[AlexdeLarge]

US banks levered cash to loans at 25:1 and liabilities at 33:1 at the credit bubble peak. The long term historic average ratios are about 5-7:1, and 7-10:1 respectively.

Moreover, historically, the ratio of real estate loans to cash averaged 1.25 to 2 (!!!) on a sustained basis, whereas the ratio at the unprecedented hyper-leveraged point in 2007-2008 reached 12-13:1, with real estate loans as a share of all bank loans reaching almost 60%. Real estate loans/GDP topped out at 26-27% (!!!).

Were the banks' cash ratio to "unreal" estate loans to return to the historically sustainable range, banks would either need to (1) triple and quadruple their cash assets from $1T to $3T-$4T and/or (2) write down real estate assets commensurately or a combination thereof.

Wells Fargo is loaded to the rafters with eventually non-performing residential and commercial real estate loans in the US Pacific Northwest the last region of the country to enter the Kuznets Cycle bust to date.

Consider what virtually no growth in real estate loans combined with a tripling or quadrupling of banks' cash assets means to the real estate market and US overall investment, consumption, government receipts, and payrolls going forward.

The negative effects of bank liquidation and reverse leverage risk outright systemic collapse.

Mish

[Voice_du_More]

Possible? Probable and likely in short order is more like it.

http://www.msnbc.msn.com/id/28809837/

I am not sure what type of fuzzy math Wall Street is employing in the stock market but when GE comes out -46% on profit, Microsoft is laying off 5000 and even the mighty Google has to burb, should the stock market be nonchalantly floating around a fixed point near 8000? Clearly it is as Jim Cramer suggested, the market is being grossly manipulated, probably by the same cats who are running the printers.

Lies, are you being told. The darkness has overtaken us. The souls of the righteous are like fatlings set up for the slaughter.

May God see and judge the wickedness of man is great, the earth cannot bear of the weight of it any longer. May He not forgive the deceit, may He no longer wait in delivering punishment for the evils have reached to the skies and still the treacherous devise more and more treachery.

A stock market above 6000 is an absolute insult to the concept of value by any definition. Sadly it is only when severe economic hardship hits America that the world will begin to wake up, and to fall deeper into its nightmares.

This is the year when America falls. I am warning you ahead of time so you will remember when it comes. I did not do this thing, I am only bearing witness, her sins are heavier than a giant stone around her neck and her deception is a delusion so deep that only a few understand what is about to happen and why.

The peoples of the earth will mourn for their lofty ambitions will all come to nothing. The Lord alone will be glorified in that day, and what a day it will be.

I have to applaud Obama for taking swift action on so many matters of ethical importance, but I am afraid that the die is cast.

[Heineken]

I have to applaud Obama for taking swift action on so many matters of ethical importance.

Oh? Like killing babies with drones?

[TWilliam]

Oh? Like killing babies with drones?

Hey, guess what? War sucks. People die. Yes, including civilians. If you don't like it, don't live in a culture that demands 47 different kinds of toothpaste, half a dozen brands of toilet paper and fresh fruits and vegetables any time of year, regardless of whether or not they're in season. Because whether people want to admit it or not, the ONLY reason our government gives a fat flying f*ck about the Middle East is because to a large extent it fuels the machine that provides all those choices.

[AlexdeLarge]

I have to applaud Obama for taking swift action on so many matters of ethical importance

Yeah.....I see what you mean.............
Obama ends abortion-related funding restrictions for aid groups

[Voice_du_More]

I have to applaud Obama for taking swift action on so many matters of ethical importance

Yeah.....I see what you mean.............
Obama ends abortion-related funding restrictions for aid groups

Well, I was being serious not passive aggressive, and I was thinking about some of the ethics reforms he has brought to the White House and the move on Guantanamo and torture. Live by the sword, die by the sword.

As for abortion I am completely against it, but I am also aware that for Christians to try to legislate morality in a world we claim is desperately flawed and unfixable is an oxymoron at best.

America is about to become the most evil empire of all time or it will be removed from world power by the crash. Either way peak oil has become the glass ceiling, we will never make 95mbpd, even 90 seems unreasonable because if there were any type of recovery oil prices would double in short order, and then we are right back where we started. You know what I mean, pretending we want a healthy future and then not doing anything about it, because what we really want is everything and we want it now.

[AlexdeLarge]

Yep. In the shiny happy land of Hopenchange, we have no need for those antiquated measures of “security” the evil Bush/Cheney forced upon us......................

[wisconsin_cur]

I think there are probably 12 threads to choose from if you want to debate the Obama presidency. Lets try to keep this one on the topic at hand please. I think the topic is very interesting and deserving of some attention.

[Voice_du_More]

Yep. In the shiny happy land of Hopenchange, we have no need for those antiquated measures of “security” the evil Bush/Cheney forced upon us......................

Those were the evils that some of us, lacking integrity and conscience embraced with open arms and will now have to deal with as the honest portions of the nation move on and the fools try to soothe their dark consciences with ever larger quantities of alcohol.

[patience]

I can't see the banks recovering from their mess. US govt is so broke, and the future of govt borrowing looks iffy enough that I can't see how they can prop up the banks for very long without throwing serious amounts of debt under the bus. Or, just print like crazy and throw out ALL the debts. That gets you a real fast collapse, too. Nope, I don't see a way out, and the clock is ticking loudly on this. I'm in full blown panic mode for preps, accordingly.

[pedalling_faster]

I have to applaud Obama for taking swift action on so many matters of ethical importance.

Oh? Like killing babies with drones?

i was going to ask Alex deLarge, what is the meaning of 'systemic' in this context ? just a clinical way of saying, double-whopper f*cked with cheese ?

but then i started clapping for Heineken, someone here has a CONSCIENCE.

wow, look at all those emoticons.

i guess in this context, systemic means, system-wide ? 80% of the banks fail ?

given that they were unable to survive without major injections of capital to pay for exec. bonuses, you could probably make an argument that 50% of the banks have already failed.

[Fishman]

Over leveraged banks, yea we're screwed.
Heinikein, as I was actually telling my son earlier today, poor obama is screwed any way you look at it. If he actually tries to protect the country the hard left attacks him. If he does not it's the end of the Democratic Party. Conscience? Boo hoo. Has anyone here ever picked up a history book? The US military is going out of its way to protect civilians, has done more for Afghanistan and Iraq than any force in history. We have ALWAYS had to step to our lower selves to fight those who would kill us all. Read Wahhabi Islam literature Heinikein

[TWilliam]

but then i started clapping for Heineken, someone here has a CONSCIENCE.

If any of us here had any degree of genuine social conscience, we wouldn't be posting here, because we wouldn't be utilizing technology that's made available largely as a result of exploitation of other people...

[idiom]

Systemic means 6 months of command economy followed by a new system, possibly slightly changed, like no fractional reserve bankings, or hugely changed like no private property or Feudal Lords.

[Mesuge]

Nope, I don't see a way out, and the clock is ticking loudly on this. I'm in full blown panic mode for preps, accordingly.

I'm sorry to be a party spoiler, but the situation has only 3major scenarios how to play itself out: 1/ lefty dictatorship 2/ rightwing dictatorship 3/ total anarchy (gradually evolving back in 1 or 2).

In all of those three scenarios, individual survival preps are basically meaningless, unless you want to buy into some more time to enjoy the show or to jump on the bandwagon and become a local/national warlord type of character..

[cephalotus]

Yeah.....I see what you mean.............
Obama ends abortion-related funding restrictions for aid groups

that's a good thing.

[WyoDutch]

[...In all of those three scenarios, individual survival preps are basically meaningless, unless you want to buy into some more time to enjoy the show or to jump on the bandwagon and become a local/national warlord type of character..

But it does beat standing in line with a bunch of former banksters and day-traders... waiting for a hunk of government cheese as soon as you show your 'Real ID'.

[Heineken]

Oh? Like killing babies with drones?

Hey, guess what? War sucks. People die. Yes, including civilians. If you don't like it, don't live in a culture that demands 47 different kinds of toothpaste, half a dozen brands of toilet paper and fresh fruits and vegetables any time of year, regardless of whether or not they're in season. Because whether people want to admit it or not, the ONLY reason our government gives a fat flying f*ck about the Middle East is because to a large extent it fuels the machine that provides all those choices.

Your response puzzles me because it's self-contradictory. Either that or it's sarcastic, in which case I have no problem with it.

[nobodypanic]

Nope, I don't see a way out, and the clock is ticking loudly on this. I'm in full blown panic mode for preps, accordingly.

I'm sorry to be a party spoiler, but the situation has only 3major scenarios how to play itself out: 1/ lefty dictatorship 2/ rightwing dictatorship 3/ total anarchy (gradually evolving back in 1 or 2).

In all of those three scenarios, individual survival preps are basically meaningless, unless you want to buy into some more time to enjoy the show or to jump on the bandwagon and become a local/national warlord type of character..

+1

[TWilliam]

Oh? Like killing babies with drones?

Hey, guess what? War sucks. People die. Yes, including civilians. If you don't like it, don't live in a culture that demands 47 different kinds of toothpaste, half a dozen brands of toilet paper and fresh fruits and vegetables any time of year, regardless of whether or not they're in season. Because whether people want to admit it or not, the ONLY reason our government gives a fat flying f*ck about the Middle East is because to a large extent it fuels the machine that provides all those choices.

Your response puzzles me because it's self-contradictory. Either that or it's sarcastic, in which case I have no problem with it.

Where do you see a contradiction, Heineken?