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It's still a US issue because the big US banks don't like to lend (they underwrite bonds and sell them to investors) and quite a bit of lending in the US to US companies is done by European banks...

So if they don't have the liquidity, they'll stop lending in the US.

Wind power

by Jerome a Paris (etg@eurotrib.com) on Mon Sep 12th, 2011 at 11:36:14 AM EST
[ Parent ]
Maybe that inconvenient little fact needs to be pointed out to US Congressmen. Namely, that American investment banking is not into lending but into intermediating...

Economics is politics by other means
by Migeru (migeru at eurotrib dot com) on Mon Sep 12th, 2011 at 12:02:31 PM EST
[ Parent ]
No secret the US banks are intermediaries.  

The consequences of the knowledge is "secret" only in the sense no one wants to 'go there' as it would halt the merry-go-round.

Skepticism is the first step on the road to truth. -- Denis Diderot

by ATinNM on Mon Sep 12th, 2011 at 04:00:37 PM EST
[ Parent ]

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