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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (40180)	9/20/2008 8:46:42 PM
From: pogohere	Read Replies (1) \| Respond to of 218030

"These banks are really only Potemkin banks, as they can't afford to lend in any case, being short capital. I.e., they really aren't banks anymore. But their "liquidity" could be siphoned back to the Fed to relend to other Potemkin banks. This all would be accomplished without an increase in liquidity in theory, as this would all amount to recycling the same funds over and over. Fed policy right now appears to be to prevent as many lines as possible from forming at insolvent banks. In the not very far run (as in maybe within 90 days or so), however, the default/foreclosure rates will force an expansion of liquidity in any event and this exercise will be futile." Message 24858521