The U.S. banking system is effectively insolvent

January 20, 2009
Bloomberg, January 20, 2009

Nouriel Roubini, nicknamed Dr. Doom for his gloomy economic predicts has stated that he believes the Unites States is insolvent.

“I’ve found that credit losses could peak at a level of $3.6 trillion for U.S. institutions, half of them by banks and broker dealers,”

Roubini said at a conference in Dubai .

“If that’s true, it means the U.S. banking system is effectively insolvent because it starts with a capital of $1.4 trillion. This is a systemic banking crisis.”

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