tag:blogger.com,1999:blog-2611021408437270881.post6088638930489162591..comments2023-10-26T00:43:12.789-07:00Comments on Skeptical CPA: William Baldwin SpeaksIndependent Accountanthttp://www.blogger.com/profile/07800220849565219709noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-2611021408437270881.post-28154330224466099502008-12-16T17:07:00.000-08:002008-12-16T17:07:00.000-08:00I think the gross figure for commercial banks is a...I think the gross figure for commercial banks is about 60% deposit funded and 40% wholesale market funded...<BR/><BR/>So even if the deposit base remains in place and requires slightly higher rates the wholesale funding will be crushing? Eh?<BR/><BR/>I wonder what the comps are on term funding between now and S&L time... <BR/><BR/>Duration mismatch the hobgoblin of fractional banking... :{Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2611021408437270881.post-192088042313591102008-12-16T12:45:00.000-08:002008-12-16T12:45:00.000-08:00What we need is 10% yield on AAA fixed income secu...What we need is 10% yield on AAA fixed income securities and 3% home mortgages. 10% to take care of those on fixed income, and 3% to let people keep their homes.<BR/><BR/>Let's see the Fed engineer that. Of course there is this small problem of getting the banks to provide loans.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2611021408437270881.post-26163632775374732032008-12-16T12:12:00.000-08:002008-12-16T12:12:00.000-08:00Anonymous:No one knows how Congress will change th...Anonymous:<BR/>No one knows how Congress will change the tax laws. My posts on 6, 23 and 25 November 2008 are relevant to your question: Ben Franklin Was Right, War Story and Ben Franklin-2. We only<BR/>know the tax laws will change.Independent Accountanthttps://www.blogger.com/profile/07800220849565219709noreply@blogger.comtag:blogger.com,1999:blog-2611021408437270881.post-67626923674625476732008-12-16T12:03:00.000-08:002008-12-16T12:03:00.000-08:00It mentions Roth IRA. What about SPE-IRA and/or R...It mentions Roth IRA. What about SPE-IRA and/or Regular IRA? Will they also be affected, and if so, how?<BR/><BR/>Thanks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2611021408437270881.post-26476387463975538872008-12-16T10:29:00.000-08:002008-12-16T10:29:00.000-08:00Anonymous:This is what happened to the S&Ls be...Anonymous:<BR/>This is what happened to the S&Ls between 1979 and 1986. As interest rates went up, the value of the fixed-rate mortgages they held fell and they became insolvent. This is why financial institutions should "match maturities", i.e., to avoid interest rate squeezes. As for inflation crushing banks, consider, banks also have liabilties which are dollar denominated. As long as a bank can pay its depositors,it is "solvent". Or so the bank thinks.Independent Accountanthttps://www.blogger.com/profile/07800220849565219709noreply@blogger.comtag:blogger.com,1999:blog-2611021408437270881.post-80915945646975976642008-12-16T10:23:00.000-08:002008-12-16T10:23:00.000-08:00Wouldn't inflation crush the banks with long dated...Wouldn't inflation crush the banks with long dated assets?<BR/><BR/>After so much effort to save the banks...<BR/><BR/>Am I confused? (Don't answer that!)Anonymousnoreply@blogger.com