{"id":193097,"date":"2009-01-20T20:59:00","date_gmt":"2009-01-21T01:59:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2009\/01\/20\/effectively-insolvent\/"},"modified":"2009-01-20T20:59:00","modified_gmt":"2009-01-21T01:59:00","slug":"effectively-insolvent","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2009\/01\/20\/effectively-insolvent\/","title":{"rendered":"Effectively Insolvent"},"content":{"rendered":"<p>That is what <a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=20601087&amp;sid=aS0yBnMR3USk&amp;refer=home\">Nouriel Roubini is saying about the whole US banking system<\/a>:<\/p>\n<blockquote style=\"color: rgb(0, 0, 153);\"><p>\u201cI\u2019ve 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,\u201d Roubini said at a conference in Dubai today. \u201cIf that\u2019s 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.\u201d <\/p><\/blockquote>\n<p>Note that he has the training to calculate this stuff, all I have is my gut.<\/p>\n<p>My gut says that his prediction is optimistic, and as bearish as he has been, he has actually underestimated the scope of this problem by a bit so far.<\/p>\n<p>By way of perspective, the US economy in 2007 was about $13-\u00be trillion.  This is a big number, though less than the roughly 8-&frac12; trillion that the Treasury and the Fed have &#8220;lent&#8221; out in the past year or so.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>That is what Nouriel Roubini is saying about the whole US banking system: \u201cI\u2019ve 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,\u201d Roubini said at a conference in Dubai today. \u201cIf that\u2019s true, it means the U.S. banking system is &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[973,1004],"tags":[],"class_list":["post-193097","post","type-post","status-publish","format-standard","hentry","category-economy","category-finance"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/193097"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=193097"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/193097\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=193097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=193097"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=193097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}