The New Submerging Markets

Banks should be required to mark to market and those that are insolvent should be nationalized and put out of their misery.

It is not too late. Perhaps it would have been unwise one year ago, but today the financial markets have stabilized and will be better able to handle the truth concerning the insolvency of certain banks.

As long as we play this game of balance sheet fiction, we will continue to misallocate capital and generate (literally) false profits by some banks while other banks operate in zombie mode. All the while allowing these institutions to continue the practice of excessive salaries and unconscionable bonuses.

Under the present scenario, the working class is decimated, the middle class is impoverished and the nation's economy as a whole continues to slip to second rate status.

Yet we continue to allow investment banking liberals and corporate management conservatives to game the system and self-justify, rationalize their indulgent and destructive practices.

This will not going to end well.

The United States is rapidly transitioning from being the leader of the world to becoming the leader of the banana republics, where the vast majority are impoverished and controlled by a few ultra-wealthy elite.

We are the antithesis of the "Emerging Markets". The United States now is the leader of a new economic movement. The movement should be called the "Submerging Markets". For we are certainly drowning in our own corruption and greed.