"Give me the cash!"
Posted on 02/18/2010 11:27:21 AM PST by blam
How about another chart showing the “Ratio of cash to real-estate loans on which no payment has been made in six months but they haven’t foreclosed on because that would require officially booking the loss”?
That one would probably be sitting down around 7%.
No idea, but they assured me that if you were ‘good enough’, you could get a loan and if you couldn’t get a loan, you didn’t deserve one.
And I was appalled at their responses.
Banks are “hoarding cash”?
That sounds crazy. Maybe they saw the heavy inflation coming, with interest rates so low people would be stupid to leave cash in the bank instead of buying land in the country.
"Give me the cash!"
They predict 16% inflation THIS year don’t they?
First of all it’s NOT cash per se. It’s deposited capital. Beware of these kinds of stories. I’m NO fan of the banks in this country, and I’d like to stage my own coup, namely have at least 1/3rd of all American’s withdraw their money for a month or two.. But this article is inaccurate, in that, it tries to portray that the banks have actual CASH on hand.. It is not the case.
Tim-
They are actually acting very smart, there area a lot of bad loans on the books.. also if gov is dum enough to give you free cash and then sell you securities that pay you nice interest? hell why not
The problem isn’t adequacy of cash reserves.
The problem is adequacy of bank capital ... and the opinion is widespread that, at real market value, bank capital is less than zero at many, many banks.
Cash reserves and bank capital are entirely different things. A sound bank requires adequate cash reserves for deposit withdrawals in the short term and adequate bank capital for survival in the long term.
How does the spike reflect the sharp decline in entrepreneurial activity as a result of the Dems Socialist agenda? In other words, who would want to borrow money in this climate? (Other than an already failing business.)
Wish we could. I heard on the news this morning that the Ritz Carlton (South of Las Vegas) is permanently closing their doors. Vegas is in very serious trouble with forclosures skyrocketing and Casinos losing more money than ever.
And, to top it all off, FOREIGNERS are buying up land and property there. I would love to see law passed that only citizens would be eligible to purchase land in this country.
This problem is nothing that couldn’t be solved with regime change in Washington.
Horrendous story, jeez. If you penalize something, you tend to get less of it. If you subsidize something, you tend to get more of it.
They’re afraid of the coming runs and they’re preparing for them as best they can.
Your exactly right. Gold & Food will be King in the coming Depression. So buy lots of 2 for 1’s.
They are most certainly hoarding cash, we have been told by many contractors during my husband’s work search that the reason construction jobs are down in our area is that the banks are not loaning money or if they do, they want 20 - 25% of the value of the project up front as a retainer. Most small construction businesses are barely keeping their doors open, they can’t afford that.
Thats not going to happen.
Have you heard the reports??
16% inflation predicted?? It’ll be higher.
Banks “hoarding” dollars, they expect people will take their money out instead of watching them shrink in value.
They will spend it but there will be only temporary because we are on a downward death spiral economically.
The Great Fall is coming.
The money is running out. It gets bad when the government wants people to make runs on the banks.
...and the only solution is for the government to take the banks over.
Now some will call this “fascism”, but we like to think of it as “wealth redistribution”....
Yes it is bad.
The government wants a run on the banks.
Would you rather watch heavy inflation shrink your bank account value or spend it?
What happens when everyone has spent their money and there is nothing left?
A Great Big Fall is coming.
That is why I save our pay stubs until we get our W-2 forms. However, the company he works for should have been able to provide you with that information.
Blam what do you think of the BI site? I find it to be a bit like the People Magazine for the WS junkies...the type of crap that Jim Cramer sells. the commenters though appear to be little Bolsheviks.
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