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Source:
Ailing Banks May Require More Aid to Keep Solvent
STEVE LOHR
NYT, February 12, 2009
http://www.nytimes.com/2009/02/13/business/economy/13insolvent.html
In any great organization it is far, far safer to be wrong with the majority than to be right alone. —John Kenneth Galbraith
Asian currencies continue to sell off vs the $ on the heels of the news yesterday that South Korea said they will look into hot money inflows stemming from the $ carry trade and the Bank of Indonesia said they are looking into the foreign buying of bills. This follows the news a few weeks ago that Taiwan was limiting foreign deposit holdings and Brazil was taxing foreign inflow transactions. As I mentioned yesterday, we may have reached a short term pain threshold in terms of $ weakness and foreign countries are fighting back as they certainly won't wait for...
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February 13th, 2009 at 6:02 pm
Looks like CRE is the second biggest loser, dwarfing subprime. Is the bailout plan gonna cover this pointless overleveraged overbuilding also?
February 14th, 2009 at 12:30 am
So what’s going to happen on the next round. Will these guys actually start lending when we give them more money, or are you just going to have a repeat of this easily documented thieving from Wall Street? I’m really wondering.
February 14th, 2009 at 6:26 am
The commercial real estate is only beginning to unwind in most areas, which would mean that things will only get a lot worse. There’s a site called deadmalls.com you can get a feel nationally how awful things are in this space.
Then there is still more credit card and student loan problems coming as well as corporate bonds. I don’t see this ending quickly. You can certainly see where they will need more money. Banks are like owning a boat, a hole in the water in which you pour money. Have nice weekend