Reply to thread

Message

<blockquote data-quote="duece212" data-source="post: 5399515" data-attributes="member: 558948">I&#039;ve heard you state before that there is no reward without risk.&nbsp; At some point somebody&#039;s trash is somebody&#039;s treasure though, who knows if that price is ever reached.&nbsp; Assets in the form of secured debt owned by a bank will reach a point of good investment for some other institutions at some price.&nbsp; Unsecured debt...well I doubt thats a hot selling point, who knows maybe junk debt collectors get in that market at fractions of pennies on the dollar.&nbsp; Financial institutions also have physical assets worth purchasing...much like wamu&#039;s branches being of interest to JP morgan in their purchase.Sure a bank can&#039;t lend with no deposits, runs on the bank are stopped by the fed if things get deep.&nbsp; Banks aren&#039;t lending any faster now than they did hundreds of billions of bailout dollars earlier, they and their stockholders just feel a little more secure now.&nbsp; Meanwhile joe citizen looking for credit and joe business trying to sell product is still screwed.I still believe all we do by bailing out is keep bloated levels running where they shouldn&#039;t be.&nbsp; Shit has to fall realistically to see where the bottom really is.&nbsp; We can create an artificial bottom but who&#039;s to say that won&#039;t drop out at some point down the road.</blockquote>

[QUOTE="duece212, post: 5399515, member: 558948"] I've heard you state before that there is no reward without risk. At some point somebody's trash is somebody's treasure though, who knows if that price is ever reached. Assets in the form of secured debt owned by a bank will reach a point of good investment for some other institutions at some price. Unsecured debt...well I doubt thats a hot selling point, who knows maybe junk debt collectors get in that market at fractions of pennies on the dollar. Financial institutions also have physical assets worth purchasing...much like wamu's branches being of interest to JP morgan in their purchase. Sure a bank can't lend with no deposits, runs on the bank are stopped by the fed if things get deep. Banks aren't lending any faster now than they did hundreds of billions of bailout dollars earlier, they and their stockholders just feel a little more secure now. Meanwhile joe citizen looking for credit and joe business trying to sell product is still screwed. I still believe all we do by bailing out is keep bloated levels running where they shouldn't be. Shit has to fall realistically to see where the bottom really is. We can create an artificial bottom but who's to say that won't drop out at some point down the road. [/QUOTE]

Verification