Start Explaining, you mental midgets
Time Bomb? Banks Pressured to Buy Government Debt
CNBC.com Senior Writer
US and European regulators are essentially forcing banks to buy up their own government's debt—a move that could end up making the debt crisis even worse, a Citigroup analysis says.
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Regulators are allowing banks to escape counting their country's debt against capital requirements and loosening other rules to create a steady market for government bonds, the study says.
While that helps governments issue more and more debt, the strategy could ultimately explode if the governments are unable to make the bond payments, leaving the banks with billions of toxic debt, says Citigroup strategist Hans Lorenzen.........
We are waiting. Go ahead, EXPLAIN IT.
After all that pouting about REGULATIONS ON BANKS
Here is your big chance before you must SHUTUP FOREVER.
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