It really feels, that as with any area of our American economy and government, nobody knows anything. Banks are certainly betting on a government bailout, and everyone else is putting their heads in the sand. It will be an interesting time to see where this all ends.
Community banks ($1 B or less) typically do not have these problems. (Of course, they are also not run by “the smartest people in the room.”). If the big or so-called “small” banks do not destroy the entire banking system,it would be nice to see a predominantly community bank system emerge from this mess.
The big picture here is so alarming! Even though you have reassuringly explained to us the accounting mechanisms that could handle (most of) the toxicity here, I find the attitude of the banking industry appalling. I’m convinced of the ‘cynical’ view - that they are expecting to be bailed out by the government, because, come on, an entire industry of MBA Finance grads cannot be this incompetent! What an appalling mindset they have, expecting to be bailed out. Don’t they grasp that this could not only end the banking industry as we know it, but also bring down the entire economy?
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And Charles Said:
“Mummy, Why Can’t I Be King Of The World” ?
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It really feels, that as with any area of our American economy and government, nobody knows anything. Banks are certainly betting on a government bailout, and everyone else is putting their heads in the sand. It will be an interesting time to see where this all ends.
Community banks ($1 B or less) typically do not have these problems. (Of course, they are also not run by “the smartest people in the room.”). If the big or so-called “small” banks do not destroy the entire banking system,it would be nice to see a predominantly community bank system emerge from this mess.
The big picture here is so alarming! Even though you have reassuringly explained to us the accounting mechanisms that could handle (most of) the toxicity here, I find the attitude of the banking industry appalling. I’m convinced of the ‘cynical’ view - that they are expecting to be bailed out by the government, because, come on, an entire industry of MBA Finance grads cannot be this incompetent! What an appalling mindset they have, expecting to be bailed out. Don’t they grasp that this could not only end the banking industry as we know it, but also bring down the entire economy?