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

To: tejek who wrote (285245)	10/20/2010 7:26:59 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

They're not "lying" on that part (i.e, they ARE reserving less). However they're not reserving as much as they should be (by a factor of 10 or more) because the Feds know they are insolvent and are trying to buy time. Bankers always reserve what they are required to and (almost never) more than that. So basically the regulators (operating under Geithner's corrupt apparatus) are to blame. Had the Feds taken them into receivership, none of that game playing would have been allowed, and we'd be well on our way to a lasting solution and recovery. As it is we're looking at 10-15 years of reduced lending and zombiefied bank activity. Exactly what happened in Japan AFA the banking system is concerned. A shame, to be sure. The problem was dealt with as a bank CEO/politician (Paulson) would have it solved rather than as a bank examiner would have it solved. Entirely wrong.