Roubini's on a roll. I don't think it's melodramatic to think or say that equity holders in banks will get wiped out on a massive scale and that deflation puts the global economy into a death spiral from here on out. I'm not so sure that the central banks can stem the nasty and vicious deflationary plunge, resulting from consumer and business hoarding of all money.
basically the banks got robbed when they have bad loans. that is the whole business if banking is to take risk in lending money.
bankging and wall street has been deregulated for theives from mid 80's to 2006. regulators could even audit madoff operation that he had no shares and never made a trade for his clients. he was giving fake statements to his clients and giving fake statements to irs.
these insiders in the banks were lending money to thier welfare buddies and their dog. the dog defaulted on his loan
This is scary stuff. He could be right. He's not the only one predicting total disaster. I thought we had a better than even chance that Dow 7500 was the bottom, yet it seems like we're gonna test and breach that.
5% of the population pays 60% of the Feds' income taxes too.... if they lose revenue / get writeoffs, the FED loses revenue..
So they should load up the federal government so they can bail themselves out with themselves. Oh wait. Thats stupid.