The Market Ticker – Gee, The Banks Are (Still) Insolvent?

My gosh, how did that get out into the media?  You wouldn’t know it from the market today….

If we do not see a meaningful recovery in home prices by the end of the year, we may need to contemplate impairment charges on first liens owned by banks and wholesale write-downs of second lien exposures. This implies solvency issues for BAC [BAC 11.675 -0.015 (-0.13%) ] , WFC [WFC 28.19 0.05 (+0.18%) ] , JPM [JPM 42.91 0.12 (+0.28%) ] and C [C 41.11 0.14 (+0.34%) ] , and big losses for the U.S. government and private investors,” says Chris Whalen of Institutional Risk Analytics.

Solvency issues eh?  You mean mark-to-market suspension was just another way to lie?


Exactly as I’ve noted – this sort of lying is not only pernicious it’s ridiculously dangerous, as eventually the truth always shows up.  When you get to the point that you can’t pay the light bill any more the lies are not only exposed but the damage you allowed to accrue by pretending and dissipating further value during that time makes the eventual losses worse.

Everyone remembers that Committee Meeting in 2009 with Kanjorski, right?  I sure do.  It marked the bottom in the stock market nearly to the day.

And if, as I have repeatedly said I believe since, it proves to have been nothing but a pack of BS and game-playing for the benefit of those banksters, then the former value at 666 was in fact too high as the dissipation since will have to be accounted for as well.

Buckle up folks.

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