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Banks 'worse than before crisis'

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posted on Sep, 14 2009 @ 09:51 AM

“In the U.S. and many other countries, the too-big-to-fail banks have become even bigger,” Stiglitz said in an interview today in Paris. “The problems are worse than they were in 2007 before the crisis.”

A year after the demise of Lehman forced the Treasury Department to spend billions to shore up the financial system, Bank of America Corp.’s assets have grown and Citigroup Inc. remains intact. In the U.K., Lloyds Banking Group Plc, 43 percent owned by the government, has taken over the activities of HBOS Plc, and in France BNP Paribas SA now owns the Belgian and Luxembourg banking assets of insurer Fortis.

While Obama wants to name some banks as “systemically important” and subject them to stricter oversight, his plan wouldn’t force them to shrink or simplify their structure.

“We’re going into an extended period of weak economy, of economic malaise,” Stiglitz said. The U.S. will “grow but not enough to offset the increase in the population,” he said, adding that “if workers do not have income, it’s very hard to see how the U.S. will generate the demand that the world economy needs.”

The Federal Reserve faces a “quandary” in ending its monetary stimulus programs because doing so may drive up the cost of borrowing for the U.S. government, he said.

“The question then is who is going to finance the U.S. government,” Stiglitz said.

The situation now is worse since the bailout, scary thought.
No one will lend the government money, so who will be the sucker now?

Interesting times we live in.

posted on Sep, 14 2009 @ 11:14 AM
Sense left the building about a year ago. The TARP money was supposed to "save" the banking sector, who's poor health was said to be "days away" from toppling the entire economy... Hmm, $800 Bil and a year later, they're in worse shape and the system hasn't collapsed. The foreclosures were stated as the primary reason for the disaster... the foreclosures keep mounting, and seemingly aren't having an impact as they've basically stopped scare mongering over them. Obama committed identity theft, writing a $780 Bil IOU using the US taxpayers' name under the guise of "if we don't do this, unemployment will to 10%, this stimulus will pare it at 8-8.5" that has been proven to be a bullflop, as we're almost to 10 with Obama's theft.

So, the question of the day becomes this. What cockamamie excuse will this government use to steal our money this time?

posted on Sep, 14 2009 @ 01:46 PM
I lost track after Bush's first 800 Billion IOU.

posted on Sep, 15 2009 @ 02:05 AM

Originally posted by brocket99
I lost track after Bush's first 800 Billion IOU.

That's quite the good deal! The good old days for sure.

Current Federal Debt is $11.8 Trillion, or $11,800 Billion.

[edit on 15-9-2009 by Dbriefed]

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