Financial System beginning to unravel

[William Meyer]

Looks like investment banks and deposit taking banks are in a dead heat in who unravels this economy first.  Jefferies, Western Alliance, and Zion all have exposure to First Brands and as of now, dont be surprised if there's a run on all 3.  But what is inexcusable is deposit banks causing this much trouble with the plethora of regulations post '08.  Perhaps the inexorable issue yet again is the rule of deposit and loan, as James says.  Depositors are roped into providing capital for schemes that real investors would never consider (CRE) and then bailed out by the state who steers these investment for local tax revenue.