The entire banking system and likely The Fed, given the quantity of Fannie and Freddie paper it has been and is “eating”, is insolvent. These facts are why the government is lying – they’re well-aware of the near-zero cure rates and know that these facts mean that the banking industry has nowhere near sufficient capital to withstand these losses without folding like a paper cup getting stomped on by an elephant.
Well put and sadly true. Our entire banking system has been insolvent for some time, and this fact has been hidden from the public by a series of lies, misdirection and obfuscation. Read the rest at the link above.