ok so why could this possibly be what the fed does... i know! mark-to-make believe inspires bank rally banks take rally to reissue massive shares +++$$$ stress tests result half of banks failed them ---$$$ but now banks claim they already raised needed money +++$$$ problem solved- hooray hooray cumbayah. is there another line of logic i'm missing or is this pretty much how this hand will unfold?
From George Slezak: If you loan a bank Fed Funds at .25% and have them buy Government guaranteed mortgages at 4.5%, DON'T YOU THINK THEY WILL BE PROFITABLE? The profitable quarter at Wells Fargo is just their taking advantage of free returns. IT DOES NOT MEAN WE HAD ANY REAL ECONOMIC GROWTH.