15
Oct
2008
Mish Solves the Credit Crunch
Commenting on the Paulson offer to big banks that couldn’t be refused, Mish says:
If the goal is to get LIBOR down, then I propose the following: Bank of America lends money to Citigroup who lends money to Wells Fargo who lends money to JPMorgan who lends money to Bank of America. We can have a big circle of all 9 banks forced at bazooka point to take money, to lend money to each other. LIBOR comes down and everyone is happy.
That is not a serious proposal of course, even though pretend lending makes far more sense than massive amounts of real lending.
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