Wednesday, September 22, 2010

Quote du jour: From Christopher Whalen

Into the Meat-grinder: "The erosion of the profitability of the U.S. banking industry over the past two years under the glorious Summers-Geithner-Bernanke rescue scheme is the proverbial fly in the ointment for both major political parties. Democrats and Republicans alike are going to be fed into the meat grinder over the next several years as the banking sector deals with literally hundreds of billions of dollars in direct and indirect expenses from the deflation of the mortgage bubble....

The economic carnage that will causes these losses.... is going to represent the worst economic contraction since WWI... And frankly nothing that either the Fed or Treasury does in the near-term can change this basic economic fact of restructuring. Banks... can impose moratoriums and issue press releases, but the losses remain. It is only a question of when they are recognized." (Read more at Institutional Risk Analyst)

No comments:

Post a Comment