Wednesday, 21 January 2009

Roubini: "US and Europe Banking System is Bankrupt"

"“I’ve found that credit losses could peak at a level of $3.6 trillion for U.S. institutions, half of them by banks and broker dealers,” Roubini said at a conference in Dubai today. “If that’s true, it means the U.S. banking system is effectively insolvent because it starts with a capital of $1.4 trillion. This is a systemic banking crisis.”

“The problems of Citi, Bank of America and others suggest the system is bankrupt,” Roubini said. “In Europe, it’s the same thing.”"

No wonder why the ECB, Nordea etc... are trying to give positive messages through media as time is running out, any delay of the banking system collapse(?) is needed to prepare for its recovery.

"Yes we can", can have what? a banking collapse?

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