Ms. Whitney,Can't the prolbem with the banks be presented much more simp...

Suggestion by 75.194.97.14 on 2009-01-16 18:00:04

Ms. Whitney, Can't the prolbem with the banks be presented much more simply? If as an aggregate, the banking industry has a total of $100 trillion in loans of all types on their books and if their capital reserve requirements are 7% and as an industry they carry say, 8.5%, and if the bad loans on their books total $8.5 trillion, then doesn't the industry in aggregate essentially have no capital and thus can't make any significant loans? I don't know what the numbers are but I would bet that as an industry, the capital on their books is close to zero. Any comment would be appreciated. Thank you, rjm51a

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