Untoward recklessness

This slogan being put up during a protest is a natural corollary considering the inexorable problems endured by the innocuous tax payers due to the imprudent decisions made by some of the most reliable and unswervingly resilient institutions.The tax payers are the worst to suffer with diminishing job prospects and an increase in taxes.

Balance sheets maintained by banks which equal assets(investments) on one hand and liabilities(depositor's money) plus its own capital on the other started showing gargantuan inconsistencies due to the spree of defaults on a slew of investments especially those risky mortgage investments.Their plight was further exacerbated with the possibility of reduction in value of certain investments during foreclosure in which case they tried to balance the sheet with their own capital and to some extent the depositor's money.Thousands of banks including the big ones are in this situation which is called the condition of being insolvent.

Banks in such dreadful circumstances have no choice but to inveigle their depositors giving them some hope.It is followed by posturing with banks like CITI bank and Bank of America disputing claims that they are insolvent although their total value according to stock market is way below their stated capital.

Apparently the government is supporting the banks.It came up with Treasure Assets Relief Program(TRAP) proposed by treasure secretary Henry Paulson according to which the government will be buying the toxic assets crippling the banking system at significant prices incommensurate with their market prices but enough to keep them solvent.The harsh reality is that this can tend to temporary takeover by government of private banks which has the propensity of a political angle attached to it.On the contrary the government it seems is also giving money to the banks with CITI bank receiving 45 $million.Although the Obama administration is trying to lure as many private investors with incentives and guarantees to buy the toxic assets but many skeptics believe that the banking system can be saved with plummeting of loans by banks.

I still don't get some of the financial jargon related to the crisis but I certainly am wont to the general idea of it.I have nothing more to ramble this week and will end the peroration of this post complementing the discursive and beseechingly quirky character played by Steve Carrel in the mockumentary television series 'The Office'.