Elizabeth Warren: "We Have A Real Problem Coming..."

  • The banks are still insolvent. 
  • That little tweak to mark-to-market accounting a couple of months ago has allowed us all to plunge into deep denial. 
  • Now that the banks are allowed to lie about what their toxic assets are worth, they’ll never sell them (because if they did they would have to write them down).
  • The smaller banks are undercapitalized and will have to raise another $12-$14 billion.  And so on… 

Those are the basic messages from Elizabeth Warren, head of the Congressional Oversight Panel.  Warren’s 10 minutes on Morning Joe (via Zero Hedge) are worth watching.


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