Posted on 12/11/2008 6:03:58 PM PST by rabscuttle385
NEW YORK (Reuters) - Jim Rogers, one of the world's most prominent international investors, on Thursday called most of the largest U.S. banks "totally bankrupt," and said government efforts to fix the sector are wrongheaded.
Speaking by teleconference at the Reuters Investment Outlook 2009 Summit, the co-founder with George Soros of the Quantum Fund, said the government's $700 billion rescue package for the sector doesn't address how banks manage their balance sheets, and instead rewards weaker lenders with new capital.
Dozens of banks have won infusions from the Troubled Asset Relief Program created in early October, just after the Sept 15 bankruptcy filing by Lehman Brothers Holdings Inc (LEHMQ.PK). Some of the funds are being used for acquisitions.
"Without giving specific names, most of the significant American banks, the larger banks, are bankrupt, totally bankrupt," said Rogers, who is now a private investor.
(Excerpt) Read more at reuters.com ...
The whole government is bankrupt.
Too broke to even pay attention
Is a Credit Default Swap one of those insurance vehicles where if small number of failures exist you are covered, but in a situation where there are colossal failures everyone looses?
Kind of like commodities contracts, where if the price goes up you get less for your commodity, but if the price goes down the contract holder files bankruptcy? I have seen that happen. It is Heads I win, Tales you loose. Don’t like that setup.
well, gosh...
comrade obamao
will fix it,
won’t he?
/s
Jim, how are your Chinese and commodity stocks performing?
Glad to see that you’ve found a company that you are comfortable with.
Morgan Stanley downgrades ING, Aegon and Standard Life
http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSBNG34501620081211
ING May Shut Down $353 Million in New Zealand Funds (Update2)
(Bloomberg, so no link)
S&P Affirms ING Ratings; Outlook Revised to Negative
http://www.insurancejournal.com/news/international/2008/12/11/96215.htm
The looting of the American people by the financial sector continues, backed by their political lackies.
That type of terminology I can understand.
We are going to need something stronger than a prophylactic to protect us from the job we are going to get from (what someone else named him) Comrad Obama.
I am still in shell shock total dis-belief that he has really been elected.
What a mess!
I wasn’t addressing that point.
Because they bought or sold CDS?
I still think its going to get worse, and there is nothing Obama is going to do to stop it from unraveling.
considering the state many other major banks are in and the problems we’re experincing I’d say that you’ve just given me a significant endorsement. They have “troubles” but aren’t going under and have yet to beg for a bailout.
You don’t have to go into the whole mess of CDS to realize that our banks are insolvent. We’ve always known they were. After all, why is it that we’re constantly afraid of bank runs? Because they none of them cover their demand deposits with currency on hand. That alone makes them bankrupt, and it is nothing but the people’s faith that they’re not going to be the ones screwed if and when the system fails again that keeps the industry afloat.
This, of course, is not a moral crusade on my part. I’m just sayin, is all.
So they got their bailout without having to beg? Did they at least have to ask nicely? (You do know they got about $12 or $13 billion, don't you?)
"Savings and mortgage provider ING Direct has reassured savers that their money is safe following this week's €10bn (£7.8bn) injection of cash by the Dutch government."
http://www.guardian.co.uk/money/2008/oct/25/savings-banks
Full blown Depression by Fall '09...
I predict for the next several months for the economy to lose hundreds of thousands of job each month. Since 2/3rd’s of the economy is consumer spending, its going to get into uncharted waters.
They should hold 100% of their deposits in the vault?
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