# how bad was the banking collapse



## partdeux (Aug 3, 2011)

apparently much much worse then anybody knew
*http://www.bloomberg.com/news/2011-11-28/secret-fed-loans-undisclosed-to-congress-gave-banks-13-billion-in-income.html*


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## Immolatus (Feb 20, 2011)

Yeah, heard this story this morning. I'd say its not indicative of a collapse, but more indicative of thievery.


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## BillS (May 30, 2011)

It wasn't thievery. There were secret loans that were paid back. The banking industry is so sick that even today the Fed is lending them money at artificially low interest rates. The banks are then buying Treasury bonds with the money. That allows them to make money in an economy when other loans are too risky. When the Euro Zone collapses it won't take much to collapse the US banking system.


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## partdeux (Aug 3, 2011)

BillS said:


> It wasn't thievery. There were secret loans that were paid back. The banking industry is so sick that even today the Fed is lending them money at artificially low interest rates. The banks are then buying Treasury bonds with the money. That allows them to make money in an economy when other loans are too risky. When the Euro Zone collapses it won't take much to collapse the US banking system.


Bill,

WRT your first point, the banks borrowed money and then sold the toxic assets to fannie and freddie clearing them off their books.

WRT loans, fed loans money to the banks at 0% interest. Banks buy treasuries, at 5% interest, making 5% at the expense of the taxpayers. But, it gets better... Those T-Bills are now considered liquid assets, allowing the banks to loan money leading to more fractional banking.

It's a mess.


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## neldarez (Apr 10, 2011)

Does anyone here have any insight or opinion on buying the iraqi dinar? I've had a friend approach me on doing that........but I've prayed about it and haven't felt like I've received an answer yet...........thanks


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## kappydell (Nov 27, 2011)

on a related note, i read in another prep site that one members spouse, a bank president, suddenly told her to spend whatever it took to get a years supply, as he felt that when, not if, the EU went under, US economy would go too. The prepper was delighted as it was no longer necessary to juggle the budget and do it on the sly.


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## Tweto (Nov 26, 2011)

*I would stay away from the dinar.*



neldarez said:


> Does anyone here have any insight or opinion on buying the iraqi dinar? I've had a friend approach me on doing that........but I've prayed about it and haven't felt like I've received an answer yet...........thanks


I have info from a good source that investing in the Dinar would be a bad idea.


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