Merv says that credit fears are overstated. Apparently the melt-down may still happen tho, as it could become a self fulfilling prophecy. So what is needed is that all the banks should just relax and it will all be fine.
The problem is that this doesn't make sense from an individual banks point of view. Like a group of soldiers waiting to go across a minefield, no individual wants to be first to walk across.
After you, no sir, after you.
You see they are thinking, after some of their comrades have been blown up, it will be safer for them to cross as there will now be fewer mines...
The real problem of course is the massive increase in the money supply since 1997, this extra (unwarranted) money is being destroyed, but there's plenty to go yet...
I knew it would be someone obvious, but thanks
2008-05-20 @ 18:40