Originally Posted by Nightfyre
You do realize that the vast majority of corporations are reliant on significant quantities of borrowings which would not be available via said financials if these toxic assets were still out and about. This is the average american shouldering the shitty assets because these financial firms hold the American economy hostage by being too big to fail and leveraging out of their minds to maximize profits. The biggest financial firms in the world have inadequate capital levels and they have basically been given permission to maintain the status quo by a group of people who are free of oversight.
I don't dispute that the financials are TBTF and they are a problem. I advocated a Swiss approach to the bail outs instead of what we did.
That being said, the financials have recapitalized as well as most of the private sector. Balance sheets are in the best position they've been in for a long time. Leverage is also considerably lower than prior to the crisis.