Anyone here bought/invested on the bank/financial institutions stocks? I bet it\'s very hard time.
Financial crisis since 2008 was bad. Some people said the worst time\'s over. Thinak again!
In this crisis, $1.6 trillion in asset dispositions that have already been announced by 13 financial institutions, including AIG, Fortis Bank, Royal Bank of Scotland and Lehman Brothers! But $1.6 trillion is far from enough!
In the next five years, financial institutions will need to offload $10 trillion in assets! we\'re going to see more financial asset liquidation than we\'ve seen over the past 100 years.
Why in the next 5 years? random number? Definitely not! The liquidation processes is complicated, you cannot shut down 5,000 institutions in one month. Usually it take at least 3 years to 5 years for those assets to unwind.
Now 8,000 U.S.commercial banks, less than 200 are adequately capitalized. Every single major financial institution in the U.S. is undercapitalized at some level.
Get ready for the great liquidation. Worse than the worst is about to come.