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Central Missouri | Nothing has changed since then. In fact it has gotten worse. Thje banks balance sheets are underwater even further than they were then.
There is no fix to this problem except to paper it over. The economy won't grow even close to what we need which is 5% year over year for 10 years. It takes 2% just to create jobs for the new people entering the job market not to mention creating enough jobs to get unemployment back to 5%.
To create jobs banks have to be willing to lend money to business. That isn't happening. If you were bank of America and can borrow money from the fed at .25% and then buy 5 treasury notes from the govt at 2.5% for a risk free 2.25% profit would you lend to business?
If you were the fed govt and needed to sell 3 trillion of paper this year would you want BofA lending to business or would you want them buying bonds, bills, and notes.
We have passed the point of fixing unless we default some day or devalue the currency by printing. jmo
Denninger makes my point much better than I
http://market-ticker.denninger.net/archives/2083-Oh-The-Huge-Manate...
Edited by ehoff 3/15/2010 23:01
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60 Minutes breaks the story of the decade.
