rhino127

Schumer Is Way Off

lets see if the 8 banks you mention will lend this out... I think not because no one will borrow money when LIBOR still stuck above 4% while a month ago it was 2.82%... This despite lack of deals...

What will do with all this capital?

usually traders use 3mths libor + 1-2% as a bench mark for transactions which is not a bad return but where are those deals?

if banks were scared to lend each other what makes you think they will be less scared to lend to businesses... There is no lack of money around the corporate world, it is the consumers who are drowning...

The real issue is demand and the consumers. They seem to have just disappeared in this crisis. What triggers their return is confidence in the economy and their perception of their wealth. This means you MUST reverse the upside down situation of many homeowners. It will take a gigantic "stimulus" package to save this consumer - possible the same amount as the banks! maybe considerably more...