Comments on: US Banks Jumping Without a Reserve? http://www.chrisbrunner.com/2008/02/28/us-banks-jumping-without-a-reserve/ Random comments and thoughts of Chris Brunner Thu, 20 Nov 2008 17:24:15 +0000 http://wordpress.org/?v=2.0.11 by: Mark http://www.chrisbrunner.com/2008/02/28/us-banks-jumping-without-a-reserve/#comment-48532 Mon, 21 Apr 2008 16:24:09 +0000 http://www.chrisbrunner.com/2008/02/28/us-banks-jumping-without-a-reserve/#comment-48532 Not only that, but the banks also increased the reserves they did have by creating off thebalance sheet entities like siv (structured investment vehicles). in other words they showed greater reserves but hid huge liabilities that created the reserves by removing the liabilites from their balance sheets. The reason you see the huge drop is at elast partially due to the fact that many banks brought the sivs back on their balance sheets (mainly in order to protect their reputation). The system needs to be fixed. Let's www.TakeBackTheFed.com ! Not only that, but the banks also increased the reserves they did have by creating off thebalance sheet entities like siv (structured investment vehicles). in other words they showed greater reserves but hid huge liabilities that created the reserves by removing the liabilites from their balance sheets. The reason you see the huge drop is at elast partially due to the fact that many banks brought the sivs back on their balance sheets (mainly in order to protect their reputation).

The system needs to be fixed. Let’s www.TakeBackTheFed.com !

]]> by: Richard Head http://www.chrisbrunner.com/2008/02/28/us-banks-jumping-without-a-reserve/#comment-44482 Fri, 29 Feb 2008 16:02:36 +0000 http://www.chrisbrunner.com/2008/02/28/us-banks-jumping-without-a-reserve/#comment-44482 The gist of what you are saying is true, but the reserve situation under normal circumstances is much worse. I don't think there's ever a 10% reserve... I think its actually closer to a fraction of a per cent. For example, I think for about every $100 in deposits, there's actually about 70 cents held in reserves. So, yeah, the situation is much worse than what you describe. The system is insolvent. There's no other way to explain it. The gist of what you are saying is true, but the reserve situation under normal circumstances is much worse. I don’t think there’s ever a 10% reserve… I think its actually closer to a fraction of a per cent. For example, I think for about every $100 in deposits, there’s actually about 70 cents held in reserves. So, yeah, the situation is much worse than what you describe. The system is insolvent. There’s no other way to explain it.

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