Tuesday, November 29, 2011

Big Banks Buying European Debt?

Why would American Banks be lining up to deliver more money to Europe in the next few weeks?  Aside from the possibility of an 8% return on Italian bonds?  Well, what if they've been given a wink and a nod that there losses will again be covered by the Federal Reserve's emergency lending programs.  So, 8% or free loans that they can use to buy 3% US Government debt then convert back to cash on the secondary markets.  Line forms at Wall & Broad.  No pushing Mr. Dimon.

No comments:

Post a Comment