|
Political Factoid
Many of the largest banks in 2016
... were technically insolvent.
- They were not required to "admit"
this simple fact,
thanks to an accounting rule change.*
- They carried an enormous amount
of bad loans on their books.
- They sat on millions of bank-owned foreclosures
for which there is essentially no market.
- This backyard inventory amounted
to years worth of house sales.
- For a long time this excess supply
would have a depressing effect on
prices.
* Championed by guess who!
|
|
-30-
|
