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Politics : Politics for Pros- moderated
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To: LindyBill who wrote (487163)5/15/2012 9:57:24 AM
From: alanrs  Read Replies (1) of 793549
 
Hard to tell. It depends on how much bad debt they are still carrying, an unknown as long as mark to market is suspended. If the banks loose a few trillions in the derivatives arena or this goes on long enough that houses deteriorate to the point of a special trash pickup, the billions they are sitting on won't cover it. Maybe that's why they are sitting on it, they've (the banks) got a rough idea of what the losses might be. They have to by now, they're not incompetent or stupid.

And it's a good deal getting money from the Fed at 0.1% (or from you and me at 0.5%) and loaning it to the government for 1.8%. A decent port in a storm.

ARS
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