Tuesday, March 03, 2009

Questions Are Asked

Over on CR I was specifically asked:
Rob Dawg,

Need some help, I must be missing something....
1) these investment banks are allowed to keep these CDO's etc off balance and not mark them to market...

2) this means they virtually do not show up as asset or liability on books

3) Banks are , every quarter, writing off losses

4) What are these losses on if its not this off balance sheet shit?

5) If they are losing money and needing more , while not counting off balance shit, then should we be propping them up...

6) Again, where are these written down losses coming from?

7) and if there are this many losses without off balance sheet shit, then if you count losses on off balance sheet stuff, arent these banks virtually insolvent?


The big banks are without doubt insolvent. Call it all of them and not worry about the vanishingly small few caught incorrectly in that wide net.

Yes, the books are cooked and even with the understanding that they are cooked the banks still cannot meet the liar standards anymore.

Move all the deposits to the Credit Unions and run off the "assets" to new banks in a massive reset.

11 comments:

Jean ValJean said...

FIRST! (Sorry, brain is fried with work and responsibilities right now. Can't come up with a sentence incorporating FIRST. Hope you'll forgive.

H Simpson said...

Listening to Obama and Brit PM talk today on MSNBC , some financial person said afterwards that the reason the PM is here is to get the US to help bail out Europe since they are are in even worse shape.

Swell....

H Simpson said...

Anyone else had enough crap from the Bernie Maddoff saga?

The s.o.b. says feds cannot touch the 70 million he gave his wife even though all the money is illegal.

Is this like a bank robber saying the cops cannot take the money he stole back from his wife?

Time to toss Bernie, his wife, his father in law, dad, sons and all the executive board into jail as flight risks and let them rot a while as the feds get into their books. there is no money to be found. Just let the whole gang rot and let Vegas take odds on how long before someone sticks a shank into Bernie.

The nerve of that guy is amazing..

No wonder they do not get around to Casey

h.

Casey Serin said...

No wonder they do not get around to Casey

Remember that Madoff's Ponzi scheme would probably not have been exposed had the markets not crashed precipitously over the past few years. The markets crashed largely because of rabid idiots like myself.

Too bad law enforcement didn't really care about arresting me.

Son of Brock Landers said...

I am all for the orderly liquidation of Citi and the top 6 banks with their 70% of US deposits and assets. There are plenty of smaller banks that would bid on the goods.

W.C. Varones said...

Hey Rob,

I saw your comment about Jeff from SDCIA-- I haven't thought about that guy in years. Do you know what happened to him?

Teri said...

I have a few CDs, and checking account with one of the regional banks. What will happen if they go belly up? I know they're FDIC members but...

Centipede said...

Hey Casey!

I have been mapping your coordinates!

wagga said...

"like the arsonist who sets fire to a house then buys up the charred remains and resells it"

Lex said...
This comment has been removed by the author.
Lex said...

Sorry wagga, didn't see your post.