Crashola #10:

[jrittenhouse]

• Two big Philadelphia newspapers file for Chaper 11 bankruptcy.
• Delco retirees are suing the company to stop the company from yanking their benefits in bankruptcy court.
• Rupert Murdoch’s News Corp is taking a huge $8.4B loss; worse that expected.
• The town I live in, population 20,000, budgeted $85,000 for salt and overtime for clearing streets of

Comments

[shelleybear]

Arguably, the only reason they haven’t already failed is that the government is acting as a backstop, implicitly guaranteeing their obligations. But they’re zombie banks, unable to supply the credit the economy needs.

To end their zombiehood the banks need more capital. But they can’t raise more capital from private investors. So the government has to supply the necessary funds.

braaaaainz

Baaaailouuuut!

[wcg]

In addition to the four reasons you listed, there's also the reluctance on the part of the government to assume all the obligations of the banks. The administration seems to be trying very hard to find some path that provides the strength that would come with nationalization without relieving the bank corporations of their public obligations.

[unclejimbo]

Newscorp losing $8.4 billion?

Couldn't happen to a nicer bunch of people.

[jrittenhouse]

Preach, brutha.

[sourceoftrouble]

On the news tonight they spoke of the 20 largest banks. Any idea which ones those are?

[jrittenhouse]

Not off the top of my head.