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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus who wrote (54677)	9/20/2013 6:58:41 PM
From: Zincman	Read Replies (1) \| Respond to of 223367

Very informative.. thanks If I follow you.. When Bank A lends money to Joe B, that loan then become an asset on the banks books Joe B repays Bank A w cash over time. All Joe B's payments (cash) are then again considered a liability to the bank until it is loaned out to Joe C? That game continues.. What I don't understand is under this scenario, the only real asset (cancel out the cash on both sides of the transaction) is the parcel held by the bank as collateral. Home, car, wine. ;) Unless the bank can monetize their cash out of dollars and into something else (collateral) they are just pushing paper and making vig.. (cash) Confiscation of collateral due to failure to perform would derisk the cash exposure by monetize paper for 'stuff'. But other than that are they not just trading deck chairs on the USS Dollar Titanic tia