Thursday, April 22, 2010 - 10:53 PM
Check out this link to an article in cnbc.com
It is titled "/banks May Not Be Lending, But They Are Buying Treasurys"
In short it says the banks, maybe under the order of the Fed, started to buy 10 and 30 year treasuries to support the low interest rate.
Problem is when rates go up, who will cover the 20, 30 or more cents loss on par value. Remeber the banks deposits are insured bt the FDIC.
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