America’s Japanese banks

08-17-2009 • Reuters

A banking system loaded down with hundreds of billions of dollars worth of unrecognized bad debt — Japan in the 1990s? No, it’s the United States today.

And where are American banks hiding their losses? Among other places, in their loan portfolios.

2 Comments in Response to America’s Japanese banks

Comment by PureTrust

Entered on: 8/17/2009 9:54:55 PM

Whenever a legal lending institution - bank, savings and loan, credit union, etc. - loans money, they don't really loan money, even though they say that they do. What they really do is create new money. They can call it a loan because they have been allowed by law to lie this way.

Since they don't really loan money, but rather lied to you when they said that they did, you don't owe it back to them... because you never borrowed it in the first place! It was all NEWLY CREATED MONEY that they gave you!

Want proof? Google and read 2 Federal Reserve Bank publications:
Modern Money Mechanics
Two Faces of Debt

Comment by Lucky Red

Entered on: 8/17/2009 2:59:50 PM

If they don't hide the bad debt, how else could they affod to claim recovery and give themselves gazillions of dollars in bonuses? This one is a der!

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