8 ms·
So banks everywhere are sitting on a bunch of assets that scare the hell out of them, or have the potential to scare the hell out of them; they don't feel the a
by euroclydon 17y ago
So banks everywhere are sitting on a bunch of assets that scare the hell out of them, or have the potential to scare the hell out of them; they don't feel the assets have enough intrinsic value, without the guarantee of some government or central bank backing them up. If that government or central bank doesn't come through, then these banks will all race to dump these assets.
I'd like to see an article sort through one of these jittery bank's assets and place them into the two categories: 1) scares_the_hell_out_of_me, and 2) I_feel_pretty_good_about_this.
I wonder if we'd find the scary ones are strip malls in underpopulated areas, MLM schemes, sub-prime mortgage debt, and that the good ones are core manufacturing, agriculture, minerals, etc. If so, what's wrong with the banks dumping the crap?
- loganfrederick 17y agoThe problem is that most of these assets, on an individual level, are small enough to not have to be explicitly disclosed publicly, making such an analysis near impossible for an outsider.