why the fed will save bnb, page-10

Lower LIBOR is the first sign that the current crisis is easing.

Deflation is the MAJOR problem for BNB - the rate of deflation when added to the baseline debt interest rate is the rate of payment for assets. Deflation is why BNB got into serious trouble and is also the key factor in lowered expectation for prices in asset sales.

This deflationary cycle will be no where near 5 years. (If if is 5 years MQG and all the Aussie banks will be gone).