A couple of things. First, it's been reported that Bank of America has suspended its construction loans to McDonald's for their add-on coffee bars. Considering the bank, BoA, and the financial strength of McDonald's, suspension/canceling these particular loans doesn't makes sense - particularly because McDonald's is a cash machine, and the loans (about $100,000 per store) are co-signed by the franchisees. Unless, of course, BoA has experienced a run which in turn has severely reduced their liquidity.
Second, online brokerages are apparently experiencing a flight of cash, online traders moving their cash to banks - that is, cashing in and getting out. --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
