The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Jim McMannis who wrote (133360)	7/12/2008 5:48:35 PM
From: ChanceIs	Read Replies (1) of 306849

>>>They do not make the list public to prevent a run on those banks.<<< Not sure if relevant, but there was the "discount window" stigma up until last summer when Bernanke started slashing the discount rate. Those going to the "discount window were deemed to be in trouble, so nobody used it. Relatedly, the LIBOR scandal was all about banks understating what they had to pay depositors. If depositors wanted a lot to loan to you overnight, that meant that they smelled something fishy. So certain banks would have to pay say...8%...but they would tell the LIBOR folks that they were borrowing at say...6%. The LIBOR folks publish the bank's identity and the rate. Of course lying to the LIBOR folks is quite illegal. That matter kind of got swept under the rug. I guess that they felt that enough light had been shone upon it, and that confidence had already been sufficiently compromised. Banks get away with a lot in order to prevent further erosion. Criminal not to disclose who is on death watch??? Great question. The entire ratings agancy matter will be reviewed when we begin to pick up the pieces.

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