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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (363018)	12/16/2007 1:23:07 PM
From: tejek	Respond to of 1596028

The article was talking about the banks but I think you mean the gov't. They are really just parts of the whole. When the money was wasted, it was wasted out of the whole economy. That's true.....national debt was taken in its place. That weakens the American economy to some degree and is one of the primary culprits for the dollar being so weak but I don't think it directly impacts the banks and their solvency. In fact, everything I read suggests the banks currently are in the strongest position financially that they've been in some years. Even WAMU, the bank probably hurt the worst by subprime, has enough profit to provide a small dividend this quarter. The gov't on the other hand is a mess. Its bad behavior under Bush is a major reason why so much liquidity has been taken out of the system to finance the national debt. Having said all that, the financial system is made up of so many moving parts, its hard for me to see clearly how all the parts effect each other. But I still think its a mistake accusing the banks of insolvency. FWIW.