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0 pointsDanieru6y ago0 comments

No banks need a bailout. In fact that banks are now required to act so super safe is part of what is driving the rapid decline.

As corporate bonds get more risky banks are not allowed to hold as much of them. Triggering sales, which increases the risk, and thus triggers more sales.

Banks are fine, it is the corporations which need to re-issue bonds that are going to hit a wall.

0 comments

paulsutter6y ago

Banks are fine as long as they aren't holding the debt of companies that hit the wall. It's a bailout.

icelancer6y ago

>> Banks are fine, it is the corporations which need to re-issue bonds that are going to hit a wall.

"Need" to re-issue bonds? Did anyone force them to buy into a model that has a huge linchpin failure?

SilasX6y ago

Wait until the mortgage payments stop coming in and then tell me whether they need a bailout.

Edit: Why is this controversial? If people can't afford to make their mortgage payments, and political aid doesn't come through, many banks will definitely be in need of a bailout.

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