After the Federal Government spent billions (a figure that may balloon to trillions) to save banking institutions, the banks are now repackaging the same toxic sludge and are selling them around the world as AAA investments. These toxic securities have no reliable pricing and banks are allowed to carry them on their books as "marked to model" meaning they are being marked as worth more than they are. This continued practice by the banks will not work to alleviate the trillions of dollars already sitting in accounts with no viable means of pricing, and will recreate an even larger problem as more and more jobless people default on their prime loans. They are trying to fix a problem with the same disease that crippled us in the first place.
Bob Rinear of InvestYourself joins us tonight to discuss what is going on in the banking industry, the causes behind it, and where we are headed economically should this continue. Join us live tonight, or catch the archive later, on BlogTalkRadio.com/PoliticalPistachio.
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