Poway, thanks for digging this up, as it is another nugget I didn’t know about at all. I suppose, one would have to be intimately familiar with the banks’ practices to paint a full picture of what is going on in their balance sheets. All these little things together might absolutely be capable of putting the nail in some of the banks’ coffins. I heard another thing on an older Jim Puplava show, that I don’t know if it has been discussed before. Despite selling off their mortgages as packaged instruments on wall-street, the guest claimed that banks end up buying these back as a way of investing their reserves. According to him 60% of some banks’ reserves are sitting in these mortgage backed securities. As discussed on another thread, these MBS could be in some mid-range of risk, e.g. A or AA, but that hardly makes them bullet proof. The guest also claimed that the worse slices were still held by the banks, since they couldn’t be sold off so easily.
