Comments on: Jim Rogers: Most U.S. Banks “Bankrupt”

By: WaltFrench

WaltFrench — Sun, 14 Dec 2008 23:43:38 +0000

Wish there were better accounting to justify the claim, which I actually presume is true.

I also presume that for Paulson to announce the fact as such would be to lock up the world’s economy in a few minutes: no credit cards, no checking accounts, no securities clearing… and that therefore, it would be the height of folly to intimate that it even might be true.

I further wonder how, given the market-valuation of assets, ANY bank could ever be sound in a deflationary world. The capital ratios would have to be much higher than the possible downward revaluation of assets, and who knows what the maximum percent downward should be… 50%? That’d make running a bank extremely unprofitable.

Can anybody explain how we’re going to target reflation of all the banks’ assets without oh, doubling the CPI index in pretty short order?

By: lhansen715

lhansen715 — Sat, 13 Dec 2008 23:11:42 +0000

Lots of opinion, a scarcity of truth, time will tell what the world is headed for: INFLATION vs DEFLATION. Thus remember to follow the advice of a classic slogan, “Just remember, whatever happens, just make sure it doesnt happen to you.

Cowboy/Crony Crapitalism maybe over for this term…………will it happen again, YEP, seems to be the nature of man.

By: BG

BG — Sat, 13 Dec 2008 12:44:10 +0000

Thanks Man!! That was Quick!

http://www.ritholtz.com/blog/2008/12/some-things-should-not-be/

By: BG

BG — Sat, 13 Dec 2008 12:36:28 +0000

Barry, I hope you can post more articles speaking to the repercussions of the current US Treasury Bond Market BUBBLE! I know the rest of the world loves us for all of the things we do; but, I don’t think they are going to continue to accept negative returns on their US Treasuries for any significant amount of time.

In addition, I suspect they love us so much that they will fuck us the very first chance they get. Frankly, we deserve no less!! Turn-about is fair play, right? So in preparation for what is now unavoidable, please post items that will help us preserve our net-worth, when interest rates & inflation sky-rockets as we consider using our “legal-tender” as toilet paper. As you know, commodities took off this week, so the turn may have already occurred.

Having experienced the stock-market bubble of 2001, the real-estate bubble of 2006, one must be a complete idiot not to be preparing for the bursting of the Bond-Market bubble of 2008.

Send Help!!

By: DavidB

DavidB — Sat, 13 Dec 2008 09:06:34 +0000

I guess the consolation prize is that if they give all this money to incompetent people it will just be destroyed faster and thus the inflation problem in this ponzi scheme will be solved. I never realized there was a self correcting mechanism in klepto socialism.

The bonus is that when you give it to incompetent people they’ll probably just end up losing it all back to the competent ones anyway. And this way you don’t have to feed them. The competent ones always find a way to survive. It is the incompetent ones we end up having to feed when they shoot their feet off

By: Whammer

Whammer — Sat, 13 Dec 2008 07:58:27 +0000

@Grego658, thanks. She’s going as a volunteer, a short “engagement”, should be OK…

By: Greg0658

Greg0658 — Sat, 13 Dec 2008 03:29:05 +0000

wunsacon says “Maybe the GM money is better spend building shelter …”
Imo each community should have a commune type shelter, food kitchen and medical center. Anyone can stay as long as they wish or need. Should be cheaper than prisons to operate. Adult kids and the destitute can network and figure a plan out into the promised land.

Whammer says “daughter is going down there to work”
Didn’t say if it was volunteer or not. Tell her to keep her own health priority one. On volunteering … been doing that all my life to some extent … its been a world of experience – profitable to me in $s, not so much.

By: A. Bailor of Calif

A. Bailor of Calif — Sat, 13 Dec 2008 03:14:20 +0000

Jim Rogers is very colorful and entertaining. I have followed him for years I have seen him right and wrong like every one. He makes sense talking about the fundementals in the commodity markets. I however trade them using TA only with stop losses etc. How does he know most major banks are bust?? Where does he get his knowledge from? Everyone just thinks he said it so it must be right.

By: Whammer

Whammer — Sat, 13 Dec 2008 01:32:48 +0000

If only we repealed the CRA, then the banks would all be fine!!

@wunsacon, people are still displaced by Katrina. My daughter is going down there to work on a rehab project……….

By: lhansen715

lhansen715 — Sat, 13 Dec 2008 00:44:01 +0000

Jim Rogers if he werent so often correct, and in the company of knowlegeable, intelligent and competent people like Gerald Celente, Nassim Taleb, Nouriel Roubini, Marc Faber, Peter Schiff, James Kunstler, Michael Panzer, Bill Bonner, etc, etc ad nausem who have been predicting for years exactly what is coming to pass. “One has a choice, you can curse the darkness, or light a candle.” The preceding list of people have provided the candle.