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Another pressure point on bank profits is the haircut they must take on collateral they utlize to do their business. You used to be able to borrow 99.5% on the face value of Treasuries. Now you can only get 91 or 92% of face value. On corporates you used to get 95% of the value as collateral; now you only get 75%comment:
Could this be a phenomenon that is related to all of this money printing?
When all you produce is paper, it is only natural that it gets manifested somewhere. Everyone needs to get into their bones the understanding that you can't create value out of thin air. You can create currency that way, but not value. Currency and value are not synonymous.
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