40+ BILLION OF LIQUIDITY?
40 + BILLION OF LIQUIDITY? NOW THAT'S A LOT OF PASTA!
It was reported yesterday that the Feds poured 40+ billion – you heard it correctly, 40 billion – of so-called liquidity in the market to avert a collapse of the sub-prime market. Other central banks throughout the world did similarly. But we are told that this money, if taken by financial institutions, is only a loan and not a grant. Granted.
But, my question is: “if a bank or financial institution, if that be the case, which takes the loan goes bankrupt, does it mean that the loan is lost?” An interesting question which deserves to be answered.
nicola michael c. Tauraso, M.D.
It was reported yesterday that the Feds poured 40+ billion – you heard it correctly, 40 billion – of so-called liquidity in the market to avert a collapse of the sub-prime market. Other central banks throughout the world did similarly. But we are told that this money, if taken by financial institutions, is only a loan and not a grant. Granted.
But, my question is: “if a bank or financial institution, if that be the case, which takes the loan goes bankrupt, does it mean that the loan is lost?” An interesting question which deserves to be answered.
nicola michael c. Tauraso, M.D.
posted by Dr. Tauraso at
8:38 AM
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