If anyone thinks the financial crisis is over, then why are the banks and IB's selling their LBO debt at deep discounts AND financing the transactions at capital costs BELOW their actual cost of capital (not counting the gifts from the FED)?

The FED's money is the Treasury's money and the Treasury's money is YOUR money. Sooo...that means that the banks are using your money to rid themselves of problem debt and finance it at cheap rates subsidized by you.

But, then again, it's only a problem once everyone figures it out.

Just don't ask the question "Exactly how much debt do we owe?" While relevant, it's not immediately life threatening. It's like saying "OK, we owe $1mm and we make $100k but I can afford the payments."

But don't EVER ask the question "And just how much does it cost to service that debt?" This question is just a bit more timely, like a femoral laceration. This is the same as "Holy Cow! If I add up all of my mortgage debt, car loans, credit card debt, boat loans, second home mortgage, HELOC's, RV loans, credit lines, student loans (that I am paying for my kids), payday loans to cover the past due credit card payments, property taxes, con summer loans to pay for the new furniture and plasmas and any anything else that comes out of my paycheck, I might have just a weeeee problem here." Time for the wife to work a double at the Thrifty Mart.

OK, think of that and then add lots and lots and lots of zeros and you begin to get the idea that consummers and the government might be in the deep end with lead flippers. Or, just don't ask...