Dr. Doom: ‘The U.S. Banking System Is Effectively Insolvent’


Can't economist Nouriel Roubini, a.k.a. Dr. Doom, a.k.a. the Vagina-Walled Writer of Insane E-mails, let us be happy for one second? Here he is today at a conference in Dubai: “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. 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.” Thanks, Negative Nancy. We almost forgot for a second. But oh, look, the markets have tumbled, too. [Bloomberg, NYT]