Zev,
"Banks are probably working overtime reviewing their lending portofolios and right now are not in the process of identifying new customers to lend out to, but debtors to take off their books."
But, if this is true, does the Fed actually want to add to the credit crunch in much of the world? Or try to make it easier for loans to be serviced, and buy some time for these problems to be worked out? I am assuming of course that banks, funds and countries want to work out the structural problems, rather than let them fester for another few weeks, months, years. That may be a bad assumption. If it is a bad assumption, then the Fed should probably tighten, or leave rates steady, so the inevitable crash comes sooner rather than later, and forces structural changes by gridlock. |
