Comments on: CIT-go into Bankruptcy? http://www.senseoncents.com/2009/07/cit-go-into-bankruptcy/ Navigating the Economic Landscape Fri, 12 Mar 2010 14:44:34 -0500 http://wordpress.org/?v=2.9.2 hourly 1 By: Larry Doyle http://www.senseoncents.com/2009/07/cit-go-into-bankruptcy/comment-page-1/#comment-3523 Larry Doyle Wed, 22 Jul 2009 11:17:45 +0000 http://www.senseoncents.com/?p=7997#comment-3523 kbdabear....the fact is the toxic assets remain embedded on and off the balance sheets of these banks. The underlying loans backing those assets continue to default at an increasing rate. What is going on here is nothing short of a race between 'quarterly earnings' generated by the banks versus writedowns or actual losses (via default) on these assets. I wrote about this very topic in <a href="http://www.senseoncents.com/2009/07/how-will-banks-manage-earnings/" rel="nofollow">"How Will Banks 'Manage' Earnings"</a> There is no plan that I know of other than the ongoing snail's pace of the TALF and PPIP. I do not think there is an enormous surprise. I think it will merely be an economy operating with a severe case of 'walking pneumonia.' What fun... kbdabear….the fact is the toxic assets remain embedded on and off the balance sheets of these banks. The underlying loans backing those assets continue to default at an increasing rate.

What is going on here is nothing short of a race between ‘quarterly earnings’ generated by the banks versus writedowns or actual losses (via default) on these assets.

I wrote about this very topic in “How Will Banks ‘Manage’ Earnings”

There is no plan that I know of other than the ongoing snail’s pace of the TALF and PPIP.

I do not think there is an enormous surprise. I think it will merely be an economy operating with a severe case of ‘walking pneumonia.’

What fun…

]]> By: kbdabear http://www.senseoncents.com/2009/07/cit-go-into-bankruptcy/comment-page-1/#comment-3509 kbdabear Tue, 21 Jul 2009 23:08:12 +0000 http://www.senseoncents.com/?p=7997#comment-3509 A few questions if I may; What is being hidden from us regarding the TRUE state of the big banks balance sheets? We're being told by the Fed, the government, and the MSM that the banks are stabilizing and some are even returning to profitability Is there a plan for the government to take toxics off the hand and bury them into an off-budget black hole? Is there another huge nasty surprise coming like the one last September? How will they claim that they didn't see it coming and they're "SHOCKED"? A few questions if I may;

What is being hidden from us regarding the TRUE state of the big banks balance sheets? We’re being told by the Fed, the government, and the MSM that the banks are stabilizing and some are even returning to profitability

Is there a plan for the government to take toxics off the hand and bury them into an off-budget black hole?

Is there another huge nasty surprise coming like the one last September? How will they claim that they didn’t see it coming and they’re “SHOCKED”?

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