Not a lot of comment on this one as it is self-explanatory. Sudden Debt has a nice piece on how the banks are toast. Not just because of all the toxic debts, not because they have tens to hundreds of billions of bills to the taxpayers to repay, but because -even if you wipe the slate clean - their business model going forward is toast.
As Sudden Debt puts it, the act of avoiding risk by not lending is coming back to haunt the banks. After so many other business models are gone for them, like derivatives, M&A and the like, what remains is not enough to support them - at least not all of them. Now this begs the question, why are we so hell-bent on saving them all?
http://suddendebt.blogspot.com/2009/02/trouble-with-harry-or-ccc.html
Disclosures: None.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment