Finally - Someone On Wall Street Who Understands The Banking Reality

In our post from ten days or so ago on why Geithner's bank plan will fail, we effectively wrote that the unwinding wasn't finished. That new bad assets continued to pile up on bank balance sheets. Although we did so using a more rigorous argument than a single sentence. On Friday a Goldman analyst acknowledged reality. And, although his remarks were central to the mark-to-market accounting shenanigans, they are also applicable to why the Treasury's public-private partnership will fail. The recursive unwinding we have written about for a few years now still remains the primary economic trend.