Randi Rhodes Message Board > Are the Big Banks Faking a "Liquidity Crisis"?

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Morgan

Sep 27 2008, 01:34 PM

Are the Big Banks Faking a "Liquidity Crisis"?
Friday, September 26, 2008
George Washington blog

I previously pointed out that when the Japanese government threw cash at their big banks in the 90's, the banks just horded the money instead of using it to restore "liquidity".

Well, a professor of economics and an expert in liquidity now hints that the entire liquidity "crisis" might be a hoax.

Bloomberg quotes the good professor:

"I suspect that part of what we're seeing in the freezing up of lending markets is strategic behavior on the part of big financial players who stand to benefit from the bailout,'' said David K. Levine, an economist at Washington University in St. Louis, who studies liquidity constraints and game theory.

more...

fairyduster

Sep 29 2008, 12:10 PM

Yes, I believe the big banks are faking a lot of this "crisis", and the Dems are drinking wall st. kool aid.
Then there's this;

QUOTE

Treasury Department admits it has absolutely no factual basis for requesting $700 billion - an amount equivalent to about 5 percent of our entire economy. Additionally, the Washington Post reports that "Banks throughout the United States carried on with the business of making loans yesterday even as federal officials warned again that their industry is on the verge of collapse, suggesting that the overheated language on Capitol Hill may not reflect the reality on many Main Streets." Indeed, "many smaller banks said they were actually benefiting from the problems on Wall Street" and "even some of the nation's largest banks, which have pushed hard for a federal bailout, deny that the current situation is forcing them to reduce lending."

http://www.huffingtonpost.com/david-sirota...a_b_130068.html

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