I have no doubt that this is true. The shell-game over the last 2 years or so has been to keep the bad assets the big banks are holding from seeing the light of day. As the purported admin official alludes to, it would be the end of them.
In essence, they're perpetrating a fraud by using fake accounting methods to pretend that bad assets are good assets until they can figure out what to do with them.
It seems the Northeastern bankster clans are waiting for substantial inflation in the near future so that at least the nominal value of these assets can come up to par.
IOW, they'll be able to say "see, these assets really are (finally) worth what we paid for them a few years ago - so we haven't lost anything and our books are now balanced." Sure, a gallon of milk might have tripled by that time and the dollar may full decline, but at least their bad assets will look good nominally speaking.
The bankster clans want inflation, it's part of their business plan. Of course inflation will will suck the rest of us dry, as will the hundreds of billions we've already given them - but they'll be okay.
In essence, they're perpetrating a fraud by using fake accounting methods to pretend that bad assets are good assets until they can figure out what to do with them.
To my mind, it appears that they are trying to figure out how to deflate a bubble without exploding it...gently.
VERY tricky to do.
Complicated by the rise of the East to challenge us for economic supremacy (while they refuse to transfer to true consumer-based societies (China) or to modernize infrastructure or give up cronyism (India).
Further complicated by the (relatively new) extent of derivatives in forms and amounts unconceived of during the Reagan years; "dark pools" outside of the erstwhile watchful eyes of US regulators; and the knowledge of the ever-present threat of a suicidal "rush to the exits" mere microseconds after a fatal mistake is made.
Add to that, the Marxist Obozo screwing up by nationalizing banks and industries *while* playing favorites to his cronies (Chinese "capitalism" there); and running the nation debt up to the point that the *interest alone* will be greater than Bush's TOTAL deficit.
Yikes.
NO Cheers, unfortunately.