zombie banks

Return of the Zombie Banks

They're too big to FAIL

What is a "Zombie Bank?"

Term comes from Japan's lost decade (1990's) banks were kept "alive" after their real estate bubble collapsed. A zombie bank is a term for a financial institution whose liabilities (debt) outweights it assets = has a net worth less than zero....

In other words - they are broke!!!!

Life Support

They can be kept artifically alive by: A) Eating out of the taxpayers wallets, see "bailouts".B) Government guarantees.C) All of the above!

TWO OF THE BIGGEST

US ZOMBIE BANKS:

CITIGROUP

How much is too much? $$$

EACH of these two banks received 45 B in bailout monies:

$45,000,000,000.00!

Our government is guaranteeing up to 90% of

these zombie bank's bad debt

Zombie Bank of America

$306 B in bad debt

Zombie Citigroup

$250 B in bad debt

That is more than either of these banks are worth!!!

Why should YOU care?

A portion of the money you earn is going to fund these

failed institutions.

Institutions that will in turn be very reluctant to lend you money as a newcomer to credit...

...even though they used your $$$ to help prop them up?

What do You think should be done to zombie banks?

A) Knock them in the head... let them fail!

B) Continue to feed off taxpayers.

C) You really do not care - it doesn't matter to you.