On August 17th, I reported:

Wells Fargo loans were worth $34.3 billion less than balance sheet, equal to 70% of its Tier 1 common equity. This difference had grown by $19 billion in six months. (Sorry Warren, not like we didn’t warn you). I guess their 25 billion dollar bailout didn’t cut it either.

So why should their stock’s abrupt reversal of fortune yesterday come as a surprise?

Buffet’s pep-talks about Well’s “sound model” is pure horseshit. They are bankrupt. The walking DEAD.
Fargo, North Dakota, on the other hand has “wells-a-plenty”, which will never run dry, thanks to the State’s Sovereign Credit economy.

The Bank of North Dakota does not engage in the derivative swindle that killed Wells Fargo. They operate as a BANK, which serves the public trust, and the function to extend credit, NOT a speculative, post Glass Steagall gaming casino with an ALL-IN capital reserves bet on a roll of the derivatives dice – which always comes up “Snake Eyes” in the deceitful Casino of debt, known as Wall Street.

Neither will the Bank of Florida fall prey to the seduction of the short term investment income spike as a trade-off for the life-long socialized risk protection of Wall Street. And when Florida’s State Bank starts fixing this mess, other States will follow.

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