[HLS]

There is desperation in the air…

There are people who are buying T-BILLS at less than 2% return who are well aware of what FDIC institutions are offering.

The Discount Rate is what ELIGIBLE institutions can borrow from the FED at, which is 2.25% this week.

The Fed Funds Rate is what banks lend to each other at, which is currently 2.00%

The 11th District Cost Of Funds Index (COFI) is
the weighted average interest rate paid by 11th Federal Home Loan Bank District (CA,NV,NV) savings institutions for savings and checking accounts. It is currently 3.28%

So, this means that the public is loaning to the higher paying banks who appear to be in some sort of trouble,
because the other banks may not trust them.

If they were ELIGIBLE to borrow from the Federal Reserve or other banks, they sure wouldn’t be offering to pay double that rate because they are generous.

They can never borrow their entire assets from the FED, nor other banks, but if they were solid, they wouldn’t be offering such high rates. They do need a base of consumer deposits, but understand why some are offering MUCH higher rates than others.

When looking at 4.50% instead of 2.50%, it’s not just “2 points” it is 80% more….
Don’t assume that FDIC ins. means ZERO risk…

Although we all expect FDIC to step up to the plate the next business day to offer coverage to a failed bank, this just may not be possible if it is a large bank.

I don’t know what the worst case scenario is,, I suppose that it is paying back the principal over time, without paying any interest on the funds ?

[HLS]

There is desperation in the air…

There are people who are buying T-BILLS at less than 2% return who are well aware of what FDIC institutions are offering.

The Discount Rate is what ELIGIBLE institutions can borrow from the FED at, which is 2.25% this week.

The Fed Funds Rate is what banks lend to each other at, which is currently 2.00%

The 11th District Cost Of Funds Index (COFI) is
the weighted average interest rate paid by 11th Federal Home Loan Bank District (CA,NV,NV) savings institutions for savings and checking accounts. It is currently 3.28%

So, this means that the public is loaning to the higher paying banks who appear to be in some sort of trouble,
because the other banks may not trust them.

If they were ELIGIBLE to borrow from the Federal Reserve or other banks, they sure wouldn’t be offering to pay double that rate because they are generous.

They can never borrow their entire assets from the FED, nor other banks, but if they were solid, they wouldn’t be offering such high rates. They do need a base of consumer deposits, but understand why some are offering MUCH higher rates than others.

When looking at 4.50% instead of 2.50%, it’s not just “2 points” it is 80% more….
Don’t assume that FDIC ins. means ZERO risk…

Although we all expect FDIC to step up to the plate the next business day to offer coverage to a failed bank, this just may not be possible if it is a large bank.

I don’t know what the worst case scenario is,, I suppose that it is paying back the principal over time, without paying any interest on the funds ?

[HLS]

Doc,,
You’ve sold yourself short..
4.8% was a crappy rate 2 years ago and 2.30% is crappy today, as well as 2,71% for a 1 YR CD..

Liquid rates are in the high 3’s today, maybe 4%, and I am pretty sure that you can get well over 4% for a 1 or 2 year CD.
It’s FDIC insured. The govt is bailing out homeowners, they will bail out bank depositors too.

Assuming that you want to have US$ account, I think it’s foolish to not go to the highest paying, riskiest FDIC insured joint.

Just know the FDIC limits of coverage per account, etc.

[HLS]

Doc,,
You’ve sold yourself short..
4.8% was a crappy rate 2 years ago and 2.30% is crappy today, as well as 2,71% for a 1 YR CD..

Liquid rates are in the high 3’s today, maybe 4%, and I am pretty sure that you can get well over 4% for a 1 or 2 year CD.
It’s FDIC insured. The govt is bailing out homeowners, they will bail out bank depositors too.

Assuming that you want to have US$ account, I think it’s foolish to not go to the highest paying, riskiest FDIC insured joint.

Just know the FDIC limits of coverage per account, etc.

[HLS]

Doc,,
You’ve sold yourself short..
4.8% was a crappy rate 2 years ago and 2.30% is crappy today, as well as 2,71% for a 1 YR CD..

Liquid rates are in the high 3’s today, maybe 4%, and I am pretty sure that you can get well over 4% for a 1 or 2 year CD.
It’s FDIC insured. The govt is bailing out homeowners, they will bail out bank depositors too.

Assuming that you want to have US$ account, I think it’s foolish to not go to the highest paying, riskiest FDIC insured joint.

Just know the FDIC limits of coverage per account, etc.

[HLS]

Doc,,
You’ve sold yourself short..
4.8% was a crappy rate 2 years ago and 2.30% is crappy today, as well as 2,71% for a 1 YR CD..

Liquid rates are in the high 3’s today, maybe 4%, and I am pretty sure that you can get well over 4% for a 1 or 2 year CD.
It’s FDIC insured. The govt is bailing out homeowners, they will bail out bank depositors too.

Assuming that you want to have US$ account, I think it’s foolish to not go to the highest paying, riskiest FDIC insured joint.

Just know the FDIC limits of coverage per account, etc.

[HLS]

Doc,,
You’ve sold yourself short..
4.8% was a crappy rate 2 years ago and 2.30% is crappy today, as well as 2,71% for a 1 YR CD..

Liquid rates are in the high 3’s today, maybe 4%, and I am pretty sure that you can get well over 4% for a 1 or 2 year CD.
It’s FDIC insured. The govt is bailing out homeowners, they will bail out bank depositors too.

Assuming that you want to have US$ account, I think it’s foolish to not go to the highest paying, riskiest FDIC insured joint.

Just know the FDIC limits of coverage per account, etc.

[HLS]

JWM,,,

I have finally figured out what is important here..

The “Best Chinese Buffet” thread that will not end currently has 1128 hits heading to 3 pages.

This KPMG thread has 128 hits,, 11% of the above.
and 2 posts from the astute on this site.
*******************************
I try to help several with honest help about their loans and what they actually qualify for, and the thread dies.

If I lied to them and jerked their chain and told them that they qualified for what they really don’t, we’d still be talking about it.

It’s also how you end up with what I affectionately call “morons with mortgages” who don’t want to listen to the truth and what’s best for them.

Tell people what they want to hear, not the truth.
I guess that’s what KPMG did.

[HLS]

JWM,,,

I have finally figured out what is important here..

The “Best Chinese Buffet” thread that will not end currently has 1128 hits heading to 3 pages.

This KPMG thread has 128 hits,, 11% of the above.
and 2 posts from the astute on this site.
*******************************
I try to help several with honest help about their loans and what they actually qualify for, and the thread dies.

If I lied to them and jerked their chain and told them that they qualified for what they really don’t, we’d still be talking about it.

It’s also how you end up with what I affectionately call “morons with mortgages” who don’t want to listen to the truth and what’s best for them.

Tell people what they want to hear, not the truth.
I guess that’s what KPMG did.

[HLS]

JWM,,,

I have finally figured out what is important here..

The “Best Chinese Buffet” thread that will not end currently has 1128 hits heading to 3 pages.

This KPMG thread has 128 hits,, 11% of the above.
and 2 posts from the astute on this site.
*******************************
I try to help several with honest help about their loans and what they actually qualify for, and the thread dies.

If I lied to them and jerked their chain and told them that they qualified for what they really don’t, we’d still be talking about it.

It’s also how you end up with what I affectionately call “morons with mortgages” who don’t want to listen to the truth and what’s best for them.

Tell people what they want to hear, not the truth.
I guess that’s what KPMG did.

[HLS]

JWM,,,

I have finally figured out what is important here..

The “Best Chinese Buffet” thread that will not end currently has 1128 hits heading to 3 pages.

This KPMG thread has 128 hits,, 11% of the above.
and 2 posts from the astute on this site.
*******************************
I try to help several with honest help about their loans and what they actually qualify for, and the thread dies.

If I lied to them and jerked their chain and told them that they qualified for what they really don’t, we’d still be talking about it.

It’s also how you end up with what I affectionately call “morons with mortgages” who don’t want to listen to the truth and what’s best for them.

Tell people what they want to hear, not the truth.
I guess that’s what KPMG did.

[HLS]

JWM,,,

I have finally figured out what is important here..

The “Best Chinese Buffet” thread that will not end currently has 1128 hits heading to 3 pages.

This KPMG thread has 128 hits,, 11% of the above.
and 2 posts from the astute on this site.
*******************************
I try to help several with honest help about their loans and what they actually qualify for, and the thread dies.

If I lied to them and jerked their chain and told them that they qualified for what they really don’t, we’d still be talking about it.

It’s also how you end up with what I affectionately call “morons with mortgages” who don’t want to listen to the truth and what’s best for them.

Tell people what they want to hear, not the truth.
I guess that’s what KPMG did.

[HLS]

Link to YouTube and Ron Paul

[HLS]

Link to YouTube and Ron Paul

[HLS]

Link to YouTube and Ron Paul

[Author]

Posts