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Originally Posted by SniperSB23
MCCAIIIIIIIIIIIIIIINNNNNNNNNNNNNNNN!!!!!!!!!!!!!!! !!!!!!!  |
In all seriousness, when this started locking up last summer the cost of commercial paper and the Libor went through the roof. Back then, it was more a liquidity issue than one of solvency.
A year later, that has changed. With all of the losses over the last year, banks are hoarding cash now because its all they have. And if they don't have cash, what are they going to lend ? And if they won't lend to each other without charging ungodly rates, what will that do to rates to consumers?