I forgot to mention this solution, as I see more talk about nationalizing big banks that are set to lose more money this year and become insolvent. The good news is, they are already insolvent, and always insolvent, according to their debt to equity ratios. The bad news is they still don't know how insolvent because they haven't yet resolved their "computations" respecting those "bad mortgages" no doubt hoping they could unload all the worst "investments" on the feds, or get more money because of them.
Instead, write these down immediately to zero (creating certainty over the amount of the loss), suspend the capital requirements (to ensure lending without running afoul of federal rules) and federally insure all deposits under 250 thousand (in case there is a run for cash). That should cover most of us working stiffs.
Am I a genius? Or what?
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