So how is the bank supposed to make money? If everything is "free" and you can't make loans, because either, A) no demand, or B) poor credit, what do you do?

the DD's are not even break even due the broken credit markets where CP and other liquid are paying less than 50BP.

With the biggies, they can still gouge their tens of million of credit card holders with overdraft fees and the like to raise money.

THe bigger issue is whether the res construction loan quality doen't deteriorate further.