Friday, August 15, 2008


So, you may have noticed that I've been ruminating on the state of our financial markets lately. My basic view was pretty well echoed in this piece from James Quinn, senior director of strategic planning at Wharton. The essential quote is the last paragraph:

The U.S. banking system is essentially insolvent. The Treasury, Federal Reserve, FASB, and Congress are colluding to keep the American public in the dark for as long as possible. They are trying to buy time and prop up these banks so they can convince enough fools to give them more capital. They will continue to write off debt for many quarters to come. We could have a zombie banking system for a decade.

I am of the opinion, which Quinn echoes above, that we are walking a very fine line on very thin ice running a massive Ponzi scheme of deception and capital raising, hoping the government and the press can talk their way into the bottom of the market. Alas, I don't see this happening. And remember - when someone can't pay back their loan, it's not the lender's fault - it's the borrower's!
For reading through my bearish financial ramblings, I reward the reader with this "if-that's-not-crossing-the-line-it's-awfully-close" ad from Guiness, which supposedly Guiness denies making:


1 comment:

APOSEC72 said...

Best beer commercial ever.