click on image for better viewCompliments of QQQ Trader via The Big Picture
The above chart gives us an example of losses among 16 of the world's largest banks and investment houses - in less than two years.
You need to know that the bailouts will only work if much of that what was lost is replaced. When you hear the talking heads on CNBC, or the Keynesian Economists state "We must re-inflate the banks", what they mean is the government, which taxes you for its money, must give the banks the money they lost.
There just isn't enough money in the world to do that.
The only solution is to allow the banks that are bad to go bust. Then, and only then, can new banks be capitalized, unencumbered by malinvestment through fraudulent activity.
As Market Ticker puts it, "It will suck." But if we don't force the banks that made the bad decisions to live with them, their level3 accounting ledgers WILL cause Global Systemic Financial Meltdown. It is far better to have a short, deep recession, than a long, slow, painful depression.
Private investment money will not return until the bad assets at the bad banks are completely removed from the system. That means no recovery will take place until the bad banks, and their incompetent (at best) executives are removed from financial influence.
Of course, those responsible for us being at the edge of the abyss are crying for help, and crying foul that we dare suggest that their pay be limited. After all, they only lost a few hundred trillion dollars.
I say, this is America. If you don't like your job, go get another one. Oh, that's right, you guys just destroyed most of the good jobs.
Good Luck!
You need to know that the bailouts will only work if much of that what was lost is replaced. When you hear the talking heads on CNBC, or the Keynesian Economists state "We must re-inflate the banks", what they mean is the government, which taxes you for its money, must give the banks the money they lost.
There just isn't enough money in the world to do that.
The only solution is to allow the banks that are bad to go bust. Then, and only then, can new banks be capitalized, unencumbered by malinvestment through fraudulent activity.
As Market Ticker puts it, "It will suck." But if we don't force the banks that made the bad decisions to live with them, their level3 accounting ledgers WILL cause Global Systemic Financial Meltdown. It is far better to have a short, deep recession, than a long, slow, painful depression.
Private investment money will not return until the bad assets at the bad banks are completely removed from the system. That means no recovery will take place until the bad banks, and their incompetent (at best) executives are removed from financial influence.
Of course, those responsible for us being at the edge of the abyss are crying for help, and crying foul that we dare suggest that their pay be limited. After all, they only lost a few hundred trillion dollars.
I say, this is America. If you don't like your job, go get another one. Oh, that's right, you guys just destroyed most of the good jobs.
Good Luck!
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