ROSNER: LOSSES WILL BE STAGGERING
20 April 2009 by TPC
2 Comments
Good interview here with Josh Rosner.
“We’re about to see the [losses] really start in earnest. I think [this period is] actually where the bank crisis spreads from the 19 or so of the largest banks into the 8,500 banks in our country….”
“I think [these losses haven't] been accounted for in [the banks loan-loss’ provisions heretofore very acceptably. And I think the loss rates are going to be staggering. And I think that’s where we going to realize that the crisis is redoubling upon itself.”
More on this topic
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Banks that won’t break the bank
(Real Wealth - Global Wealth Report, 3/2/09)
Mr. Mustard Seed
(BS on the Market, 3/12/09)
From the Banking Officialdom: So This is Meant to Reassure?
(naked capitalism, 2/23/09)
How Bad Is Banking? And Who Are The FDIC Four?
(The Curious Investor, 3/4/09)
It's difficult to see any other option but the complete nationalization of the banks. We already have a de facto nationalization but with the government trying to protect bond holders and share holders. As earnings continue to deteriorate market cap almost has to go to zero, at which point the government has no choice but to step in and take over. What am I missing?
You're not missing anything. This is a debt crisis caused by too much debt. A certain portion of that debt must be eliminated because it can't be serviced. The only way to do that is to go thru FDIC receivership…TPC has been calling for this for almost a year.
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