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20 slides with comments on zombie banks

20 slides with comments on zombie banks

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  • 1. Return of the Zombie Banks
  • 2. They're too big to FAIL
  • 3. What is a "Zombie Bank?" Term comes from Japan's lost decade (1990's) banks were kept "alive" after their real estate bubble collapsed. A zombie bank is a term for a financial institution whose liabilities (debt) outweights it assets = has a net worth less than zero....
  • 4. In other words - they are broke!!!!
  • 5. Life Support They can be kept artifically alive by: A) Eating out of the taxpayers wallets, see "bailouts". B) Government guarantees. C) All of the above!
  • 6. TWO OF THE BIGGEST US ZOMBIE BANKS:
  • 7. CITIGROUP
  • 8. How much is too much? $$$ EACH of these two banks received 45 B in bailout monies: $45,000,000,000.00!
  • 9. Our government is guaranteeing up to 90% of these zombie bank's bad debt
  • 10. Zombie Bank of America $306 B in bad debt
  • 11. Zombie Citigroup $250 B in bad debt
  • 12. That is more than either of these banks are worth!!!
  • 13. Why should YOU care?
  • 14. A portion of the money you earn is going to fund these failed institutions.
  • 15. Institutions that will in turn be very reluctant to lend you money as a newcomer to credit...
  • 16. ...even though they used your $$$ to help prop them up?
  • 17. What do You think should be done to zombie banks? A) Knock them in the head... let them fail!
  • 18. B) Continue to feed off taxpayers.
  • 19. C) You really do not care - it doesn't matter to you.