What Mike Tyson can Teach us About Bank Resolutions

Fed Orders Banks To Create ‘Super Secret, Entirely Useless’ Plan To Avoid Blowing Each Other Up | ZeroHedge.

Former heavyweight champion Mike Tyson once said, “Everyone has a plan. And then they get punched in the mouth.”

Just imagine that you are a heavyweight boxer, and you are fighting Mike Tyson for the belt in 1989. You have prepared your body and mind for months. The bell rings. You approach your foe across the ring. Then you exchange blows taking a shot to the mouth. At that point you realize that despite all of your training and planning if he keeps hitting you like that you will not only lose the fight but your life.  Then, you create plan B which is slumping to the canvas until the ref counts to 10, and you get to live another day and count your money.

The parable of Mike Tyson is meant to show that real conditions quickly get in the way of expected conditions. This is the problem with these bank resolution plans. The real conditions that the plan is to be executed in differ markedly what was accounted for in the plan.

When the bankers realize that they cannot save their institutions, they will crumple to the canvas and live to count the money they already made. The taxpayers will be left with the mess.

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