http://www.financialsense.com/fsu/ed...

Indeed, over 150 banks already have worrisome “Texas Ratios” according to a list prepared by Agora Publishing. These 150 have Texas Ratios in excess of 100. [The Texas Ratio is calculated by dividing the bank’s bad/delinquent loans by cash on hand plus reserves, if any, to cover those bad loans.] A Texas Ratio in excess of 100 spells trouble.

• The Financial Systemic and Geopolitical Risk is high and increasing. The Bush Administration and U.S. Federal Reserve policies have been the primary cause of the U.S. National Debt ballooning to over $9 trillion. Since this debt can not, under any reasonable scenario, be repaid, likely the only way out is repudiation of this debt through The Fed’s hyperinflation of the Money Supply and consequent continuing devaluation of the U.S. Dollar. The rest of the world collectively is aware of this trend and is moving to establish other mechanisms and Asset Reservoirs in a move away from the U.S. Dollar as the World’s Reserve Currency, and from entanglements with the U.S. in general.

The first step in this trend was noted by the wise and perceptive analyst, Dan Norcini, when he noted recently the massive move of Foreign Governments out of U.S. agency (e.g. Fannie Mae and Freddie Mac) debt and into U.S. Treasuries. That is the First Shoe which Foreign Governments have recently dropped on the U.S. Economy. The Other Shoe, which would utterly doom the U.S. Economy, has not yet dropped and not will for a while. That is a significant move out of U.S. Treasuries. But that day may be coming.