Financials need at least $1-1.2 trillion

Financials need at least $1-1.2 trillion

(Reuters) – The U.S. financial system still needs at least $1 trillion to $1.2 trillion of tangible common equity to restore confidence and improve liquidity in the credit markets, Friedman Billings Ramsey analyst Paul Miller said.

“Debt or TARP capital is not true capital. Long-term debt financing is not the solution.”

Even if nothing else is learned from this mess and the long, hard correction coming, I pray that the whole Orwellian concept of “debt is wealth” will be debunked once and for all. An eventual return to fiscal sanity. That would be good.

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