Post by sandi66 on Dec 18, 2007 9:32:38 GMT -5
By: pelicanbrief114
18 Dec 2007, 09:32 AM EST
Msg. 634381 of 634381
Jump to msg. #
It has been referenced
in recent past and the matter continues to remain at the forefront:
Many of the Globes top Financial Institutions, ARE/REMAIN in the state of:
I N S O L V E N C Y !!!!
How will the Books, or should we say, the Liabilities "OFF-THE-BOOKS", which represent TRILLION$$$$ NOT BILLION$$$$ be dealt with? Only in TIME will we know such answer.
It appears that the identical "PLAYBOOK" of yesteryears debacles (Enron; WorldCon; Adelphia etc..) have once again been utilized.
"Banks Are Insolvent, So Ease the Rules, Auditor Says
Increase DecreaseDecember 15, 2007 (LPAC)--Auditors are in a tough spot these post-Enron days, with the demise of Arthur Andersen on everyone's mind. If the auditors refuse to rubber-stamp the banks' fictitious valuations, the banks collapse,-- but if the auditors allow the fiction, they run the risk of being severely punished for malfeasance down the road. Hence the suggestion by Ernst & Young Item Club's Peter Spencer in today's London Telegraph, that the British "government must suspend a set of key banking regulations at the heart of the current financial crisis, or risk seeing the economy spiral towards a future that could `make 1929 look like a walk in the park'."
Spencer tries to blunt the clear meaning of his statement, by claiming that the banks are refusing to lend to each other, not because they are insolvent, but rather that they are being prevented from lending to each other by overly restrictive government regulations! The regulations he blames are the capital requirements set by the international Basel agreements, which require the banks to have an 8 percent capital reserve, which Spencer said should be cut to about 6 percent.
In reality, the idea that a mere 2 percent reduction in capital requirements would head off a crisis that would make 1929 look like a "walk in the park," is absurd, as both Spencer and the Telegraph know. What the auditors are really saying, is that the banks are already insolvent, and that the capital requirements must be lowered so that the auditors can continue to certify their books. Which is only an indirect way of admitting the banks are indeed insolvent, despite his denial."
Remember, Band-Aides (Fed Rate Cuts/Auctions) won't/don't contain a Hemorrhage. Severe/Dire circumstances require tough and perhaps painful measures.
While the Mainstream media, both television and print, persist in attributing todays fiasco to Subprime lending activities (Minute in the Grande Scheme) in order to placate and maintain some semblance throughout without causing widespread panic,what we are really witnessing is none other than the very beginnings of the UNWINDING of the Derivatives ($500+ Trillion- $ 1.4 Quad) Disaster that the "Oracle of Omaha" once so apropos decried as the Financial "WMD's".
We remain in the early Innings of this ballgame.
Protect and Govern thyself!!!!
Got Gold/Silver/Hard A$$ET$?
Got CMKX? :-)
Happy Holidays!!!!
ragingbull.quote.com/mboard/boards.cgi?board=CMKI&read=634381
18 Dec 2007, 09:32 AM EST
Msg. 634381 of 634381
Jump to msg. #
It has been referenced
in recent past and the matter continues to remain at the forefront:
Many of the Globes top Financial Institutions, ARE/REMAIN in the state of:
I N S O L V E N C Y !!!!
How will the Books, or should we say, the Liabilities "OFF-THE-BOOKS", which represent TRILLION$$$$ NOT BILLION$$$$ be dealt with? Only in TIME will we know such answer.
It appears that the identical "PLAYBOOK" of yesteryears debacles (Enron; WorldCon; Adelphia etc..) have once again been utilized.
"Banks Are Insolvent, So Ease the Rules, Auditor Says
Increase DecreaseDecember 15, 2007 (LPAC)--Auditors are in a tough spot these post-Enron days, with the demise of Arthur Andersen on everyone's mind. If the auditors refuse to rubber-stamp the banks' fictitious valuations, the banks collapse,-- but if the auditors allow the fiction, they run the risk of being severely punished for malfeasance down the road. Hence the suggestion by Ernst & Young Item Club's Peter Spencer in today's London Telegraph, that the British "government must suspend a set of key banking regulations at the heart of the current financial crisis, or risk seeing the economy spiral towards a future that could `make 1929 look like a walk in the park'."
Spencer tries to blunt the clear meaning of his statement, by claiming that the banks are refusing to lend to each other, not because they are insolvent, but rather that they are being prevented from lending to each other by overly restrictive government regulations! The regulations he blames are the capital requirements set by the international Basel agreements, which require the banks to have an 8 percent capital reserve, which Spencer said should be cut to about 6 percent.
In reality, the idea that a mere 2 percent reduction in capital requirements would head off a crisis that would make 1929 look like a "walk in the park," is absurd, as both Spencer and the Telegraph know. What the auditors are really saying, is that the banks are already insolvent, and that the capital requirements must be lowered so that the auditors can continue to certify their books. Which is only an indirect way of admitting the banks are indeed insolvent, despite his denial."
Remember, Band-Aides (Fed Rate Cuts/Auctions) won't/don't contain a Hemorrhage. Severe/Dire circumstances require tough and perhaps painful measures.
While the Mainstream media, both television and print, persist in attributing todays fiasco to Subprime lending activities (Minute in the Grande Scheme) in order to placate and maintain some semblance throughout without causing widespread panic,what we are really witnessing is none other than the very beginnings of the UNWINDING of the Derivatives ($500+ Trillion- $ 1.4 Quad) Disaster that the "Oracle of Omaha" once so apropos decried as the Financial "WMD's".
We remain in the early Innings of this ballgame.
Protect and Govern thyself!!!!
Got Gold/Silver/Hard A$$ET$?
Got CMKX? :-)
Happy Holidays!!!!
ragingbull.quote.com/mboard/boards.cgi?board=CMKI&read=634381
