Paul Smalera

All over Bangkok are massive skyscrapers that were literally abandoned and repossessed by banks when that country went through its own financial crisis, twelve years ago. Thailand waited four years to create a “bad bank,” to help salvage its banking system. In the meantime, the zombie banks of Thailand were unable to get lending started again. The result: these construction projects, into which so much time and resources had been sunk, were total losses. The US has dozens of projects that on hold right now for very much the same reason– lack of liquidity–though we did get here in a different way. Without a bad bank to help free up capital, our cities could soon look a little more like Bangkok. But Obama, Geithner and his team stalling on creating a bad bank. And whehn they talk about creating on, it’s a public private hyrid, which will limit its power to fix the crisis. Read about what happened in Bangkok, and how to avoid its happening to us, here:

Zombie Banks Build Ghost Towers | The Big Money.