I showed you the FDIC is already broke. Social Security is about to EXPLODE much sooner then the Government claims and Tax Revenue is way down the most since 1932 ! Do you like charts? Check these out.
"is there a ticking time-bomb for the US economy? And is the Obama administration, Congress, and the media not paying it sufficient attention? That seems to be the message of a government report released this week that drew not as much notice as it deserves."
On Tuesday, the Congressional Oversight Panel, which was set up to monitor the $700 billion Troubled Assets Relief Program (aka the Big Bank Bailout), put out another of its monthly reports, and this one notes that the Treasury Department has not used its TARP billions to purchase this junk--which includes both lousy commercial and residential mortgages and securities based on lousy mortgages--and that billions of dollars of toxic assets remain on the books, threatening the security of numerous financial institutions "
In other words, whoops. What's happened is that accounting changes have made it easier for banks to contend with these assets. But this bad stuff hasn't gone anywhere. It's literally been papered over. And it still has the potential to wreak havoc. As the report puts it: If the economy worsens, especially if unemployment remains elevated or if the commercial real estate market collapses, then defaults will rise and the troubled assets will continue to deteriorate in value. Banks will incur further losses on their troubled assets. The financial system will remain vulnerable to the crisis conditions that TARP was meant to fix.
So all those hundreds of billions spent by TARP were for naught?
In a conference call with a few reporters, Elizabeth Warren, the Harvard professor heading the Congressional Oversight Panel, noted that the biggest toxic assets threat to the economy could come not from the behemoth banks but from the "just below big" banks. These institutions have not been the focus of Treasury efforts because their troubled assets are generally "whole loans" (that is, regular loans), not mortgage securities, and these less-than-big banks have been stuck with a lot of the commercial real estate loans likely to default in the next year or two.
Given that the smaller institutions are disproportionately responsible for providing credit to small businesses, Warren said, "if they are at risk, that has implications for the stability of the entire banking system and for economic recovery." Recalling that toxic assets were once the raison d'etreof TARP, she added, "Toxic assets posed a very real threat to our economy and have not yet been resolved."
It's also frightening that this fundamental issue barely registers a blip on our collective Attention-O-Meter.
Anyone who has read about the last "great depression" knows that many small banks (just like what we see happening today) were eliminated, which meant a larger market share for the surviving big banks. Consolidation through contraction.
This "great depression," like the last one, has been by design. You do not even know if you can trust Elizabeth Warren or the FDIC. It is working out nicely again as our nations wealth is being transferred from the working middle class to the international banking cartel.
The last great depression brought us the imperial presidency and this one is designed for the next step -global governance by the international banking cartel. (Unknown commenter Larry). We all know NOW why the banks contributed so heavily to BO.
If any doubt remains read the following series of articles.
China is preparing not to help us but to help themselves, they know we are going down and they do not want to be on BO's sinking ship. Bo is worse than Hoover! If we were to reverse course pay down our debt END the Fed times would be hard for a while but that is not going to happen under BO so things will be far worse. Obama 08=Depression Soon not just a bumper sticker anymore.