Interesting sidelight on bank failures

Denninger was referred to me as someone who knows what he is talking about. Unfortunately this is a field where I have virtually no expertise beyond the fairly elementary. Of course, some things are fairly elementary, and if he is correct then the fairly elementary rule that you don't count unhatched chickens was violated, in order to sell worthless financial instruments.

There seems to be an unspoken agreement not to talk about certain things like how much overpriced holdings banks are relying on. I understand some of the reasons why--a panic would make things even more worthless than before. But it certainly looks like the powers-that-be want to just keep doing whatever they did before.

This isn't to say that I'd trust Obama to come up with any sensible economic proposals, except by accident; and I fear what the Congress and Senate would do: "Gospel in, Garbage out."