crash08 COMMERCIAL TO BOTTOM OUT IN 2010 latimes 11-07-09

from patrick.net
This is a bookmark to the "extend and pretend" article I sent last week. The LAT's take is that banks will finally 'fess up, foreclose on and mark down the value of "severely underwater" (as in, Mariana Trench underwater) commercial loans and mortgages in their portfolios.
I disagree. Banks, being comprised of humans, will continue to delude themselves and wait for some "corner" to be turned, allowing them to recoup some of their losses, after taking less-egregious-than-now write-offs. It's a lovely fantasy, and unless they get pressure from the federal government - unlikely, as even the gal whose job it is to make the banks behave, Sheila Baird, head of the FDIC, has been told to shut up - or shareholders (a joke), they are unlikely to do much of anything they don't have to until the firing squad (FDIC) is adjusting its bandoleers. I believe the earlier scenario is more likely, but, a stay of execution still means you're going to die.

Nigel Watson  freethinker  727.493.1990 freesense@Gmail.com

"It is no measure of health to be well adjusted to a profoundly sick society." – Krishnamurti
-A good pun is its own reword.

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