FedUpUSA

Bear Porn: Collapse Of Large Banks In 2011

 

If you want someone with more “panache” that is singing from the same hymnal that I’ve been for the last three years, here you have it….

Selected quotes….

Mounting cash flow stress on all lenders is reaching crisis levels. Non-payment by borrowers and mounting foreclosure backlogs are creating the conditions for the collapse of some of the largest U.S. banks in 2011.

The largest U.S. banks remain insolvent and must continue to shrink. Failure by the Obama Administration to restructure the largest banks during 2007-09 period only means that this process is going to occur over next three to five years whether we like it or not. The issue is recognizing existing losses not if a loss occurred.

Impending operational collapse of some of the largest U.S. banks will serve as the catalyst for re-creation of RFC-type liquidation vehicle(s) to handle the operational task of finally deflating the subprime bubble. End of the liquidation cycle of the deflating bubble will arrive in another four to five years.

“Subprime is (still) contained.”

No it’s not.

Ignore Institutional Risk Analytics at your own (considerable) risk.  Just remember, before listening to the banking “wonks”, Dick Fuld said he was gonna “burn the shorts”, and it was his shorts that caught on fire.

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