game over Posted December 2, 2007 Share Posted December 2, 2007 Free trader is wrong. Providing liquidity = providing cash in exchange for worthless CDOs The money supply won't increase if the debts are eventually re-paid. But is this a realistic assumption? Will Northern Rock re-pay all the "liquidity" it has obtained from the BofE? Bush's latest plan to use tax payers money to help US homeowners that face a re-set will also create monetary growth and, eventually, inflation Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted December 2, 2007 Share Posted December 2, 2007 Bush's latest plan to use tax payers money to help US homeowners that face a re-set will also create monetary growth and, eventually, inflation This has nothing to do with US homeowners, its to shore up the Banks who fracked up lending to dogs and dead people and cant get their money back becuase of the HPC If he was interested in Homeowners, he would have acted a year ago. Quote Link to comment Share on other sites More sharing options...
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