Confidence can mean many different things. For example, I am quite confident a huge percentage of banks are insolvent.
I am also confident the vast majority of banks are hiding bad housing loans, bad commercial real estate loans, and have not properly marked-to-market probable credit card losses. Moreover, I am confident that large banks, especially Citigroup, are still hiding hundreds of billions of garbage in off-the-book SIVs.
Sadly, the Fed is not just turning a blind eye to such behavior, but encouraging it.
To help pay for hidden and pending losses, I am confident that banks will raise fees as much as much as permitted by law to nickel and dime customers to death.
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