Yeah, Let's Just Let the Market Fix Itself

You have to wonder what the free-market-theologians in the party of Hoover are thinking:

Jan. 20 (Bloomberg) -- U.S. financial losses from the credit crisis may reach $3.6 trillion, suggesting the banking system is “effectively insolvent,” said New York University Professor Nouriel Roubini, who predicted last year’s economic crisis.

“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.”

Things could get a hell of a lot worse. I suspect that if the Hooverites manage to obstruct things so that the economic stimulus package winds up playing "small ball," it will.