She does a good job of explaining what’s happened, but she is not being fully forthright about the consequences. Read between the lines. PPIP is NOT going to remove anything more than a fraction of the debt from the banks balance sheets. Even if they did, the consumers and businesses who support those underlying and overleveraged loans are given NO RELIEF. The debt is still there and must be serviced, but cannot be.
Elizabeth Warren Introduces COP's August Report:
Corporate defaults just for Q2 of 2009 are DOUBLE THE ENTIRE NUMBER OF 2008! Delinquency rates of residential and commercial real estate are soaring as is delinquency on consumer credit carsds (chart from Calculated Risk):
It will be interesting to watch what happens to Warren in the coming months in regards to her position and the tone of her updates. She is competent but in between a rock and a hard place.