Wednesday, October 15, 2008

Money and Capital

I really wish the talking-head TV "economists would stop saying banks don't have enough "capital." They have plenty of "capital," it's just that their "capital" assets are tied up in loans that are increasingly non-performing. They just don't have enough of that type of capital which is most liquid, i.e. cash flow or MONEY. No fancy math, just basic terminology that makes sense and is correct.

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