Do you think most major banks are solvent? Except Wells Fargo and a select set of mid-tier banks, the rest are bankrupt considering their CDS exposures.
What is CDS exposure?
To be fair the only banks that I know are solid are Wells Fargo, Bank of America and US Bank..
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.
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.