City to implode eventually
Bank Implode O Meter has some serious "fun" these days as everything they ever predicted is happening exactly as they predicted. Its by now a safe bet to look at the website and see what financial woes coming next. First of all the bailouts ainīt working other then to maintain the status quo just a tiny bit longer. First 700 billion now another 7 trillion and all it does it throwing it to the monsters.
Just as Mish long ago predicted this behemoth will not survive with its current high risk, over leveraged business model, the model which took it from the biggest bank on the planet to one on the brink, on life support. Which means that leveraged reckless speculation can build bad assets faster than all the bailouts put together can bail it out which means that and any new fangled, derived short term credit crack fix will transfer the patient from intensive care to the morgue, which means that it would better to shoot the patient yourself than prescribe any those measures that served to put the bank in its condition.
More crank is a waste of time and money, but in the sociopathy of the elites driving the train wreck it is exactly what will be prescribed.
Who is footing the bill? American taxpayers and the frenzy canīt go on much longer because at one point the USofA will be bankrupt and there wonīt be anyone bailing them out.
Thats just Citygroup but there is now word on the street that Prime mortgages - you know those mortgages that had been token up by people who could actually afford a mortgage - are now going bust - the subprime market was just a tiny tiny percentage point of all mortgages the biggest chunk is the prime mortgages and its just a matter of time until that market completely collapses - then everything we have seen at the moment will look like a joke. Oh and credit card companies are starting to get worried too. The thing is that you can bailout banks as long as you want - if the people feeding the bank or take up credit are not able to feed the banks anymore because they have not even enough to feed themself then it might be that you put the money into the wrong site of the equation.
Oh and by the way a nice documentary where does the money come from"? Do you know it? I didnīt.