Wednesday, May 28, 2008

Oh. My. Fraking. God!

This was on MPS.

(Click to enlarge)

This chart says that the banks of this nation have no cash reserves. None. Zero. They have loaned out everything they have and tens of billions more than that.

Tengrain asks a good question: Does this mean that the banks are all insolvent?
on or about

2 comments:

  1. BadTux5/29/2008 1:38 PM

    No. It means that the Federal Reserve is printing money and "washing" it through the banks to get it out on the streets. It means that we can expect the value of the dollar to continue its fall and everything under the sun to get horrifically expensive because the Federal Reserve is intent on replicating the "success" of the Weimar Republic finance ministry. That's what it means.

    But it doesn't mean the banking system is bankrupt. That cannot happen as long as the Federal Reserve has the power to print dollars anytime they feel like it -- which they do have.

    - Badtux the Finance Penguin

    ReplyDelete
  2. Earl5/30/2008 12:50 AM

    I have to agree, the US government is printing way too much money, and the price of everything goes up as the VALUE of the dollar falls. But you didn't get that at Treasury or the Whitehouse and Congress is playing mum, too. Seems I remember a Germanic Nation that did that to the extreme, and had to start all over again. Papiermark I think they were called.

    Nice avatar, Badtux

    ReplyDelete

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