Legal Commentary

Soros: Banking System "Seriously Underwater"

By Ethan Brown

George Soros says
that not only are banks "seriously underwater" but, more importantly, that toxic assets are "still declining in value."

Worse, Soros argues that the recent change from mark-to-market rules--which gives banks significant judgment in gauging the prices of investments on their books--will "keep the zombie banks alive...and sap the energies of the economy."

A critical mass of highly credible voices--Krugman, Soros, etc--is emerging around the idea that the toxic asset shell game will only prolong the recession and quite possibly turn it into depression. Is anyone in the Obama administration listening?

Full post as published by TalkLeft on April 07, 2009 (boomark / email).