Tuesday, December 15, 2009

"FAT CAT BANKERS" TIMELINE

BANKING CRISIS caused by FED rate policy, no GOV regulation, greed, stupidity, BANKS insolvent.
FED STEPS IN WITH BAILOUT
Banks don't need to lend, making money from trading desks and excess reserves
GAO drops requirement for MARK TO MARKET ACCOUNTING (banks "appear better off")
Tighter credit standards, less willing borrowers....real change has occurred.
Fed keeps rates at 0% to backstop markets indefinitely
Savers get near 0% return on money markets, must seek RISK for return

Banks wont lend also because they are seeing Commercial defaults crisis on horizon and new wave of public debt crisis in form of ALT A loans.
60% of carry rates above current, yet refinancing is down 57% from last year levels
PHAT CATS?

Yeah we made them fat!

Market soars, on LOW VOLUMES......we have recovery? sure of the fat cats....

Duratek

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