From the excellent credit analysts at Bank of America, here’s a quick Tarp-junkie roundup:
The thing about being addicted to something - like easy credit - is that generally, the best way off it is not to engorge yourself with more. As the FT reports this morning:
While some banks are using the [Tarp] capital to replenish battered balance sheets, several are accessing what they see as relatively inexpensive capital for deals.
Greed and fear: there’s no contrition in sight. Consider:
It doesn’t matter how much Hank Paulson gives us… no one is going to lend a nickel until the economy turns. Who are we going to lend money to? Only people who don’t need it.
Related links
Losing control - FT Alphaville
