Friday, September 26, 2008

Will Gramps, Jorge or Barry Please Explain This To The American People


Ambinder provides easy to follow bullet points on this economic crisis:

Item: banks can't loan to each other...money rates are surging. see the picture above. How can banks function with those rates? (They can't.)


Item: Chinese banks are no longer allowed to lend in overnight markets to US banks as of yesterday


Item: WaMU fails; is taken over by JP. Morgan


Item: if another bank fails, will the FDIC be able to secure all its deposits? (It has $50b. Bank balance sheets are usually a lot greater.)


Item: where will Congress get $200b to keep the FDIC afloat if more banks fail?

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