Great Depression II

How to put this politely? Have you ever been F'd in the A by a TV W? Have you ever had to sell off your assets to get F'd in the A by the W? It's something like that.

NAB will shock Wall Street

The National Australia Bank's decision to write off 90 per cent of its US conduit loans will have dramatic repercussions around the world...

NAB says that it is suffering a 55 per cent loss on American housing loans – an event that has never happened in the history of a developed country in recent memory. This is an unprecedented event and means that the cost of bailing out the US financial system is now far beyond the highest estimates. A US recession is now locked in, but more alarmingly, 55 per cent loan losses point to the possibility of a depression...

US banks have written down $450 billion in bad housing loans. The revelation from NAB means that they will now certainly need to take provisions to $1,000 billion. But write-downs of $1,300 billion and perhaps even more are on the cards.

Where will the equity come from to cover these bad loans? The world has never attempted a rescue effort of this size and it will make liquidity in the globe very tight. That’s why corporates will be hit. All Australian companies that need equity should raise it now.

I've got a quick fix. Abolish money.

Or get ready to ride the trains from state to state looking for work.