Banks in survival mode. What you described reminded me of banking during the farm crisis of the 80's. Agriculture and lending were two words many banks did not want to hear in the same sentence.

"That is why the FED did what they did.....and printed money out of thin air"

I'm so glad you said that. There is so much denial about that. How can anyone with a straight face say the Fed did not fire up the printing press (electronic digital of course, not paper) when they bought all those assets? What are we supposed to believe they bought them with, Wampum? Of course they created money out of nothing and increased demand for assets that were in very low demand. Took poor quality assets purchased from bank and financial institution balance sheets and replaced it with crisp new digital deposit money, for the banks/institutions to go spend on something else.

The BOE claims that QE does not give banks "free money" as some claim. But I would say buying toxic assets from them paying full price for what might be worth 50 cents on the dollar, and replacing it with deposit money, is about the same as giving banks free money. If I had a cow with a broken leg and the central bank told me they would trade me a healthy cow for it even up, I would look at as them giving me money.

But I digress from the current topic.

Thanks for all your input.

John