Quote:
Originally Posted by Rickm505
Sapper... they'll keep pumping it in because the alternative is unimaginable
|
Wasn't it already pointed out that these were overnight loans (three days last Friday)? The central banks are loaning to the banks as the banks aren't loaning to each other (against certain asset classes) as a result of uncertainty around the pricing. There's a lot of vacations being canceled in the banking industry right now as people get sucked into valuation excercises.
No new money is being pumped in after old. To think so is to misunderstand what is happening.
However - you are right in away. If the central banks don't provide this liquidity then the alternative would be unimaginable. But then - that's why they are there and all they are doing is there job.