Elizabeth Warren, head of the Congressional Oversight Panel, which yesterday released quite a sobering report on the true state of the banking industry, explains what is really going on with the increasingly irrelevant balance sheets of the bailout banks (all of them).
Once again underscores what a farce the stress test was, the complicity of the accountants in making the transparency initiative a sham, and why the banks are still as underwater as they ever were.
- 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, click here.
