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Politics : Welcome to Slider's Dugout
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To: jim_p who wrote (11494)9/7/2008 3:52:51 PM
From: jim_p11 Recommendations  Read Replies (2) of 50758
 
More red flags and cracks in the system are showing up daily and at an accelerating rate!!

Last week Wells Fargo, which has been touted as one of the two strongest banks left in the financial system, raised $1.75 billion at an incredible interest rate of 9.75% with no redemptions for 5 years. Their CFO has the nerve to come out try to justify it by saying its tax deductable........incredible????

Let's see......prime rate is 4% and Wells Fargo borrows at 5.75% over prime.

Do you think Wells Fargo can make any money borrowing at 9.75% and loaning it out at 4-7.00%????

Why would Wells Fargo even accept that rate if they can borrow at the Fed for almost ONE FIFTH of that rate????

I don't know about you, but it doesn't pass the smell test to me and shows signs of desperation and a lot more going on beneath the surface from what we are being told???

I guess this must mean that the capital markets are closed to all of the other banks who are less credit worthy and we can add them to the list of entities that must be bailed out because if we don't the entire system fails......Ford, GM, FDIC, etc.

Now we are being told by Hanky Panky that somehow the equity at Fannie and Freddie isn’t there anymore???

And by the way the losses to the taxpayers are only going to be $25 billion or so and we may even make a profit………………..imagine that a profit!!! Anyone want to buy a bridge???

I’d be surprised if the losses were less than a Trillion, but that number would cause a panic so I guess we will be eased into the real number over the next year or two.

AMAZING TIMES WE LIVE IN,

Jim
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