It's Time to Face the Facts (Part 1)

For anyone who believes any positive earnings reports from the banks, you probably also believe there will be a real recovery in the economy.

These “earnings” are even less credible than those reported by the banks during the height of their Ponzi scheme in 2007.

Earnings? From the banks? It’s laughable.

Let me now state what I consider to be facts related to the bigger picture of this economic fiasco.

Fact #1. All Major Banks Are Insolvent.

This has been true now for over a year. It remains true despite the Treasury and Fed already having pumped in over $13 trillion in the form of loans or guarantees into the financial system; just over the past twelve months alone. But this is still insufficient. Several trillions more will be needed, and much of this will be lost forever.