Thursday, June 04, 2009

Backing Them Forever

I think the real point is that investors believe the federal government will just keep bailing out the big banks forever.


....adding, I think Yves' take is right. Banks are over their temporary liquidity problem, so they'd rather keep their fantasy accounting than not. That is, until the next foreclosure wave and CRE bust comes, at which point we can bail them out again...