Hey Bernanke 1 + 1 will always eventually equal 2. Quit dreaming and go back to kindergarten.

It is funny that if you want to buy a house the Bank wants tax forms and solid proof you have assets even though most banks themselves have even less assets than you do, no revenue after accounting for losses and reserves, and are financially worse off. If only Fannie Mae and Freddie Mac were more strict on the banks dumping home loans onto them as they were about the people buying the homes this banking rot would come to a quick end.

These TBTF banks won’t lend to people without the ability to instantly dump onto the taxpayer anything they write. That doesn’t make them a bank. It makes them a leech. That is why the economy is going nowhere. These TBTF banks are sucking all the assets out of the economy and hoarding it. The only way this puts them ahead is if the economy keeps falling or never recovers. Then the shrinking of America’s capital base by definition means that they own a higher percent of the economy. To them it’s a zero sum game. To think they want to lend is laughable and pathetic. hey already have grown their capital base without lending and with government aid. Now all they need to do is sit back and wait. The Fed made that very comfortable paying interest on deposits to them and giving them a zirp discount window.

If they want to reverse the rot force the Federal Reserve to end zirp for the banks now. If they want to offer zirp they should offer it directly to the people. Of course, they won’t because it’s inflationary, yet they won’t admit giving the banks free money is also inflationary because it’s their friends.

- Moon Kil Woong

Related Posts:

• Better keep an eye on this potential back-door Tarp.
• QUESTIONS THE SENATE NEEDS TO BE ASKING BERNANKE:
• TOXIC ASSETS and the PPIP Death Rattle—(from Denninger)
• Politics, shaky economy create no rush to restructure Fannie and Freddie
• Nothing has fundamentally changed on Wall St or in Washington.

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