The key question is: What happens to bank assets once Treasury rates rise. Won't that put many finacial institutions upside down yet again. In other words, will the Fed raise rates when they know it will bankrupt the banking system? Banks own over 20% more Federal Debt than last year. They aren't lending to consumers but to the government. It is a huge conflct of interest!
Submitted by Michael Pento on Fri, 2009/12/04 - 1:25pm »