There will be a strong temptation to paper over the loan problem by printing money.
FSA's top management is intent on hiding the true picture of the non-performing-loan problem.
What Bipop-Carire will not solve, however, is Banca di Roma's bad-loan problem.
Since 1997, when politicians started to realise the scale of the bad-loan problem, only three big banks, and a handful of smaller ones, have gone bust.
Securitisation created a serious agency problem, leaving loan originators, who were paid up-front, with no incentive to avoid bad credits and every reason to piggyback inappropriate products onto good ones (in one particularly depressing tale, a retired postal worker whose mortgage is almost paid off is switched to an interest-only product that leaves him in danger of losing his home).
Bellamy came to the Cardiff City Stadium on a season's loan in August nursing a knee problem.
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In much of Europe, loan losses are no longer the biggest problem.
The second problem is slow growth of loan volumes.
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C. bought a database of subprime loans from a company called Loan Performance in order to study the problem more closely, something that, apparently, no other government regulator had thought to do.
Part of the problem, he says, is loan prices haven't stabilized.
This argument overlooks a business loan, the already existing free market solution to the problem.
Under a World Bank loan, the authorities have continued to improve the framework for problem bank resolutions.
The problem is the country already has 2.5 billion loan on the books with Russia.
For one, the regulator for American housing lenders, the Federal Savings and Loan Insurance Corporation, was widely felt to be part of the problem, much as Japan's finance ministry now bears the onus for the collapse of institutions that it regulates.
And once the banks and the loan brokers start to become more responsible in that area, then the homeowners will have a problem with retaining that American dream.
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