How can interbank lending be frozen while other types of lending are ok?
Here's my opinion:
It's a sign of the CDS meltdown. The banks trust their customers to repay their debts more than they trust each other to stay solvent.
I think this credit crisis will spread some, especially if more banks closed. However, we don't need to patch over that debt; we need to burn it.
UPDATE: A Fox News talking head said "we're too much in debt. Let's give them more." Yeah, right....
No comments:
Post a Comment
Blogger may have an option for anonymous comments, but I don't allow them. Pick a name, any name, and stick with it.
I also reserve the right to delete any comments for any reason. My press, my rights.