The Master Liquidity Enhancement Con (duit)
In a stunning editorial leap of faith, the New York Times headlines that “3 Major Banks Offer Plan to Calm Debts in Housing.” What three major banks have actually suggested, with Secretary of Treasury Henry Paulson safely in tow, is that someone else sail in to save their considerably-at-risk bacon.
In a stunning editorial leap of faith, the New York Times headlines that “3 Major Banks Offer Plan to Calm Debts in Housing.” What three major banks have actually suggested, with Secretary of Treasury Henry Paulson safely in tow, is that someone else sail in to save their considerably-at-risk bacon.
Paulson, to his credit, is able to announce the laughably named Master Liquidity Enhancement Conduit without so much as the hint of a smile. Not even a little smirk at the corner of the lip. Hank is not a fan of irony, nor does he much embrace nuance. Liquidity enhancement is, in this master-stroke of name over content, a fund to keep a bunch of banks from losing their collective asses on bad loa…