The nation's largest banks are carrying half a trillion dollars in bad debt. First Bad Bank to the rescue.
Congress and banking have never been good working partners. Alexander Hamilton conceived the First Bank of the United States to handle the colossal government debt created by the Revolutionary War. Congress drafted and George Washington signed the bank’s charter in 1791. Twenty years later, Congress voted to abandon both the charter and the bank. Today, the government faces another colossal debt that is being created by the US banking system itself because the system is becoming insolvent. Saving the system may well require Congress to nationalize it. They may draft a charter for Barack Obama to sign creating the First Bad Bank of the United States.…
Article comments
26 - Roger Nowosielski
I was working on Wall Street in the sixties, Tom. We had a slight recession then (in 1967) and the devaluation of the pound from over 4 per dollar to 2.6 or something - for which some traders got the ax.
If I remember correctly, the Dow back then was slightly over 2000, and it hadn't changed much over the years. So when it started rising above 7000 to no end, I knew it wasn't for real.
The dollar was strong, too. Real purchasing power.
27 - Tommy Mack
By the way, thanks for the correction, Doc. I did.
Also in correctness, 1989 May 19, DJIA passed the 2500 [mark for the first time]
One has to admit that 5000 points in 11 months is a heck of a correction.
Tommy
28 - STM
Doc: "Whatever it is Dave's been chugging this weekend, perhaps he can let me know where I can get my hands on a bottle of it".
Or smoking ...
29 - STM
How much is a squillion then?
30 - Dr Dreadful
It's 1 followed by enough zeroes to make you squint.
31 - Roger Nowosielski
That's why exponentials are heaven-sent. It's all in the notation.