I wish there was another word for it, but there isn’t. Geithner is a liar. Do this:

1. Go to Yahoo Finance
2. Put in the symbol for any major bank
3. Click on the balance sheet link
4. Find the line item named Long Term Assets.
5. Reduce it by 10%, and then by 20%
6. Recalculate net worth with the lower asset value

Some banks are insolvent and others close to insolvent if 10% of long term assets have to be written off. Most are actually insolvent if 20% of long term assets have to be written off.

Realize that the whole M2M charade was to allow banks not to write off assets that would have had to be written off if the rules hadn’t changed. These assets SHOULD BE written off if there was transparency in the financial markets, but there isn’t because Lil Tim and his bosses don’t believe we can handle the truth, and who knows, maybe we can’t.

Do the calculation and you tell me if they’re well capitalized. It will take five minutes. Give it a whirl and then you will know the truth, regardless of what Timmy the Liar says. What a sucky job, lying to the American people day after day.

Anyone who thinks these phony stress tests weren’t devised by this administration as a way to say “see, we saved the banks” is naive. This has been a scam since day one.

Related Posts:

• NOW it is America’s TURN to Break up TOO-BIG-TO-FAIL!
• One year after an impressive bull market rally where I”m sure everyone has made money.
• I am old enough that I remember my grandfather’s words about his living through the Great Depression.
• The Big Banks will not let the “market” drop.
• Interesting snippet from today’s Financial Times:

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