Jun

30

The stress test failure's are all positioning by the Fed to insure there is a buyer of Treasuries when they depart. Just like Toyota is hit with recalls every time GM's inventories get bloated. The Central Planners are simply using shareholder money for their own public/private purposes. Banks are actually overcapitalized for the current loan volume. Moreover, bank disintermediation is beginning to happen at an increasing rate, as why should a bank be in the middle. The banks will offer safety and buy treasuries– the smart money will leave the banks and lend to entrepreneurs. Watch the LendingClub and Prosper.com etc. as they emerge.


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