fortis has a great crystal ball for this purpose. it is a shame it didnt work when they took the decisions that "almost" lead them to bankruptcy.
what he does not understand is that we have large accounting firms who can help our upside down companies juggle their books indefinitely. As long as the fed is injecting cash we can inflate our way out of this. And that is the plan. Delay recognition of losses - let air out of real estate bubble slowly. Inflate out of debts. It is a good plan if you had allowed trillions of junk loans to go out the window as you loosened lending standards in the late stages of a bubble. I suspect when the feds has collected all the deeds to the important pieces of property. It will recognize inflation and allow the assets to recover. It will then return the property in exchange for us joining a one world currency.
which bank in its sane mind would come out saying that we almost went bust...and by the way the whole financial system is about to go down the drain? wtf?
One that's telling the truth? If U.S. does suffer complete crash, Fortis gains a lot of credibility. And credibility is paramount in a time of crisis.
We can't inflate out of the problem this time. I've had exhaustive debates with others on this point, and because the U.S. was consuming at such a marginally higher rate than any other country in history for the last five years (including the U.S. before 2002),U.S. consumers can literally resist many inflationary forces. The $5 pizza, the deflated (by 30% t0 50%) but unsold homes, the buy one get one free dinners, the loss leaders at Wal-Mart....even gasoline (Americans cut back on the number of miles driven the most since 1979, I believe, and will cut back more). Ask retailers, even grocery stores, which items are selling - the things are clearance or sale. Nope. Even the McMansion has been killed in favor of small, energy efficient homes and condos. This time, Americans will conserve, which will lead to demand destruction, and deflation. The euro is about to get obliviated, too. Those claiming the yen will appreciate are insane. Japan's economy is the most export reliant in the world - their central bank will cut interest rates to 0% if need be. If all this transpires, commodity-dependent nations such as Brazil and Russia will have a full blown economic crisis. And China's wage gains in its manufacturing sector will be set back 8 years, too.
Totally agreed. That's exactly what's happening, FED is printing money, they don't publicate how much anymore ( http://www.federalreserve.gov/releases/h6/discm3.htm ) and use that to inflate the banks out of their problems. However, keep in mind that Fortis is mainly talking about the smaller banks and I do think that the FED isn't going to save (all of) them.
Even Bernanke is quoted as saying there will be bank failures and the FDIC is looking to temproarly increase its staff.
Patriots? USA people are the weakest ,most ignorant ,naïve and thanks to privet media-most brain washed nation in the World, so many different colors ,religions ,nationalities, languages (we are so divided) unable to unite and stand for our country that is why we are going down . There are many PATRIOTS that stand for truth and scream about it, but we call them nuts⦠Soon we are going to have microchips implanted and total slavery controlled by few. http://www.youtube.com/watch?v=biShr2xSnPE&hl=en