Posted on 10/02/2011 4:05:19 PM PDT by blam
For later.
Yes, and that means Debt Deflation on an enormous scale. All of this "dead wood" must be cleared via bankruptcy. Losses.
All the money the Fed has injected into banks does not begin to cover losses on this scale...especially since they just turned around a "invested" that money into additional falling assets.
It's likely the banks are in worse shape now than they were in 2007. Almost all new "assets" are toxic or soon will be.
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