| Snake Doctor |
02-10-2009 03:47 PM |
Is the credit crisis real?
http://tpmcafe.talkingpointsmemo.com...sis_real/#more
Quote:
economics professor Ken Rogoff made an interesting point: The liquidity crisis isn't real. Or, to restate it: Any liquidity crisis is caused by the promise of a government bailout. Ken said that his many friends in investment banking said that there is plenty of money to invest in financial services, but right now it is "sitting on the sidelines." Why? Because the financial services industry does not want to pay the terms demanded. As he put it, why do business with Warren Buffett who will negotiate a tough deal, if you believe that the government will ride in soon with cheaper cash?
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There's a link to a webcast in that article, the gentleman in question starts speaking at about 57 minutes in..if you want to fast forward.
Very interesting discussion, especially since it happened before the $700B bailout was passed.
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