Daily Financial Moment Of Clarity

| October 24, 2008

Direct from the wise mind of Anna Schwartz courtesy of the Wall Street Journal:

This (the crisis) is not due to a lack of money available to lend, Ms. Schwartz says, but to a lack of faith in the ability of borrowers to repay their debts. “The Fed,” she argues, “has gone about as if the problem is a shortage of liquidity. That is not the basic problem. The basic problem for the markets is that [uncertainty] that the balance sheets of financial firms are credible.”

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Category: Credit Backlash, Economics, Main, Moment of Clarity

About the Author ()

Bruce Henderson is a former Marine who focuses custom data mining and visualization technologies on the economy and other disasters.

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