Do you think a little bit of inflation would help them increase their spread on loans and earn more money from their loan portfolios?....has to be a pretty slim margin right now with transaction costs taking a big bite from total revenue.
Also, since the fed is somewhat worried about deflation....How badly could the banks be sunk in an asset-deflation scenario??? Bad or really bad??
I inherited my shares in BOKF as a result of stock issued for the acquisition of the shares I had in a smaller local bank....and part of the deal was to provide a 5-year floor (essentially long term put options) for the price of the BOKF stock I received, with a guarantee of an 8%/year price growth on (1/2 of the shares).
The recent 30%+ price spurt has left that floor pretty much in the dust, and I can't see it coming into play unless there is a "Bad" scenario down the road.
What does your crystal ball say about potential future scenarios??