During an ABC interview on Sunday, September 14, 2008, Greenspan said more Banks will fail. Since the credit crises started, The Federal Reserve through its discount window has lent brokerage houses and banks over 173.5 billion dollars to stay in business. This cash has been classified as liquidity, capital, reserves and profit in order to shore up balance sheets by various institutions.
Lehman Brothers and Washington Mutual will fail this week but the High ranking investment bankers will not take any pay cuts and will still collect billions in Bonuses. You loose but they win. Hopefully, no other investment banks will get welfare bailouts just so the executives can take the money and run.
The King saw this coming to past and forecast the whole Wall Street crash in April 2008 as evidenced by my older post. The good news is that as wall street sinks, the local economies of main street are holding on.
1 comment:
Prince Blake
King G. You have been right on for so long. When are you going to do a seminar?
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