Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: bentway who wrote (259920)	7/10/2010 9:19:07 PM
From: ChanceIs	Read Replies (1) \| Respond to of 306849

Of course if all the banks had collapsed at once we would have been in a heap of hurt. No question. I have it from several different sources that Lehman was cleaned up rather quickly. I can tell you Chris Whalen, Roubini and a host of others were all calling the top in the real estate bubble back in '05. I would go to lectures, and all those guys were saying things like...'Citi is toast'...'Fannie and Freddie are insolvent,' etc. When Lehman was imploding the mantra among the cognoscenti was...'this is not a liquidity crisis, it is a solvency crisis.' If you pressed Whalen, he would probably admit that things on the liquidity front were dicey for about 48 hours. Little has been resolved. The government in its infinite foolishness has spread the bad loans across the countryside via the FED. I understand that during the S&L crisis, the mantra was: 'A rolling loan gathers no loss.' In '07, it had become: 'Extend and pretend.' We have officially moved into: 'Delay and pray.'