Take away the change in accounting from Mark-to-Market to Mark-to-Whatever-You-Please and these banks are all insolvent. When you mess up the asset side of the banking equation the entire system implodes. It's nice and convenient for the banks to mark these assets to a price that makes the balance sheet look healthy and allows them to generate record profits. The only reason banks, like BAC, are not foreclosing on houses, and thereby allowing people to live in the house practically for free, is because doing so means they would have to realize the loss if they can't move the property in a short period of time at the price of something close to what they can Mark-to-Whatever-You-Please at.
Banks in Calif., Ill., Fla., Texas are shut down-
- Thread starter schizo
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Go back and check history of JP morgan during times like these--its ripe time for them to gobble these banks--there was an article on yahoo in 2008 about JPM wish i'd saved it that was promptly taken off about how JPM gobbled banks in 1908 and again in 1929 and now--on Washinton Mutual they made about 58$ billion before washington mutual decided to fight back.
Yes, yes, I know all that and more. But the scope of current problem is way too large to concern ourselves with helping out only one or two large contributors. Seriously, our future depends on this and yet the idiots in the government are playing hooky with the American taxpayers. There should be no distinction between "too big to fail" and "too small to survive". Every institution should be given equal treatment.
dO you really think with full majority the democrats wouldn't havebeen able to fix it all- I am democrat but seeing Harry Reid and Nancy fancy makes me puke and when you got leaders like that running the show don't expect things to change- change is all we have got left--- after the democrats are done spending- democrats or republicans it doesn't matter they are all leeches sucking the common mans blood