What they are intended to reflect is the uber-shuffle of borrowing that is underway. The reason why inflation will not be a problem is because Treasury issuance is replacing private sector borrowing. The Fed and Treasury Department have become the last resting place of the junk that was sitting on bank balance sheets.
These assets are still over priced, there is no private sector bid at current marks. Interbank financing has only rebounded because the banks have guaranteed financing, not because they want to play nice.
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