Banks are bust. They are running now on smoke and mirrors and some fumes tossed at them as low interest loans from the feds.

The model that propelled them into being mega public corporations was bogus. The ponzi scheme worked in the beginning. But as everyone knows ponzi schemes all go bust when the suckers have all been bled dry and there are no more to bleed.

The banking industry and the financial industry is nothing more than ponzi schemes with fancy names.

Why won’t people face the fact that the whole thing needs to be torn apart and built anew?

Right now Paulson is shoveling money at them and they are sucking it up and fiddling away as Rome burns. Not an ounce of contrition – just fire thousands of grunts… Oh and no more color copies.

What does this tell us? It tells us that most investors in the market have short time horizons, so planning ahead is often unprofitable for CEO’s. Take the money and run is safer. Of course, it’s musical chairs. You never know when some of the chairs are going to be taken off the floor.

The problem is deeper than Rubin and the CEO’s. It goes to the ease of speculating in the market. Jim Tobin once suggested that international money transfers be subject to a small tax to put sand in the wheels in order to dampen speculative movements. It may be that something similar is required in the equity markets. Investors will howl like hell, but the medicine will be good for them.

- the people all around the world who bought the crap.

“I could take a dump in a box and mark it garunteed…”
- Tommy Boy

Citigroup’s risk models never accounted for the possibility of a national housing downturn, this person said, and the prospect that millions of homeowners could default on their mortgages. Such a downturn did come, of course, with disastrous consequences for Citigroup and its rivals on Wall Street.

They tweaked their models to get the result they wanted. But since they were ussing funny models I wonder who was suppose to be fooled by this the bond rating agencies? government regulators? the cable and print business media?

Those trillions gone result in famine, pestilance, disease, death.

I figured this out when I went to buy my first house 47 miles from my job. It was so way overpriced that taking my parents mortage and the multipler to my mortgage – and applying it to what my kids would have to pay… it came out to something like my kids would need to pay 5 million plus per YEAR for a house.

Pu-leaze