"If unemployment reaches 12% US Banks risk models will completly fail"

[Daal]

buckle up, equity capital in large banks still "scary low"
http://www.cnbc.com/id/15840232?video=1067550882&play=1

 

[gnome]

All makes sense then. The REAL unemployment rate is already > 12%.

 

[DebiFortunato]

Right, we are there already look for unemployement to accelerate in 2010

 

[makloda]

And as Hussman outlined, the toxic asset buyout plan will do NOTHING to improve the equity capital position of banks, it merely improves the QUALITY of the bank balance sheet, replacing junk valued at $X with $X amount in cash.

 

[Daal]

Quote from makloda:

And as Hussman outlined, the toxic asset buyout plan will do NOTHING to improve the equity capital position of banks, it merely improves the QUALITY of the bank balance sheet, replacing junk valued at $X with $X amount in cash.

True. Maybe I'm wrong, yet I keep hearing folks saying everybody will overpay for the assets and I'm thinking 'a cheap put and financing will turn everyone into drunk gamblers?'