- Joined
- Apr 23, 2002
- Professional Status
- Certified General Appraiser
- State
- Oregon
US banking won't survive in its current shape and its death will be painful.
DEATH is God's quiet way of saying slow down. Something more powerful than God, the US banking system, has been tapped on the shoulder and the Flaming Star flames no more. This will affect us all, but before we race to withdraw our deposits, or call super funds, or before we panic as great and powerful financial institutions far away fall, consider that most of the terrors in store are not matters that will bring National Australia Bank, ANZ, Commonwealth Bank or Westpac, or most of our pillars of finance, down.
How can companies such as Bear Stearns, worth more than $US70 a single share, be found to be insolvent and worthless?
The shotgun marriage between Bank of America and Countrywide may be the next cause of a fresh banking crisis as it is the most obvious source of immediate, mutually assured destruction.
S&P's decision late on Friday to downgrade both banks may destroy the plan to allow Bank of America to swallow Countrywide and its almost unfathomable debt. If that doesn't concentrate the minds of the global financial community, there is plenty else to look forward to.
http://business.theage.com.au/us-banking-system-is-doomed-20080624-2w9p.html
DEATH is God's quiet way of saying slow down. Something more powerful than God, the US banking system, has been tapped on the shoulder and the Flaming Star flames no more. This will affect us all, but before we race to withdraw our deposits, or call super funds, or before we panic as great and powerful financial institutions far away fall, consider that most of the terrors in store are not matters that will bring National Australia Bank, ANZ, Commonwealth Bank or Westpac, or most of our pillars of finance, down.
How can companies such as Bear Stearns, worth more than $US70 a single share, be found to be insolvent and worthless?
The shotgun marriage between Bank of America and Countrywide may be the next cause of a fresh banking crisis as it is the most obvious source of immediate, mutually assured destruction.
S&P's decision late on Friday to downgrade both banks may destroy the plan to allow Bank of America to swallow Countrywide and its almost unfathomable debt. If that doesn't concentrate the minds of the global financial community, there is plenty else to look forward to.
http://business.theage.com.au/us-banking-system-is-doomed-20080624-2w9p.html