How FU Virus Stupid is CNBC???
April 20, 2009
– Comments (4)
Today's Headline:
Growing Credit Worries May Snuff Out Stock Market Rally
Credit concerns, be they at the consumer or commercial level, continue to bedevil banks and the broader economy.
YOU GOTTA BE KIDDING ME!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
This ridiculous headline comes out today?????
For the past 12 months, unemployment has been growing, businesses have been shutting down, commercial real estate prices crashing, foreclosures rising and credit card defaults exploding.
I am talking to bankers or people that examine banks and they are wetting their pants. The past eight weeks has been incredible as debt detioration is reaching unprecedented levels. Revenues to cities and states is evaporating.
Remember, many financial institutions are leveraged to capital over 10X to one.....so if only 10% of their debts get wiped out, the institution can be insolvent.
The problem is that revenues can no longer cover debt serviice. As more and more default, expect revenues to contract further and now the deterioration is going parabolic.
Now Obama is going to cut $100 million out of the budget??? How many job losses and defaults is that going to cause???
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