Timing

I basically like this article, because it shows the hallow nature off all Bailouts; they only being as good as the belief in them. A little back-of-the-Envelope exercise will lead One to conclude that Bailouts are only as stable as are the Economies involved. This means that the wastage of Capital through the Bailouts should only slow the Recovery to insignificant degree, and We are on Schedule towards normal as soon as Bankers realize they are not making a Profit this way! One should adopt the attitude of Gamblers: No One is going to come along, and pay you back for the Bets which you lost. Go back to normal operations! Your Deal!

Housing builds at the slowest rate since 1991. Dah!! We have a backlog of Houses with Banks unwilling to extend Mortgages to purchase them. Some Economists might even consider it to be a Situation where there is an Oversupply of Housing, with Construction companies building only at minimal levels to maintain business operations. Somewhere in economic analysis you can find an absorption process entailing ‘Creative Destruction’ where bad Mortgages will have to be foreclosed, losses taken, and new Mortgages issued; the only alternative being an accelerated rate of Housing decay, which means letting the unoccupied Housing fall into ruin. The Former is preferable to the Later, but the Later is being utilized because Bankers are unwilling to accept the Former; this means that Bankers are actually part of the Problem, not the Solution.

The above is not the only Way that Banks impede the Recovery efforts. This article explains the Problem. Bankers have now lost more than they ever gained in Profits during the Boom years, something like $1.06 losses per $1 of previous Profit. Bankers are adverse to lending out the Money they obtain from the Government, out of fear that Someone will complain about the lack of Return of the estimated $0.22 per Dollar of previous Profits taken for their own personal Reward in their mismanagement during the false Boom. My Statement will be automatically contested, if Bankers are so foolish as to mention their Wealth acquisition before Stockholders. On the other hand, Bankers are intensely concerned with Appearance on current balance sheets so will not lend, and resistant to outline of the methodology of their own form of 3-Card Monte. lgl