01-11-2009, 06:19 PM
I can't be remotely optimistic about any breakup of banks led by governments, advised no doubt by revolving door employees from the likes of Goldman Sachs and JP Morgan.
The big question is what is going to happen to the toxic debt?
No sane buyer will pay face value for it.
If the government puts it up for auction, then it'll become clear that the true market value of the trillions worth of toxic sludge is pennies on the pound. This willl instantly destroy the balance sheets of every bank in the world, and therefore this option won't be taken.
So, if the toxic debt can't be sold, the only outcome I can see is that we taxpayers will be forced to eat it.
The big question is what is going to happen to the toxic debt?
No sane buyer will pay face value for it.
If the government puts it up for auction, then it'll become clear that the true market value of the trillions worth of toxic sludge is pennies on the pound. This willl instantly destroy the balance sheets of every bank in the world, and therefore this option won't be taken.
So, if the toxic debt can't be sold, the only outcome I can see is that we taxpayers will be forced to eat it.
"It means this War was never political at all, the politics was all theatre, all just to keep the people distracted...."
"Proverbs for Paranoids 4: You hide, They seek."
"They are in Love. Fuck the War."
Gravity's Rainbow, Thomas Pynchon
"Ccollanan Pachacamac ricuy auccacunac yahuarniy hichascancuta."
The last words of the last Inka, Tupac Amaru, led to the gallows by men of god & dogs of war
"Proverbs for Paranoids 4: You hide, They seek."
"They are in Love. Fuck the War."
Gravity's Rainbow, Thomas Pynchon
"Ccollanan Pachacamac ricuy auccacunac yahuarniy hichascancuta."
The last words of the last Inka, Tupac Amaru, led to the gallows by men of god & dogs of war