If our government allows this it will guarantee a GREATER DEPRESSION. Whether it comes now or in a few years, it will happen. This is the precise same stupidity that led to the 1930s and it will have the exact same outcome this time.
Here’s the problem folks, in one sentence:
The banks are STILL insolvent.
They are sitting on over a trillion of dollars of this paper (about $1.1 trillion to be exact) and several hundred billion is severely impaired or even worthless. Wells Fargo, just as one example, has (as of its last 10Q) $106 billion of second lines outstanding on balance sheet, and God only knows how much in SPVs (Wells is known to have significant off-sheet exposure “inherited” from Wachovia.) Let me put this in perspective for everyone.
I believe JP is http://www.youtube.com/watch?v=GyP3whko8vc