The Elephant's Out
Here is a New York Times' article that states that major banks are insolvent. It is time to start thinking about the Resolution Trust Corporation-like entity that will help clean up this mess. The sooner this happens the faster the remaining banks can start lending again. I still believe that Treasury's realization that some of the biggest banks are insolvent lead to Geithner's much panned bank bailout speech on Tuesday. More insolvent talk is going to make the eventuality easier, and the market reaction more muted. Time is not on Geithner's side. Republican recalcitrance on the stimulus package is only going to grow stronger if his nebulous plan requires additional billions.