Banks aren't lending, what are they doing with the $700B bailout?
- Thread starter crgarcia
- Start date
That and holding on to it in order to maintain well-capitalized status
There may be more problems. I notice this story in the news today:
Fed Grants GMAC's Request to Become Bank-Holding Company
Wall Street Journal - 28 minutes ago
By JON HILSENRATH and APARAJITA SAHA-BUBNA The Federal Reserve approved GMAC LLC's application to become a bank holding company, giving the struggling auto-financing arm of General Motors Corp.
I associate the current crisis with mortgages. Making GMAC a bank might mean auto loans are defaulting in significant numbers. Banks might hold car loans.
Fed Grants GMAC's Request to Become Bank-Holding Company
Wall Street Journal - 28 minutes ago
By JON HILSENRATH and APARAJITA SAHA-BUBNA The Federal Reserve approved GMAC LLC's application to become a bank holding company, giving the struggling auto-financing arm of General Motors Corp.
I associate the current crisis with mortgages. Making GMAC a bank might mean auto loans are defaulting in significant numbers. Banks might hold car loans.
Truth be known....
Most of the banks are simply INSOLVENT....
One question being....why has the FED not honored the
freedom to information act....as to the amounts given to which banks ?
Welcome to the make believe world of "third tier assets" and bogus bonuses....and "marking to market".....
..................................................................................
The banking system is hanging by a thread....and cannot even think about adding risk to what is in their name....
The government is both :
1) Giving them money up front....
2) Giving them money as you go....."float"....
And even so....will have to be given the time to replace
several $Trillion that has been lost by them....
Now welcome to the period where the main game will be bonds versus stocks....
Many bonds 10 to 50 cents per $1....with yields by debt contract in the double digits....
There will be a big focus on this area of finance in the next 18 months....
Equity will be second to this asset class during this period....
The FED is pushing on a string if viewed to benefit the consumer....if viewed trying to save the banking system....possibly pushing on a firmer string....
Most of the banks are simply INSOLVENT....
One question being....why has the FED not honored the
freedom to information act....as to the amounts given to which banks ?
Welcome to the make believe world of "third tier assets" and bogus bonuses....and "marking to market".....
..................................................................................
The banking system is hanging by a thread....and cannot even think about adding risk to what is in their name....
The government is both :
1) Giving them money up front....
2) Giving them money as you go....."float"....
And even so....will have to be given the time to replace
several $Trillion that has been lost by them....
Now welcome to the period where the main game will be bonds versus stocks....
Many bonds 10 to 50 cents per $1....with yields by debt contract in the double digits....
There will be a big focus on this area of finance in the next 18 months....
Equity will be second to this asset class during this period....
The FED is pushing on a string if viewed to benefit the consumer....if viewed trying to save the banking system....possibly pushing on a firmer string....
Quote from bond tr4der:
Buying bottoms and tops?
