Jamie Dimon Screwed the American people and all the Thanks He Gets is Throat Cancer

Discussion in 'Political Satire' started by Gary Anderson, Aug 30, 2014.

  1. Toddsterpatriot
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    Toddsterpatriot Platinum Member

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    The bank requires it. The bank lends a fixed loan, but assumes the floating rate on the swap.

    If a bank takes the floating side of a swap, the counterparty takes the fixed side.
    The borrower is already taking the fixed side. Why does the bank need more floating side risk?
     
  2. Toddsterpatriot
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    Toddsterpatriot Platinum Member

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    Thanks for the link.
    It really confirms that you don't know what the hell you're talking about.
     
  3. Gary Anderson
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    Gary Anderson VIP Member

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    Because the Fed has told the banks that interest rates will stay low and if they don't for a short time, they will be bailed out by deposits and or government. Look at the chart. The banks win with LIBOR virtually always being lower than the fixed swap rate. I don't care if you believe it or not because the chart doesn't lie. I am not going to argue about the veracity of that chart.
     
  4. Toddsterpatriot
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    Toddsterpatriot Platinum Member

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    Because the Fed has told the banks that interest rates will stay low

    Great, then they benefit when they make fixed rate loans, they don't need an extra swap that doesn't do what you claimed it did.

    I don't care if you believe it or not because the chart doesn't lie.

    Thanks for the chart. It shows what happens when the rate curve inverts. So what?
     
  5. Gary Anderson
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    Gary Anderson VIP Member

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    It shows that all along that chart, if the banks bet on floating, they make money and the people buying protection against inflation pay and lose.
     

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