IMF calls for system 'reboot' or all bailouts will be wasted
 

http://www.independent.co.uk/news/uk...e-1519067.html

"The IMF says tax cuts and public spending and borrowing boosts all over the world will be useless unless the financial system is rebooted.

Its managing director, Dominique Strauss-Kahn, warned: "If there's not a restructuring of the banking system, all the money you can put into [monetary and fiscal] stimulus will just go into a black hole.""

Thats it. All bailout money are wasted, unless politics stop to support capital sucking blackholes (aka 90% of banks) and let them bankrupt. There is not enough money to cover all their loses (it only started with housing, watch for much more and bigger problems like CDS).
The current system cant be saved, it have to be rebuilded again.

i agree - and it won't happen - nobody is prepared to pay the price or bear the sacrifices that would correct the economy. so we'll continue on and let future generations really feel the real pain - by that time the world economy will be a lot less tied to the American economy and Americans of the future will never know the wealth and comforts enjoyed their parents and grandparents.

I don't think this "decoupling" will happen nearly as quick as many (e.g. Peter Schiff) speculate.

If I read that right are they calling for a "reboot" as in EVERYONE goes back to 0?

IE no one owes any debts, etc etc?

Tht would be heaven for sure, god knows I made a shitload of bad choices in my youth that made it so I could never get approved for credit and such, but given the chance to do it all over I know better now.

if that's the case, agreed that it would NEVER happen lol

-Loki-

and just another article, confirming the IMF view, from Roubini:

Roubini Says U.S. Banks Insolvent, Will Have to be Nationalized

This is it. all those bailouts are:
http://www.bloomberg.com/avp/avp.htm...rwm8k_ARvE.asf

money into the blackhole, since banks are going to be insolvent anyway.
on the other side, the nationalization isnt great way too, just one look to the Iceland says more then enough...

the default is the only way.

Banks are going down the hole because of the way they have been run. NOTHING will fix the economy not even a " REBOOT " without changing the way banks run.

there is no amount of money that will be able to save the banks.

there is going to have be major debt forgiveness and write offs, although if it is only on the bank side and not for the public, the world will become iceland with toppled governments and daily protests.