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(Reuters) - Some large U.S. banks, may require more aid to stay solvent, the New York Times reported on Friday, citing economists and other finance experts.
A sober assessment of the growing mountain of losses would overwhelm the value of the banks' assets, the paper reported.
"The United States banking system is effectively insolvent," it quoted Nouriel Roubini, a professor of economics at the Stern School of Business at New York University, as saying.
He estimates that total losses on loans by U.S. financial firms and the fall in the market value of their assets will reach $3.6 trillion, up from his previous estimate of $2 trillion, according to the New York Times.
Adam Posen, a senior fellow at the Peterson Institute for International Economics, was quoted as saying that the government would have to play a more prominent role in sorting out the banking industry.
"Putting it off only brings more troubles and higher costs in the long run," he said. "At this moment, the liabilities they have far exceed their assets," he added. "They are insolvent."
Originally posted by Hx3_1963
reply to post by projectvxn
The World REALLY can't Afford to put anymore into these Zombie Institutions...they need to Fail...the Sooner the Better...Watching CNBC right now and their London Reporter just said as much......I THINK some People are STARTING to FINALLY Realize this...
Angry America And The Bailout
A MUST READ...some nice Cussing
[edit on 2/13/2009 by Hx3_1963]
Under the merciless glare of Congressional hearings, above all the Senate's Pecora Committee (named after its bulldog chief counsel Ferdinand Pecora), it was revealed that Jack Morgan and his partners in the House of Morgan hadn't paid income taxes for years; that "Sunshine" Charlie Mitchell, head of National City Bank (the country's largest), had been short-selling his own bank's stock and transferring assets into his wife's name to escape taxes; that other financiers just like him, who had been hero-worshiped for a decade or more as financial messiahs, had regularly engaged in insider-trading schemes that made them wealthy and fleeced legions of unknowing investors.
A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain. - Mark Twain
The world is divided into people who do things - and people who get the credit. - Dwight Morrow
Is there anyone I wouldn't take as a client? Well, I'd never represent a banker. - Gerry Spence
Banks have a new image. Now you have 'a friend,' your friendly banker. If the banks are so friendly, how come they chain down the pens? - Alan King
Because bankers measure their self-worth in money, and pay themselves a lot of it, they think they're fine fellows and don't need to explain themselves. - James Buchan
Bankers know that history is inflationary and that money is the last thing a wise man will hoard. - Will Durant
But if you want to continue to be slaves of the banks and pay the cost of your own slavery, then let bankers continue to create money and control credit. - Josiah Stamp
I went to the bank and proposed that they lend money to the poor people. The bankers almost fell over. - Muhammad Yunus
The history of the last century shows, as we shall see later, that the advice given to governments by bankers, like the advice they gave to industrialists, was consistently good for bankers, but was often disastrous for governments, businessmen, and the people generally. - Carroll Quigley
We will have a world government whether you like it or not. The only question is whether that government will be achieved by conquest or consent. - Paul Warburg
People without homes will not quarrel with their leaders. History repeats itself in regular cycles. This truth is well known among our principal men who are engaged in forming an imperialism of the world. While they are doing this, the people must be kept in a state of political antagonism.
The question of tariff reform must be urged through the organization known as the Democratic Party, and the question of protection with the reciprocity must be forced to view through the Republican Party.
By thus dividing voters, we can get them to expend their energies in fighting over questions of no importance to us, except as teachers to the common herd. Thus, by discrete actions, we can secure all that has been so generously planned and successfully accomplished.