Posts Tagged ‘banks’
Courting Debt Ceiling Disaster
During the housing bust banks held mortgage debt they thought was safe. It wasn’t. In the crunch, they got scared and froze; so did the economy. If Cong fails to lift the debt ceiling the chain of events will be similar but worse as the assets will not be Frankenstein bonds made from mortgages but…
Read MoreTOO BIG TO FAIL
Neil Barofsky, the Special IG for TARP put it well in his latest report: “perhaps TARP’s most significant legacy, the moral hazard and potentially disastrous consequences associated with the continued existence of financial institutions that are ‘too big to fail.’ While he’s right we may be on to “too big to save”. When banks get…
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