T Nation

Telegraph.uk: 'Our Banks Are Insolvent'

Call to relax Basel banking rules
By Edmund Conway, Economics Editor
Last Updated: 1:13am GMT 16/12/2007

“The Government must suspend a set of key banking regulations at the heart of the current financial crisis or risk seeing the economy spiral towards a future that could “make 1929 look like a walk in the park”, one of Britain’s leading economists has warned.”

According to conservative rules, where they must keep reserves at a ‘whopping’ 8% of deposits, these banks are insolvent unless the reserve requirements are cut. What happens when they can’t cut anymore? What happens when huge investors around the world perceive more risk to their money?

We are on the verge of a meltdown of titanic proportions.
Buy gold and lots of ammo, gents.

Can the invisible hand fix this? He’s been pretty reliable in the past…

“What we are witnessing is essentially the breakdown of our modern-day banking system, a complex of leveraged lending so hard to understand that Federal Reserve chairman Ben Bernanke required a face-to-face refresher course from hedge fund managers in mid-August.”
— Bill Gross, founder and chief investment officer of Pimco


We are all royally fucked and most here don’t know or don’t care.

“The Fed will work it out. The Big Money Boys will figure SOMETHING out.” Yeah…