Tuesday, January 20, 2009
Leading economist Nouriel Roubini said today that the U.S. banking system is "bankrupt" and "effectively insolvent":
“I’ve found that credit losses could peak at a level of $3.6 trillion for U.S. institutions, half of them by banks and broker dealers,” Roubini said at a conference in Dubai today. “If that’s true, it means the U.S. banking system is effectively insolvent because it starts with a capital of $1.4 trillion.” ***
“The problems of Citi, Bank of America and others suggest the system is bankrupt,” Roubini said. “In Europe, it’s the same thing.”
Polls show that Americans overwhelmingly think the government should stop providing money to the banks.
The people are right. Stop throwing our hard-earned taxpayer money at a corpse.
British banks are also "technically insolvent".