http://econintersect.com/b2evolution/blog2.php?disp=comments en-US http://backend.userland.com/rss 60 Fri, 02 Dec 2011 13:55:09 +0000 Mohan Desai [Visitor] c3363@http://econintersect.com/b2evolution/ Interesting article. What I still don't understand is what happened to the 4t in higher debt ? The increase in liabilities should result in corresponding increase in assets somewhere. I would like somebody attempt to put together a cash flow and balance statement for the 4t liabilities. http://econintersect.com/b2evolution/blog2.php/2011/12/01/yes-virginia-the-banks-really-were-bailed-out#c3363 Fri, 02 Dec 2011 01:48:35 +0000 Joe Firestone [Visitor] c3358@http://econintersect.com/b2evolution/ Of course, the bailout was "lemon socialism". Also, please don't forget the credit card subsidiaries of the banks, and the hidden "tax" the Government allowed them to impose on consumers. Before the crash, the cost of money to the banks was very low and CC interest rates probably provided gross profit margins in the neighborhood of 5-7% on disciplined consumers.<br /> <br /> After the crash, the Fed drove interest rates down to near zero, but the Government allowed the CC companies to increase their CC interest margins by 50 - 70 percent with no regulation at all. Thus, consumers were made to bail out the banks directly, and not simply through the Fed's actions.
After the crash, the Fed drove interest rates down to near zero, but the Government allowed the CC companies to increase their CC interest margins by 50 - 70 percent with no regulation at all. Thus, consumers were made to bail out the banks directly, and not simply through the Fed's actions.]]> http://econintersect.com/b2evolution/blog2.php/2011/12/01/yes-virginia-the-banks-really-were-bailed-out#c3358