Banks are doing fine

CITIGROUP

The company said the SIVs' assets have been reduced by more than 40% to $49 billion from a total value of $87 billion in August, while "maintaining the overall high credit quality of the portfolio."

SIVs are funds that use money borrowed under short-term agreements -- typically commercial paper -- to buy longer-term, higher yielding debt investments, which have included subprime mortgage-related assets.

A 40% decline from August --> December ...

Luckily they didn't "mark to market" their SIV's or losses would have been even bigger. Hence, an asset that nobody wants to buy is worth 0 ; nada ; zero ; nul ; nihil!



Don't panic, there is no housing crash, everything is fine.

When will we see the first run on the banks?
When will Countrywide Financial go bankrupt?
What bank will go bankrupt first?