New President, Same Problems
“I’ve found that credit losses could peak at a level of $3.6 trillion for U.S. institutions, half of them by banks and broker dealers,” Roubini said at a conference in Dubai today. “If that’s true, it means the U.S. banking system is effectively insolvent because it starts with a capital of $1.4 trillion. This is a systemic banking crisis.” [Read/Watch]
We hope we are wrong and that Obama will not be a further continuation of Bush's big government and growing socialist policies, but, alas, we see little hope that there will be any real change.