Pithaly

[Elaine: I amended this chart to show important banking moments. This is amazing. It shows clearly that our banking system is insolvent. This graph should be posted on all front pages, it is more important than peccadillos of our ruling elites running after expensive whores. This is them running after Miz Risky, the biggest Whore of them all.]

UBS puts the banks total losses from the subprime fiasco at $600 billion. If that's true, (and we expect it is) then the Fed is out of luck because, at some point, Bernanke will have to throw in the towel and let some of the bigger banks fail. And when that happens, the stock market will start lurching downward in 400 and 500 point increments. But what else can be done? Solvency can only be feigned for so long. Eventually, losses have to be accounted for and businesses have to fail. It's that simple.

Roubini has been right from the very beginning, and he is right again now.

http://elainemeinelsupkis.typepad.com/ezmoneymatters/2008/03/roubinis-nightm.html

http://benbittrolff.blogspot.com/2008/03/really-scary-fed-charts-march.html Read more on this article...