Update
So just a couple of days after my last Haiku post,things are looking considerably more grim.
The Dow took what looks to be a serious reversal lead by the supposedly "recovered" financial stocks. The day before on a Sunday, word came out of another large financial bankruptcy.
In its Chapter 11 bankruptcy filing yesterday, the commercial-property lender, Capmark Financial based in Horsham, PA listed assets of $20.1 billion and debts of $21 billion.Capmark was the new name for the commercial real estate arm of what was once GMAC and played a big role in commercial real estate lending.
Moreover, Capmark owns a large FDIC insured bank Capmark Bank, the wholly-owned Utah industrial bank subsidiary of Capmark Financial Group Inc., agreed to a cease and desist order with each of the Federal Deposit Insurance Corp. (FDIC) and the Utah Department of Financial Institutions. The orders require Capmark Bank to maintain a Tier 1 leverage ratio of at least 8% and a Total Risk-Based Capital ratio of at least 10%.
Anyway, it's pretty obvious that when Sheila Bair made her more than slightly deceptive statements she knew a line of zombie banks are in Capmarks condition.
I leave you with the latest Peter Schiff video. No joke, they tried to sell him on a adjustable rate mortgage!
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