Tuesday, February 24, 2009

Not Happening

Nationalizing the banks, that is.

As follows is a snapshot of BofA's balance sheet, as pointed out by Jim Cramer today:


- $1.3 trillion in binding unfunded loan commitments
- $80 billion in letters of credit
- $1 trillion "matched" book of credit default swaps
- $1.4 trillion notional swap book
- $60 billion in liquidity commitments to conduits
- $26 billion in residential loan guarantees related to loans sold but still serviced

We can't handle the truth. If the resultant truth is that the Pres wants to nationalize the banks, we don't want or need the truth.

Obama is clearly on the hot seat tonight. It's unfortunate but his speech better be good, and/especially a departure from the doom an gloom or else stuff that he's been dealing of late. The TALF needs to get kicked in ASAP. Confidence needs to be restored. If we're paying attention, we know it's bad out there.

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