Alt-A, CRE and credit card defaults gather pace towards the end of this year.

2010 looking like carnage as she suggests.

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I like the feel-good coldplay track playing the background that fades in in the last 25 seconds and the presenter saying "you know what - I'm glad the too-big-to-fails came to an end on September 15th".

Perhaps the US sees it as a new beginning?

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Green shoot acceptance will be compulsory from 2010.

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Two threads started on this last night, but it's worth repeating. Warren is at the coal face so she should know.

She seems to be suggesting that we are being lied to left, right and centre with all this mark to myth bullsh*t. Most of the banks are utterly fu*ked apart from maybe JPM and GS. I suspect it will start to become clear once the Option ARM, Alt-A, CRE and credit card defaults gather pace towards the end of this year.

2010 looking like carnage as she suggests.

Sibley should be forced to watch this.

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Sibley should be forced to watch this.

No chance. He wouldn't watch it and even if he did he wouldn't understand it.

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Two threads started on this last night, but it's worth repeating. Warren is at the coal face so she should know.

She seems to be suggesting that we are being lied to left, right and centre with all this mark to myth bullsh*t. Most of the banks are utterly fu*ked apart from maybe JPM and GS. I suspect it will start to become clear once the Option ARM, Alt-A, CRE and credit card defaults gather pace towards the end of this year.

2010 looking like carnage as she suggests.

She's an academic, so she's not at the coal face. I don't know what to make of her.

I was impressed by her lecture on credit and the con job of two-income families, and she's clearly a decent person. But this guy - who is at the coal face - is caustic about her abilities on bank oversight (selection of blog posts):

http://economicsofcontempt.blogspot.com/search?q=warren

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She's an academic, so she's not at the coal face. I don't know what to make of her.

I was impressed by her lecture on credit and the con job of two-income families, and she's clearly a decent person. But this guy - who is at the coal face - is caustic about her abilities on bank oversight (selection of blog posts):

http://economicsofcontempt.blogspot.com/search?q=warren

Would you not think that her being on the "Congessional Oversight Panel on the bailout money" means she has access to the information on the state of the banks?

Why on earth would she make this up if she has not personally seen evidence of it? That makes no sense.

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@1929crash,

Do you ever listen to Max Keiser radio? He's been talking about this 'off sheet' accounting swindle for nearly two years. This is just an organized fraud. Tyler over at zerohedge has been saying the same thing too of course.

It was illegal when Enron did it, but due to the scale and deep rooted corruption and collusion within the state, it has now become legal for these banks to 'reclassify' these bad debts and start claiming 'profits' just so that they can ge their bonuses.

Problem is, these debts are still there, and the government is doing its upmost to obsure the truth.

In the mean time, Paulson has guaranteed the banks an almost unlimited flow of fresh, 0% loan capital courtesy of the taxpayer. Same with us over here.

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@1929crash,

Do you ever listen to Max Keiser radio? He's been talking about this 'off sheet' accounting swindle for nearly two years. This is just an organized fraud. Tyler over at zerohedge has been saying the same thing too of course.

It was illegal when Enron did it, but due to the scale and deep rooted corruption and collusion within the state, it has now become legal for these banks to 'reclassify' these bad debts and start claiming 'profits' just so that they can ge their bonuses.

Problem is, these debts are still there, and the government is doing its upmost to obsure the truth.

In the mean time, Paulson has guaranteed the banks an almost unlimited flow of fresh, 0% loan capital courtesy of the taxpayer. Same with us over here.

Enron was the biggest neon flashing warning sign about corporate fraud in history, yet it became the manual. For shame.

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Exactly we shouldn't do negativity it's not good for us.

Happy clappy only please.

If we think green shoots we'll get green shoots.

well, as a friend said to me, its hard, but if we get an order, we build it. If we get two we build them. If we dont get any, we dont build anything.

so we take what we can when we can.

This is life under the recession.

be happy as and when you can.

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